Tracking Expenses, Deductions, and Tax Readiness

Use this flow to keep financial records clean and always audit-ready. Tracking expenses as they occur rather than at the end of the year ensures you never miss a deduction and your profit margins are accurate in real-time.

See also: Tax Engine Scope & Country-Pack Verification

Expense Tracking Workflow

Your expense dashboard shows your total outward cash flow, categorized so you can identify where your money is going.

1. Open the Expenses Module

   Navigate to Expenses from the sidebar.

2. Log a New Expense

   Click the button to log a new expense.

3. Categorize the Spend

   Assign the expense to a category (e.g., Software Subscriptions, Travel, Office Supplies). Proper categorization is vital for tax deductions.

4. Attach Proof

   Upload the receipt or invoice document. This ensures your records are audit-proof.

Tax Readiness

The tax module aggregates your invoiced income and categorized expenses to give you a real-time estimate of your tax liabilities.

1. Review Income vs Deductions

   Check the summary showing your gross revenue minus deductible expenses to arrive at your taxable income estimate.

2. Export for Accountant

   At the end of the quarter or financial year, export your categorized ledger to share with your CA or accounting professional.

Best Practices

Do

• Log expenses weekly to prevent a backlog.
• Always attach a digital copy of the receipt; ink on physical receipts fades over time.

Don't

• Mix personal and business expenses. If you accidentally pay for a business expense with a personal card, log it as an owner contribution/reimbursement.
• Wait until tax season to classify your expenses.

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Troubleshooting

| Problem | Likely reason | Fix | |---|---|---| | Expense not showing in tax deductions | Wrong category selected | Ensure the expense category is marked as tax-deductible in the master settings. | | Cannot upload receipt | File size too large | Compress your PDF or image to under 5MB before uploading. |