Q: What is the biggest tax mistake bloggers make?
A: Not keeping track of your expenses.
That seems like a pretty simplistic response, but when it comes to tracking expenses we find that although there are plenty of good intentions to do so, there’s often a disconnect when it comes to actually getting it done.
So what’s the best way to track expenses? There are plenty of great ways to do it, but here’s what we recommend to make keeping track of expenses easier.
- Spend 10 minutes right now and write out a list of any expenses you’ll know you’ll incur over the next year – domain name & registration fees, hosting fees, design & advertising fees. If you know general amounts, jot that down too.
- Use whatever tracking system you’ve got. Or at the very least, set up a simple spreadsheet. Track money in and money out.
- Add one additional column to your spreadsheet and add notes to your expenses – what was it for, etc. You’d be surprised how often we get a stack of receipts and find that our clients don’t remember exactly which items they bought – and sometimes the notation on the receipt isn’t all that helpful in jogging their memory.
- Keep your receipts. Stuff them in an envelope or file folder. Snap a pic or scan them. But whatever you do save them.
- If all of this seems absolutely overwhelming look into hiring an expert. You can write this down on your list of known expenses. Hiring an expert will more than likely yield you a bigger return so it’s almost as if the service pays for itself.
Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that.