Check Register App Review

I love Excel. So, I designed a spreadsheet to track my expenses. I’ve used it for years and it’s perfect for me because I can customize the spreadsheet to fit my needs. I decided to try the free apps on my iPad for a check register. I’ve tried a few and here is what I’ve found.

Checkbook – This is my favorite app. I like the categories for expenses  with pictures, the description that auto fills, and recurring payments. I don’t like that the upgrade is required to add more than one account. I also wish I could clear the transaction while I’m in the entry screen.

Balance – I haven’t tried this one too many times. You can clear the transactions on the entry screen. But, the downside is you can’t clear the entry on the transaction list screen. It looks pretty boring. It doesn’t have categories for transactions.

Check – This app allows you to add multiple accounts without upgrading. When you open the app, you are required to watch an ad. Like Checkbook, you need to click on a tab at the top for expense vs. income. I would prefer to put in a +/- sign as I am entering the amount. I can put in categories but it doesn’t have the cute pictures like Checkbook.

My Check Register – This looks like a paper check register. This app doesn’t have categories. It only allows transaction detail like a traditional check register. I also don’t like that you can’t print out category totals.

They’re all great apps but for my purposes, I’m most excited about Checkbook. I will be taking the other apps off soon. Checkbook fills all of my needs with being able to print out the reports of each category.

 

 

 

 

 

Personal and Business Expenses

When you own a business, expenses can quickly add up. Businesses should try to keep personal and business expenses separate. Sometimes, that proves difficult for small businesses. So, if you do keep expenses together, keep all business receipts. Then, make a notation or category for business expenses so you can easily find those at tax time. 

“Business expenses are the costs of carrying on a trade or business, and they are usually deductible if the business is operated for a profit.” IRS Pub 535

Expenses should be ordinary and necessary. Ordinary means common and acceptable in your industry. The expense should also be appropriate and helpful. It is easy to find examples of expenses that the taxpayer disagreed with the IRS as to ordinary and necessary. 

For example, the IRS closely watches cell phone usage. You can only claim the business portion of expenses. So, you must calculate the portion of business usage because you likely use it for both.

“Generally, you cannot deduct personal, living, or family expenses.” IRS Pub 535

You should be careful to save receipts from large retailers, i.e. Costco, Amazon. In an audit the IRS will generally want proof that these expenses are for business purposes. 

Some additional expenses that can be tricky include:

• Business Use of Home. If you use part of your home for business, you may be able to deduct expenses. The area of your home must be used regularly and exclusively for business. Calculate the percentage of your home used for business and then you can deduct this portion of mortgage interest, insurance, utilities, repairs, and depreciation. 
• Business use of your car. If you use your car for both personal and business purposes, you must divide expenses based on actual mileage. Look at my post on this subject for more information.
• Interest. If you borrow money and use part of the money for personal and part for business, figure out a percentage for each and only deduct the business portion of the interest you paid.

Always be careful when claiming expenses that they are for business purposes. In the weeks to come, I will add more information to help you complete most of your own accounting.