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Stay organized and boost your deductions! Learn how to track business expenses like a pro this summer with simple tools, tips, and strategies for success.
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As the summer sun heats up, so do opportunities for smart business decisions. Whether you’re a solopreneur, freelancer, or managing a growing company, summer is a golden time to refine your financial systems—especially how you track business expenses. At Vincere Tax, we believe that well-organized finances are the cornerstone of tax savings and long-term growth.
With the IRS stepping up audits and enforcement in 2025, accurate and up-to-date records aren’t just helpful—they’re essential. So grab an iced coffee, kick back (briefly), and learn how to track your business expenses like a pro this summer.
The IRS has increased funding through the Inflation Reduction Act, which includes improving compliance and closing the tax gap—especially among small business owners and high-income earners. The 2025 landscape is all about documentation, categorization, and timeliness.
Failing to track business expenses properly can lead to:
Let’s change that. Here’s your summer 2025 guide to expense tracking done right.
There are two primary options:
📌 For 2025, the IRS continues to accept both formats—but automation reduces human error and boosts audit defense. Plus, the time savings are worth it.
If you're still swiping the same card for both coffee runs and client dinners, stop now.
Open a dedicated business checking account and credit card.
The IRS frowns upon co-mingling funds, and separating them:
🔗 IRS Resource: Understanding Business vs. Personal Expenses
Here are the most common 2025 IRS-approved categories for small businesses:
Per IRS recordkeeping rules, you don’t need paper receipts—but you must keep legible digital copies showing:
Use:
💡 Pro Tip from Vincere Tax: Annotate receipts with a note like “Lunch with Acme Corp re: Q3 pitch” so there’s no question during audit time.
If you drive for work (excluding commuting), you can deduct mileage.
🚗 2025 IRS standard mileage rate: 70 cents per mile
Track with:
Log each drive with:
📄 IRS source: Standard Mileage Rates
Instead of using mileage, you can deduct actual vehicle costs, including:
This is often better for high-cost vehicles, but you need detailed records. Once you use actual expenses, you cannot switch back to mileage for that vehicle.
For details, review IRS Publication 463: Travel, Gift, and Car Expenses.
Don’t wait until year-end or even month-end.
Set a weekly reminder to:
🧠 Think of this as brushing your teeth for your business—skip it too long, and the problems pile up.
If your books are messy, time is tight, or you’re ready to scale, it’s time to outsource.
At Vincere Tax, we:
📅 Book your free consultation to learn more.
July is your perfect checkpoint.
Create:
Tools like QuickBooks, Xero, or even your spreadsheet can generate these reports.
Avoid stress later by preparing now:
🧾 IRS Recordkeeping Requirements
The IRS flags:
Avoid issues by:
Helpful links:
No, the IRS accepts clear digital copies with proper documentation.
70 cents per mile. Always track date, purpose, and miles.
No. In 2025, they are back to 50% for client and travel-related meals.
At least 3 years, and up to 7 if they involve depreciation or asset purchases.
The primary purpose of your trip must be business-related to deduct travel. Incidental work on a personal vacation is not deductible.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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At Vincere Tax, we've got the skills and know-how to craft a unique, tailored plan just for you. Trust us – we've got the expertise to make it happen!
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