6 Tips For Small Businesses To Save Thousands Of Dollarsby Kristen White Blogger Driving to visit clients, picking passengers and delivering stuff can be deductions according to the IRS. But recording all this physically can be tiring and indeed outdated. The best mile tracking app can come in handy in such circumstances. It can record all the mileage during business trips. This will save your time and money all through the year. Here is a simple way to go about it:
There are several deductions we can get throughout the year but the problem has always been we lack the knowledge about them. Annually, thirty percent of deductibles that independent drivers would have earned usually end up in the government accounts. This is a lot of money considering that it is legally preventable.
By learning about all the possible deductions you will be better placed to gain a lot. Utilizing the IRS official website is a great place to start. You can sign up to join forums to ask questions and learn more.
Keep Records of the Expenses
There are a lot of expenses we incur which include insurance, maintenance, title, wireless plan, car payments and washes, registration, loans and many others. They might look as unpleasant but can really benefit you by reducing your taxes significantly. When you register this using pen and paper it becomes grueling but it need not be so. You can use an app to record expenses and reduce your taxes.
Do Mileage Tracking
A majority of independent workers file taxes using the standard mileage to do deductions. But the standard rate usually varies depending on your activities like charity and medical purposes.
With a mileage tracking app, you can calculate the exact mileage deductions and securely keep all the records online to confirm your tax time.
Set a Principal Business Place
You need to set a principal place for your business which automatically should be the place you spend most of your time. This can be your office or even your home. The IRS expects you to have a place you start counting your mileage from.
Put Your Trips in Categories
Categorizing your trips is vital. If you are the kind that meets clients outside your business place then you can maximize the deductions through the mileage. At times these meetings might be in different places like restaurants or some joint in town. You can also be doing other activities like taking bank deposits, sending mail and buying supplies. These can be categorized using an app that is automatically programmed for this purpose.
Track Your Trips as They Happen During Business
With an app mileage tracker, you will have a much simpler work especially if you are a busy person. It will enable you to have accurate mileages even if you use the vehicle for both business and personal use.
Using paper and pen can be challenging and tedious. Chances that you will forget and even put wrong records are very high. With the best mile tracking app you will confidently file your mileage knowing that all your deductibles are in place.
Created on Apr 9th 2018 04:26. Viewed 396 times.
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