If you’re someone who receives 1099 income, whether it’s your full-time job or a side gig, you will probably have expenses that are solely related to your business. These expenses are commonly called “write-offs,” and in order to use them to reduce the amount you owe on taxes, you need to track them, organize them, and report them. indi’s expense categorization feature can help you organize income and expenses with every transaction made with your indi card.
What are the benefits of categorizing expenses?
You know the scene: It’s April 14 and you’re sitting at your table with a box full of receipts trying to organize them in time to file your taxes the next day. The hours drag on and you’re more and more frustrated trying to remember if the box of pens you bought back in June was a business expense or a personal expense.
Using indi to categorize purchases as you make them is a seamless way to avoid that whole situation we just described. When you make a purchase related to your business, click the push notification we send to your smartphone. Then, in the indi mobile banking app, categorize the expense as “Business”, choose which business to which this expense is related, choose an expense category, upload a photo of the receipt, add any notes you may need, and hit save.
Guess what? That’s one less receipt you need to shove under the seat of your car and try to remember where you placed it come year end.
How do I organize business expenses vs personal expenses?
Open the indi mobile banking app and click “Activity” at the bottom of the screen. Click on the transaction and choose either “Business” or “Personal.” Only your business expenses will be added to your Schedule C report.
What is the best way to organize receipts?
The best way to organize business receipts is to upload an image to the transaction as soon as you make it. It takes just a moment and then you won’t have to worry about forgetting it at the end of the month or year. We recommend holding onto your receipts even after you upload them just in case you need to reference them at a later time.
How do I fix a transaction that wasn’t categorized correctly?
From the Activity screen in the indi mobile banking app, choose the transaction, correct the error, and click save at the top of the screen.
How do I export a Schedule C report at the end of the year?
At the end of the year, we can help you generate a Schedule C report to use in your tax preparation. In the indi mobile banking app, choose the hamburger icon in the upper lefthand corner, select Statements & Reports, then Tax Reports, then choose the year you would like to view and download. All of your correctly categorized business income and expenses will be on this report, making your tax preparation that much smoother.
This article is not intended to provide financial, tax or legal advice and the information provided may not address your individual circumstances.