Now that tax season is in the rear view mirror, I’m sure a lot of you wished that it would have been a little easier to complete your taxes. Fortunately, for many, it can be. Your smartphone has the ability to make keeping track of business expenses a lot easier and more organized. There are many apps available that can help you complete tasks such as filing business related expenses, tracking hours, tracking mileage and tracking invoices (paid and unpaid). Having this information can make filing your end of the year financial information both a lot easier and more accurate.
Many times when people make New Year’s resolutions they are long forgotten about once May arrives. What is worse is when people make resolutions to “make more money or “spend more time with their family” they don’t ever really make any changes to their regular life. They just set the goal that magically they will be more successful or have more free time than last year even though they are doing the exact same things. We know what results last years actions will get. This is where the magic of mobile technology can come to the rescue. Yes, there is a bit of a ramp up process where you have to change your behavior to do things differently. It takes time to get in the habit of instantly filing an expense on your phone, or to turn on your phone’s gps and use an app to track miles, but in the end, when you need all of this information, you will be very happy that you did. The other benefit is that when you are tracking your information more carefully, it is much easier to see what progress you are making, and where you have opportunities to sharpen your game.
If you need more convincing, consider this- Most apps have the ability to have back up storage in their secured cloud. This means that even if you lose your phone, your reports/contacts/receipts etc. will all be backed up for you. You can usually access the information from your laptop or desktop computer as well. What is your backup plan now if you lose a receipt or forget to log a deductible business expense? Most people do not have one. This is basically throwing money out of your car window as you drive away from a client. Most CPAs would not recommend that behavior.
Do the right thing for yourself. Start using your phone to keep up with your business costs. You will thank yourself that you did. Your accountant will thank you too.