Solopreneuers and small business owners save an average of $10,500 a year from tax deductions when using Taxbot. That’s between one-third and one-fifth of most Beauty Service Professionals’ incomes.
One-third of your earnings. Back in your pocket.
This service will help you keep more of what you earn. That’s why we’ve partnered with them to bring you the best tax write-off service on the app and google stores, all included with your KLYP subscription.
The founders of Taxbot came up with the idea to create an app that tracks tax deductions for small business owners and solopreneurs when they found out that over the course of your life, the average person gives up half of their income to taxes. And out of the half that’s left, another half goes to paying off debts like student loans. At the end of the day, most people are living off of only 25% of their income.
That’s where Taxbot comes in.
The app tracks the miles you drive, the expenses you pay, and the receipts you collect for your business. Keeping track of tax deductions is easier than carrying around a notebook: just open your Taxbot app.
When you start driving, Taxbot automatically turns on your GPS to track your trip. Any time after the trip, go to the trip card within the app and swipe right or left to classify it as business or personal.
“It’s like Tinder for expenses,” said Taxbot founder Jake Randall.
On top of the duration of the trips, the IRS wants to see a log of the purpose of your business trips. Taxbot integrates with your calendar and automatically fills in the purpose of each trip. For trips that aren’t on your calendar, just go into the app and type in the purpose.
No more saving receipts, either. When you get a new receipt, just take a picture of it. Taxbot keeps all your receipts in one place, so you don’t have to carry pieces of paper around. Taxbot integrates with your email to access receipts of online purchases. Within the app, all your credit card transactions automatically match up with your receipts, so they’re ready to go for the IRS when tax season rolls around.
Last year, the IRS won 88% of audits. That’s because people don’t have the necessary documents like receipts and mileage logs to back up their reasoning for writing things off. But, when you keep track of mileage, expenses, and receipts, “you are basically bullet-proofing yourself against an audit,” said Randall.
As a mobile provider, the costs of your vehicle, gas, car washes, oil changes, and repairs are all tax deductible. You can also set up multiple vehicles in the app.
As an in-home provider, you can write off many expenses associated with your home. For example, if your office takes up 10% of the square footage in your home, you can write off 10% of the cost of your home, 10% of utilities, 10% of lawn care, and any other costs associated with your in-home business.
Other components of your business, like marketing services and business meals, can be written off as well. You can write off meals only “if you discuss business and it’s pre-planned,” said Randall.
It may sound like a lot of hoops to jump through, but all of this can be tracked through Taxbot.
If you find yourself driving a lot for business, you can purchase a separate device called Taxbot Voice. This device goes in your car and senses when you begin driving. Just press the Business or the Personal button to classify the trip so you won’t need to do it later.
When it’s time to do your taxes, just download the audit-safe report from the app, which includes your profits and losses, receipts, and a mileage log.
When you’re making a commitment to take control of your career, it’s important to run your business like a business, not like a hobby. If you write off everything associated with your business, you’ll get rewarded like a business owner.
We know how draining it can be to run a small business while keeping up with the logistics and details that go into it. That’s why, with your KLYP subscription, getting an accountant is no longer necessary. Taxbot does everything you need to ensure you keep more of your money when tax season is over.