Tracking & deductions for employee expenses

Created by Marketing Minute7 on November 15, 2022

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What Can Be deducted as an Employee Expense?

The first question you might have as an employer is what types of employee expenses can be deducted? The answer might surprise you – almost any business expense incurred by an employee can be deducted, as long as it’s considered “ordinary and necessary.”

This includes expenses such as travel, meals, entertainment, dues and subscriptions, education and training, and more. Of course, there are some exceptions and limitations – for example, personal expenses are not deductible. But in general, if an expense is incurred for business purposes, it can be deducted.

Importance of Tracking Employee Expenses

Now that we’ve answered the question of what can be deducted, you might be wondering why tracking employee expenses is important. After all, if expenses can be deducted anyway, does it really matter how well they’re tracked?

There are a few reasons why tracking employee expenses is important:

First, if expenses are not tracked, it can be difficult to prove to the IRS that they were actually incurred for business purposes. This is especially true if the expenses are high – for example, if an employee spends $5,000 on travel, it will be much harder to prove that this expense was business-related if there is no record of it.

Second, tracking employee expenses can help you save money on your taxes. This is because you can deduct more expenses if you have documentation to back them up. For example, if an employee spends $100 on a business meal, you can deduct the full amount if you have a receipt. But if you don’t have a receipt, you can only deduct $50.

Finally, tracking employee expenses can help you manage your budget better. This is because you’ll have a better idea of where your money is going and what types of expenses are being incurred. This can help you cut costs in areas where you’re spending too much.

How Minute7 Can Help Track Employee Expenses

Now that we’ve answered the question of what can be deducted and the importance of tracking employee expenses, you might be wondering how Minute7 can help.

Minute7 is a time and expense tracking software that can help you track employee expenses easily and efficiently. It syncs with QuickBooks Desktop and QuickBooks Online, so you can track expenses from your PC, Mac, iPhone, or Android device.

Minute7 also allows you to create expense reports, so you can see exactly where your money is going. This can be helpful in budgeting and in proving to the IRS that your expenses are business-related.

Finally, Minute7 offers a free trial, so you can try it out before you commit to it. This means that you can make sure that it’s the right fit for your business.

Weighing the Pros and Cons of Tracking Employee Expenses

Tracking employee expenses can be a helpful way to save money on taxes, manage your budget better, and prove to the IRS that your expenses are business-related. However, it’s important to weigh the pros and cons of tracking employee expenses before you commit to it.

Minute7 can help you track employee expenses easily and efficiently. It offers a free trial, so you can try it out before you commit to it.  We would love for you to sign up for our free trial to experience how efficient and cost-effective it is to rely on Minute7.

Contact us if you want to learn more about our products and services before signing up for the free trial. We want to hear from you and help you find the best solutions to your employee timekeeping issues.