Get Organized for Tax Season with Expense Categories

Working with freelancers and new small business owners, a question I hear often is “What can I deduct?”

Image: Rawpixel.com via Stock Snap

The short answer is any ordinary and necessary expenses of running your business. Ordinary expenses are ones that are common and accepted in your field. Necessary means those that are helpful and appropriate for your business.

I recently wrote a post for Freshbooks that covers common deductible expenses, differentiating between assets that need to be capitalized versus expenses, and how to set up expense categories in Freshbooks.

An Easy Solution to Organized Taxes: Business Expense Categories

If you’re wondering what you can deduct or just trying to get your expenses organized before tax time, give it a read. I hope it helps!

 

 

Failure to File Form 1099-MISC: An Expensive Mistake

Whether you’re working your side hustle or working your business full-time, issuing 1099s is a crucial, yet often overlooked aspect of running a small business. Can you really afford to ignore your obligation? It’s a pretty expensive mistake.

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Who needs to file Form 1099-MISC?

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5 Top Tax & Accounting Tips for New Freelancers

Everyone has a side hustle these days. Earlier this year, Bankrate released a report claiming over 44 million American adults are earning money outside of their main source of income.

Of course, I’m one of them. I started freelance writing as a side hustle in October of 2015 and turned it into a full-time gig ten months later.

Maybe you’re considering a freelancing to save for a big purchase, pay down debt, or just pursue a passion you hope to eventually take full-time.

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Photo by Ben Kolde on Unsplash

Unfortunately, many people don’t consider the financial aspects of the side hustle until they’ve made a few mistakes. Whether your freelance work earns just a few dollars a month or a several thousand, tracking your profits and paying taxes are non-optional. Here are a few essential steps to get started on the right foot.

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