Since claiming your expenses will reduce your net taxable income, you’ll end up paying less in taxes if you’ve been tracking expenses properly.ĭepending on if you charge governent sales taxes for your services, you may also be able to reclaim the sales tax ( VAT, for example) you were charged on business expenses. The tax laws in your area will determine what expenses you can claim on your tax return and what sales taxes you can get a refund for-and as a result, should inform what expenses you track. Here are some basic bookkeeping practices that will make expense tracking easy: It’s no fun sorting through a pile of receipts at the last minute when you realize it’s tax time, but if you put in a little work upfront, you won’t have to. For links, take a look at the “help” section of your spreadsheet.ĥ bookkeeping rules to make expense tracking painless You can also use pivot tables to analyze your expenses by type, to get more of a detailed look of your expense breakdown.As a bonus, this can help you track how long it takes your clients to pay you, and how long you take to pay your suppliers. If you often wait for payment on your invoices, or receive invoices that you don’t pay right away, try adding another date column and labeling them “cash date” and “accrual date.” The accrual date is the date you send or receive an invoice, rather than when the cash changes hands.You can add more drop-down menu options here for new columns you’ve created in the “Income & Expense” tab.Anything you enter in these columns will show up in the dropdown menus of the “register” tab. For example, if you accept multiple payment types, you can track what method your client used to pay in the “descriptions” column. Here’s where you can edit the contents of the dropdown menus to suit your account types, expense categories, and descriptions. If you need to track taxes you’ve paid on business expenses, you can also try adding a tax column and a net total column, so the total sales taxes you’ve paid are separated from the net total.
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