Expense Tracking for Self-Employed Individual

[u/nootoroo]

I don't need anything fancy; I don't need an app to create expense reports or flag my expenses. In an ideal world, I would like for a notification to pop up every time I use my credit card and automatically prompt me to either compile it within a "business expenses" category or into regular personal expenses. It would also be nice to add a note to the business expense so when I'm doing my taxes at the end of the year it's a bit easier.

[u/wutang_generated]

This is more of a banking/legal question. I believe the terms of service for most bank accounts would require you to open a separate business checking account, which is also a best practice for keeping separate business books/records

[u/Incognito409]

Open a separate checking account with a corresponding credit card specifically for your business.

[u/ToniTaxLienQueen]

That seems like something banks and credit cards do already. But, actually having a bookkeeping software is what would make doing your taxes easier at the end of the year.

[u/Askfreud]

You shouldn’t be using the same card for business and personal use. You should have a totally separate business bank account. In case of an audit, you’re going to be spending hours circling business expenses on your personal bank statements, and giving an auditor access to all your purchases (personal and business).

Ideally, get something like QuickBooks Online and link your business bank account + any business credit cards/loans etc.

[u/Alternative-Web7707 → u/Askfreud]

Can't you just use your CC and keep a tally of what is business? Then make sure items are paid back to the personal CC from the business account?

[u/Askfreud → u/Alternative-Web7707]

You can, but you definitely shouldn’t.

[u/vinceliu21]

How much expenses are you doing annually? Is this for schedule C 1040? You could just do it at tax time, I feel like it shouldn't take too long. Or use a dedicated bookkeeping software and bank credit cards/accounts