What if I have more than one business? Can I track them all in Deductr?
Theoretically, there is no distinction between multiple sole proprietorships for tax and for legal purposes. Therefore, all sole proprietorship activity can be reported on one Schedule C whether it was from one business or five. This is the same when using Deductr for multiple businesses.
Therefore, the easiest way to handle multiple income streams is to SET UP CUSTOM INCOME CATEGORIES to track the income from each business.
Since all your other expenses are likely related to both businesses, such as your home office, office supplies, the business use of your car, etc., it doesn't matter if they are all combined for both businesses. Whether you eventually report the activity on one Schedule C or multiple Schedule C's, your tax preparer will know how to separate out the different business expenses. But either way, the net effect on your taxes will be the same. If you have expenses that are specific to one business over another, you can SET UP CUSTOM EXPENSE CATEGORIES for those particular expenses.
However, there is an exception.
If you have multiple single member LLC's, for legal reasons, you will want a separate Deductr account for each business to maintain records independently. You will also want to have a separate checking account for each LLC as each one is legally a separate business entity. You can't double dip on the home office deduction but you can record mileage from one vehicle for both businesses. Check with your tax preparer to discuss how this would apply to your particular circumstances.
Consult your tax professional to see if this fits your circumstances. This is not to be taken as tax advice. Please refer to our End User License Agreement.