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!