Keeping track of your home improvement or renovation business’s expenses is much easier if you start tracking them early in the year, rather than scrambling to collect receipts at the end. Make sure you’re set up for a stress-free tax time by getting organized now.
All-Purpose Tax Apps
Some tax apps track your mileage, receipts, and expenses instead of focusing on a specific aspect of deduction tracking. This makes them a great timesaving option, especially if they sync with your preferred tax-prep program. Check the Google Play Store or Apple App Store to find a highly-rated deduction-tracking app that fits your specific business needs.
Mileage Tracking App
When you drive between one job site to another, that’s considered a business mile, which is a deductible cost for most businesses. Keep track of your business miles and other vehicle-related expenses with a mileage-tracking app. There are hundreds of highly-rated tax deduction and tracking apps to choose from, so visit the app store of your choice to find one that offers the features that fit your specific business needs. Some important features you may want to look for include:
Differentiate between business miles and personal miles for easy sorting.
The app automatically detects when your vehicle starts moving and tracks your mileage. However, you’ll still need to identify which miles were business miles.
Track other business expenses such as gas, tolls, and business meals.
Sync’d Expense Tracking:
Connect your bank account or credit card to the app to track other expenses.
A detailed, IRS-compliant mileage report showing your business miles and travel expenses.
Tax App Sync:
Imports your mileage and expenses from the app to your tax preparation software.
Save routes you regularly drive so that they’re automatically categorized as business or personal miles.
Receipt Management App
If you’re ready to move past keeping your receipts in a shoebox or filing cabinet, but not quite ready for a full-time accountant, a receipt-tracking app is likely a good option for your business. A receipt tracking app will save a digital copy of your receipts so that you can easily reference back to them come year’s end. Some features you may want to consider when choosing a receipt tracking/management app include:
Saves scanned or photographed copies of receipts instead of requiring manual input.
Optical Character Recognition (OCR):
Apps with OCR can pull the information from photographed or scanned receipts and convert it into usable text.
Allows you to classify your different receipt types to easily single out a certain type of expense.
The ability to attribute receipts to different bank accounts.
Tracks and compares different expenses over time to give you helpful insight on how your business budget is being spent.
Keeping your receipts and miles organized is a great way to streamline your year-end taxes. If you’re looking for other ways to make your business more efficient, check out Foundation Finance’s home improvement and renovation financing. We approve your customers with FICOs as low as 600 so that you can convert more business. You’ll also find a variety of tools designed to make the financing process easier so you can get your jobs underway.
This article is for general informational purposes only and is not intended to provide legal or tax advice. Please consult your tax, accounting, or legal advisor for specific advice concerning your business’s tax needs.