How to Track Expenses when Working from Home (Part II)

Continuing with our expense tracking tips for at-home workers, here are 3 more essentials:

Track Your Mileage: Similar to recording expenses in a logbook, it is important to have an accurate record of the business miles you drove. For this purpose, it is advisable to use a separate mileage book that is small enough to keep in the glove compartment of your vehicle. Make it a habit to write down beginning and ending mileage for each trip, and what the trip was for, even if it is not business related. Once a week, record business related trips only from your mileage book into your master logbook. You can then record your mileage along with other expenses bi-weekly into your computer program.

Remember to Track your Travel Expenses: Work-related expenses are not only accrued within your local area, they also happen when you are on the road. If you are an independent contractor, you are allowed to deduct airline tickets, hotel rooms, and a percentage of your meals and entertainment. Direct employees will often be reimbursed for these expenses as well. While on the road, keep all your receipts in one place, ideally separated from your other work-related materials. When you return home, enter your travel receipts in your master logbook and file them along with the rest of your expense receipts.

Consult an Expert: These are helpful tips for setting up a basic expense tracking system for an at-home worker. However, there are wide varieties of circumstances with which a person may be working at home. For this reason, it is always a good idea to consult a professional to set up a modified version of this basic expense tracking system that will make sense in your particular situation.

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