FIND OUT HOW TO SAVE MONEY IN YOUR NOTARY BUSINESS AND REACH FINANCIAL GOALS 

Maximizing Your Tax Deductions: Expert ​Bookkeeping Tips for Notaries

Let's explore how bookkeeping can help notaries maximize their tax deductions and achieve their financial objectives.

*It's important to consult with your tax professional for state and federal tax compliance when deducting mileage and business expenses as a notary.

Watch this clip from a training with bookkeeper, Tara Bates of Zeal Bookkeeping: 

Click below to find out how to RSVP to the next financial event in Complete Notary Mentorship! 

How Bookkeeping Can Help You Maximize Tax Deductions

Bookkeeping is the activity of keeping records of your financial affairs for your business. Essentially, it means tracking where your money is coming from and where it's going. 
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By keeping accurate and timely records of revenue and expenses, you can maximize your tax deductions in your notary and signing agent business and deduct these expenses on your tax returns in order to ensure that you have a clear record of all your business expenses.

3 Tips for Keeping Your Bookkeeping Organized and Effective for Tax Season

Utilize these three tips to find out how you can keep your bookkeeping organized so you're ready for tax season all year long!
#1: Open a separate business bank account to separate from personal expenses

One of the primary suggestions is to separate business expenses from personal expenses by opening a separate bank account. 

This will help in tracking business-related transactions and prevent overspending. Additionally, keeping receipts is another essential aspect of maximizing tax deductions. 

The IRS recommends keeping receipts for up to seven years, but digital copies are also acceptable. There are apps that make it easy to take photos of your receipts and store them for you like Keeper, Evernote or Quickbooks.
#2: Track all business related expenses 

​Tracking all expenses in your notary business is crucial for maximizing tax deductions and staying on top of your finances. 

It's important to note that not all expenses are considered business expenses. 

Business expenses are defined as anything that ensures you are running your business to its potential. 

Here is a short list of some business expenses:

  • Memberships and courses for business growth (including your Loan Signing System course and CNM!)
  • ​All car and travel expenses such as gas, mileage, parking/toll fees, registration fees and license fees)
  • Client gifts
  • ​Meal expenses
  • Office supplies
  • ​Utilities

It's also important to learn about the power of P & L (profit and loss) statements. These statements can help you see where your money is going and where adjustments can be made to maximize profits. 
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By tracking all of your expenses, you can ensure that you're taking advantage of all possible deductions and keeping more money in your pocket.
#3: Choose a software or system that works for you

​This could be an Excel sheet, a piece of paper and a pen, or a software like QuickBooks or Notary Gadget.

It's important to choose a system that you feel comfortable with and that fits your budget so you can find a process that works for you and is not overwhelming. 
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Enter your transactions into your chosen system or software and review them at the end of the month to ensure their accuracy.

More on Travel Expenses as a Mobile Notary

​If you’re using your personal car for work as a mobile notary, there are two ways to optimize your taxes: tracking mileage or tracking expenses.

  • Tracking Mileage: This method involves keeping track of the miles you drive for business purposes. 

    For example, if you drive 25 miles to a client's house and 25 miles back, that's a total of 50 miles. Double check the IRS mileage rate before filing, but currently it is .65 cents per mile for business use but in this example, you could deduct $32.50 for the 50 miles you drove for business purposes.

  • Tracking Expenses: This method involves keeping track of all the expenses associated with your vehicle, such as gas, oil changes, and repairs. 

    ​At the end of the year, a percentage of these expenses can be deducted as a business expense. For example, if your total expenses were $5,000, your tax professional might allow you to deduct 30% of that amount, which would be $1,500.

It is recommended to keep track of both methods and use the higher amount for tax write-offs. You can use an app such as MileIQ, MileTracker or even QuickBooks for easier record tracking.

Ultimately, it’s essential to keep track of your expenses for business purposes because it can help to save you money on taxes. 

Take Action Today: Learn More About Taxes in Complete Notary Mentorship.

Remember, it is important to speak with your tax professional or CPA to get advice on what can be written off as a business expense or any tax related advice.

For more information on tax deductions and maximizing your income in your business, click below to learn more about Complete Notary Mentorship where you can watch more live trainings from financial experts!