It is important that business owners and contract workers keep detailed records of their expenses to ensure they pay the correct amount in taxes each year and to have information available in the case of an audit.

The good news is technology can make this process faster and more organized without a significant amount of extra work. Gone are the days of boxes full of faded receipts, now tracking software can store important documents.

Mint

This platform is great for individuals wanting to take control of their personal finances. The program allows a user to insert basic information such as banking, credit and investment account and begins tracking the month-to-month cash flow. It also has goal setting tools to measure progress. The software is free and secure. Data is encrypted with a 256-bit encryption level and the data exchanged with Mint is encrypted with 128-bit SSL, which means you can be confident your information is safe. Aspiring business owners can use this technology to set savings goals that would provide enough financial flexibility to pursue an entrepreneurial idea.

Level Money

Much like Mint, this app tracks spending habits and provides bill predications based on current trends. It also provides access to bank and credit card accounts in one location. This app tracked more than $25 billion since launching. It is equally as secure to store personal information. The purpose of the app is to make it easier for users to make spending decision based on what is available. It also provides financial insights by creating specific trackers.

TripLog 

For business owners, miles driven while doing work add up fast. If you don’t track these miles you cannot write-off the expense on your annual tax liability. TripLog automates mileage tracking via GPS, Bluetooth or a power source connection. It also has the option to track other business expenses, fuel economy calculation and creates comprehensive IRS compliance reports. The app has a free version, but the paid options offer more comprehensive reports. The cost for the app is between $1.50 and $2.50 a month, which is less expensive than most comparable types of software.

GnuCash.org

This site provides free detailed accounting software for Microsoft Windows, Mac and Linux. Users can do double-entry accounting, small-business accounting, create reports and graphs and make financial calculations. The software is updated frequently through crowd sourcing and an Android app is available. Unlike other apps, the data doesn’t automatically connect with accounts and instead must be manually entered. However, it offers more robust accounting features.

Evernote

If you have an accountant and you just need to keep track of receipts, a great resource is Evernote. Users can take photos of receipts and store them in corresponding folders. They can also use it to document other expenses to provide the information later in an organized format to a CPA.

It doesn’t matter how you decide to track your expenses, we can help if you ever find yourself in an audit or owing money to the IRS. If you need a compliance check, or if you just received a letter from the IRS give us a call to schedule a free consultation at 844-841-9857.