Congratulations – you’re in business!
That means that you’re in charge of tracking your expenses and paying taxes. I am NOT a tax expert and this is not tax advice (that’s why I pay someone to do it for me 😉) but I’ve been in this business for almost a decade, so here are some tips and tricks on tracking your expenses and staying organized for tax time when you receive your 1099 from ALIGN!
  • Save receipts of ANY money that is spent on your business (that $29 that you just spent to start your biz? Yeah. Write off). Write the purpose on the top of the receipt.
  • Create a folder labeled, “2023 Expenses” to easily save any email receipts.
  • Download MileIQ to your phone. It’ll track your mileage, and all you have to do is categorize your drives as “business” or “personal.”
  • I recommend Quickbooks for easy tracking of expenses, but if you’re not into that, get good at using spreadsheets to track.
  • Keep your business financials separate from your personal financials. I recommend opening a separate checking account for your business.
It can be boring, but I promise you, you will be SO thankful if you’re organized come tax time…take it from someone who is never, ever organized come tax time 🙃
A note for anyone who has no idea what I’m talking about when I say things like “1099” or “write off” or “expenses”:
If you’ve ever been an employee before, you’ve received a W-2 form after the work year to file taxes. Most likely, a certain amount of money was automatically taken from your paycheck to pay your taxes, and often times, when you file, you get a tax refund.
A 1099 is basically a tax form that will report ALL of your income from ALIGN. You are in charge of paying taxes on this income. You can write off business expenses, and I also recommend saving a portion of your income in case you owe money (some people get upset when they owe money…hello, that means you MADE MONEY. It’s awesome. Just prepare yourself to make money 😉). Again, you’ll thank yourself.
If you have questions, do your research and/or speak with a tax professional. I take money very seriously…you should, too. Educate yourself!