Tax time reports in FreshBooks

January 3, 2011


Hooray! It’s New Year! Happy New Year! You know what’s right around the corner? Tax season! Paperwork is so exciting and it just takes minutes to run all your reports. Right?

This year, since you used FreshBooks so diligently, you’re going to be done in minutes, assuming all your records are up to date.

If they’re not up to date, track down those checks and get them entered in FreshBooks. Also, enter in those expenses (receipts) that you’ve paid for this year either manually or using FreshBooks bank statement importer (csv). You may also want to send everything over to Shoeboxed if you have a little more time before your reports are due and not enough time to do it yourself.

Before you follow these steps a long, we recommend you decide whether you use the cash or accrual based accounting. We’ll assume you use the cash based accounting method as you’re a service based business. Accrual steps are also available.

First, you’ll want to figure out your revenue. Simple. Just go to your “Reports” tab and click on “Invoice Details”. You’ll need to set the following:

  1. Date range from “01/01/10 to 12/31/10”
  2. Date to use: “Date Paid” (Invoice Date for Accrual)
  3. Clients: “All”
  4. Invoice Status: “2 Statuses” (All for Accrual)
  5. Click “Update”

The next thing to do is “Export to: Excel” and send it to your accountant or use the totals to do your own taxes (at the bottom).

nvoice details tax report

And secondly, your expenses. Under the “Reports” tab, click on the “Expense Report.” Then set the following:

  1. Date range from “01/01/10 to 12/31/10”
  2. Group by – Any (“Author” if you have staff)
  3. Limit to: “All Categories”
  4. Click “Update”

Then, just “Export to: Excel” to send to your accountant. Remember to keep your receipts just in case of a tax audit.

All you need to do now is file your taxes or pass this information to your accountant and you’re done! If you are looking for more education about Taxes, check out this virtual workshop by the IRS.


about the author

FreshBooks is the #1 accounting software in the cloud designed to make billing painless for small businesses and their teams. Today, over 10 million small businesses use FreshBooks to effortlessly send professional looking invoices, organize expenses and track their billable time.