Completing your taxes is no easy feat. Getting as many deductions as you can is stressful and time consuming, so give yourself a pat on the back. You did it! Before you stow away those completed tax forms and receipts though, try to strategize new organizational ways to prepare for the 2016 tax year. You’ll appreciate the extra thought later on.
You want as many deductions as you can get, but you don’t want to have to sort for hours through receipts, invoices, and paperwork. Before you start filling up your filing cabinet already, consider going paperless. This doesn’t mean you need to invest time into scanning, if you own a smartphone or tablet, you already have the tools to stay organized. With these few apps, you’ll be able to effortlessly back up those handy property deductions.
Deduct Your Home Office Expenses
While deducting your home office might be pretty easy, keeping the records necessary for proving your deductible office expenses can be pretty difficult. Not only do you have to sort through physical receipts, but you have all your online purchases to keep track of too. To cover your online purchases, use the free app Slice. This app will automatically pull your online purchase receipts from your email account and keep track of delivery progress, rebate eligibility, and recalls. It’s also convenient when you want to return an item. Don’t let yourself go through a year’s worth of email next tax season, use this app to keep track of all your online business expenses.
To cover any physical documents you need for deductions, use Evernote Scannable. Just like we covered in our previous article, this app lets you scan documents, receipts, and business cards so you can have them on the go. Link it up to your free Evernote account and you’ll be able to organize and categorize all your scanned documents, targeted towards next tax season.
Deduct Your Mileage
Whether you’re using your personal car or have a dedicated car for your business, keeping track of your travel expenses is crucial. Everlance is a free mileage tracking app. With their automatic trip detection, the app will automatically track your mileage through your GPS every time you have a business trip, or travel to handle business related to your rental properties. Everything is stored in the cloud, so your data is secure for next year.
All-In-One Deductions App
If you don’t want to fill your phone with multiple different apps, check out Shoeboxed. While the ShoeBoxed service costs $9.95 a month for the lite version (can scan 50 documents per month), this application includes receipt and business card scanning and processing, mileage tracking, and generates expense reports that are aimed at tax preparation. Plus, the cost of the app itself does count as a business expense.
While 2015 tax season will soon be over, don’t get caught up in old, bad habits. Stay organized physically in your home office and digitally through apps. By just spending a little time organizing for next year, you’ll avoid the headache of business taxes for the next few years.
Do you use any apps to keep on top of your tax deductions? Which would you prefer to use for your taxes: multiple free apps or an all-in-one app that costs? Let us know your opinion in the comments section below and be sure to subscribe!