I know you don’t want to hear it but we’re approaching the end of the year and some freelancers are frantic about how much they undershot their taxes. No matter how fiscally responsible and organized you were this year, there’s always room for improvement in your money management systems. So let's start 2018 off on the right foot. Here are 3 apps that can help you keep track of your expenses and budget appropriately for paying taxes.
MileIQ automatically tracks your mileage, and once you reach your destination you can classify whether it was a business or personal trip with just one swipe of your finger. It takes all of the guesswork out of your logging and documenting, and ultimately has the potential to save you lots of money on tax deductions.
One of the struggles of being a freelancer is that you have to pay your taxes yourself (usually quarterly!) instead of having your employer deduct it from your paycheck and pay it for you. Qapital makes that easier, by automatically deducting a portion of each payment you receive and placing it aside for taxes. When the time comes to pay taxes, just transfer those savings back into your normal account to pay the IRS. That means you don’t have to think about taxes until it’s time to actually pay them!
Tracking expenses and saving receipts is key as a freelancer-- not only so you’re prepared in the event of an audit, but also so that you can write off deductions to your fullest extent. Shoeboxed is a great way to digitize and archive your receipts. If you’re worried about the accuracy of the digitized data, fear not! Shoeboxed has humans verify the receipt data; it’s then turned into an organized database that you can search at any time.
Creative Community Developer at Snapfluence.
I'm the Oxford comma's biggest fan.