When you are your own boss, there are a number of advantages that come along. It includes being able to set your vacation schedule and even your own hours. With this comes along a high level of flexibility. You can easily work remotely and roam around as you wish to. Sometimes, you might not even have to change out of your pajamas all day!
On the other hand, there are many advantages when working for an employer as well. Walking away from the convenience of a traditional job also takes away; the benefits package including great Tax Services in San Antonio and the steady paycheck.
However, apart from everything else being your own boss means you will have to pay quarterly estimated taxes. It also means that you will have to track your business costs.
As Tax Professionals in San Antonio Uhlenbrock CPA has some great tips on how to diligently track your self-employed expenses.
Have a look:
1. Knowing what comes under self-employed expenses
Tax Professionals in San Antonio would tell you that before anything else, it is crucial to understand what comes under a business cost also called the self-employed expenses. The definition by IRS says that those expenses must be “necessary” and “ordinary” to your business.
For instance, on attending a work conference, the expenses of the tickets would come under business expenses. However, getting a spa to relax before the conference would not. On the other hand, the price of purchasing a URL and domain hosting costs for your site’s business would count as a business expense. Deducting the cost of a personal website having nothing to do with the business is something you cannot do.
2. Spreadsheets to the rescue
In your spreadsheets, you could create columns like the item, cost, date, and receipt. You could also make notes about the location of the receipt, like in an email folder, as it was an online transaction.
This process streamlines the process for filing quarterly estimated taxes and helps you track self-employed expenses.
A spreadsheet comes in handy if you are on your own as it is easy and free. However, you may need a little more assistance if you are thinking to grow your business.
Check out some more tips on the subject, in the next blog. Uhlenbrock CPA not only provides the best advice but also the best Tax Services in San Antonio.