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Easy Free 15 minutes

How to Track Business Expenses for Tax Deductions

Stop missing deductions. Set up simple expense tracking that could save you thousands.

What You'll Need

Steps

1

Choose an expense tracking method

Pick something you'll actually use.

  • Simplest: Wave (waveapps.com) — free, tracks expenses and income together
  • Photo-based: Expensify (free tier) — snap receipts, auto-extracts info
  • Spreadsheet: Google Sheets — free, total control, requires discipline
  • Already use QuickBooks: Use its built-in expense tracking
Tip: Wave is great if you already use it for invoicing — everything in one place.
2

Connect your business bank account

Let the app pull in expenses automatically.

  • In Wave: Go to Banking → Connect an account
  • Select your bank and log in
  • Transactions import automatically
  • Review and categorize new expenses weekly
Tip: Use a separate bank account and credit card for business. Makes tracking 10x easier.
3

Learn the main expense categories

Know what you can deduct.

  • Equipment and tools
  • Vehicle expenses (mileage or actual costs)
  • Materials and supplies
  • Insurance, licenses, permits
  • Phone and internet (business portion)
  • Marketing and advertising
  • Professional services (accountant, lawyer)
4

Set up receipt capture

Receipts are proof. No receipt = no deduction if audited.

  • Download the Wave or Expensify app
  • When you buy something, snap a photo immediately
  • The app extracts the info and attaches it to the expense
  • Get in the habit: buy something, take a photo, move on
Tip: Email receipts count too. Forward them to your app's email import address.
5

Review weekly

10 minutes a week prevents tax season panic.

  • Pick a day (Friday afternoon works well)
  • Log in and categorize any uncategorized expenses
  • Check for missing big purchases
  • Make sure everything looks right

You're Done!

You're now tracking expenses! Your tax preparer (and your wallet) will thank you.

Pro Tips

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