New: Tax-Friendly Categories for your Expenses
When you log into your FreshBooks account today, you may notice that your expense categories have been updated. Below you will find an outline of why your categories have been updated (to help file your taxes!), and what you need to know if it looks like your old categories have disappeared (fear not, they are found under “other expenses” and all your prior work categorizing your expenses is intact!).
Why have my default categories changed?
As mentioned above, today FreshBooks is rolling out tax friendly categories to make filing your taxes much easier for you, your accountant and your government. These new default categories organize your expenses so they are mapped to categories found on common tax forms in countries such as the US, Canada, the UK, Australia and New Zealand. In addition, FreshBooks now lets you add your own subcategories to the existing defaults provided, enabling you to keep an even more detailed record of your business expenses.
What happened to my old categories?
Don’t worry, all your painstakingly captured prior categories are perfectly preserved; they have just been moved into the new category/subcategory format and now appear under the category “Other Expenses.” You can maintain your prior structure or easily transition to the new tax friendly categories by re-categorizing your old expenses (in bulk) by following instructions found on our FAQ page.
What are these subcategories all about?
If you have a lot of expenses, being able to subcategorize this is pretty handy. Subcategories let you get specific about your business expenses while still keeping things rolled up into the main business expense reporting category for your taxes. For example, “Travel” is a common expense category on tax forms, but by filing your travel costs under subcategories such as “Hotel”, “Airfare” or “Taxi & Parking” you’ll have the ability to segment where your money is really going, and track the details closely using the Expense Report in FreshBooks.
What else do I need to know?
One change you may notice is that you’ll no longer find the “Categories” subtab under the main Expenses tab. Instead you’ll see the category dropdown list now offers you all of these functions (such as editing or creating a new expense). Adding, deleting, and renaming subcategories can be done in-line while you are logging an expense.
To categorize an expense, you can either click in the category field to get the dropdown list of categories/subcategories or just start typing and select the category/subcategory you want from the auto-suggest list.
If you have any questions about Expenses (or anything else) don’t hesitate to call on the FreshBooks Support team to give you a step-by-step walkthrough.
PS – this all works with the new FreshBooks iPhone app. If you haven’t seen it, download it here.