How to Track Business Expenses Without an Accountant
Most self-employed people leave hundreds — sometimes thousands — in tax deductions on the table every year because they didn't track their expenses throughout the year. Here's a simple system that takes 5 minutes per week and pays off significantly at tax time.
Step 1: Open a dedicated business bank account and card
If all business income comes in and all business expenses go out through one account, expense tracking becomes mostly automatic. The biggest tracking problem is mixing personal and business spending — eliminate that and you're 80% of the way there.
Step 2: Choose your tracking method
Three options, from simplest to most powerful:
- Option A — Spreadsheet: A simple Google Sheet with columns for Date, Description, Category, Amount. Update it weekly. Free, works fine for most solo businesses.
- Option B — Wave (free): Cloud-based accounting software. Connect your bank account and it automatically categorizes transactions. Review and correct categories once a month.
- Option C — QuickBooks Self-Employed ($15/mo): Auto-categorizes transactions, tracks mileage automatically, estimates quarterly taxes, and exports directly to TurboTax. Best for businesses with mixed personal/business use.
Common deductible expenses to track
| Category | Examples |
|---|---|
| Vehicle | Mileage to/from jobs (67¢/mile in 2024), gas, tolls, parking |
| Equipment & tools | Anything used for work — clippers, cameras, ladders, fitness equipment |
| Supplies | Cleaning products, packaging, paper, printing |
| Insurance | Business insurance premiums, health insurance (if self-employed) |
| Marketing | Google Ads, business cards, website hosting, listing fees |
| Phone & internet | Business portion (estimate % used for business) |
| Education | Certifications, courses, trade publications, workshop fees |
| Home office | Portion of rent/mortgage + utilities if you have a dedicated workspace |
The mileage deduction (don't miss this one)
Every mile you drive for business purposes is deductible. At 67¢ per mile (2024 IRS rate), a plumber who drives 10,000 miles per year to job sites gets a $6,700 deduction. That's real money. Track your miles with:
- MileIQ — Auto-tracks all drives, you swipe left/right to categorize as personal or business. ~$6/month.
- QuickBooks Self-Employed — Includes mileage tracking built in.
- Manual log — Note odometer readings at the start and end of each work day. Less convenient but free.
Weekly tips for your industry
Pick your industry and we'll send only what's relevant to your business.
No spam. Unsubscribe anytime.
Disclaimer: This guide is for informational purposes only and is not legal, tax, or insurance advice. Always verify specifics with a licensed professional in your state.