We know keeping track of your expenses is a major pain, so we’ve designed Everlance to make your life easier, especially if you’re in business for yourself.
With Everlance you can:
1. Make more money by paying less in taxes
2. Save time
3. Backup your data to the cloud
Whether you consider yourself a solopreneur, self-employed, or independent contractor as far as the government is concerned for tax purposes you are treated like a single person corporation. Like any other corporation you need to pay taxes on the profit of your business. Come tax time the revenue you report that you’ve earned throughout the year isn’t going to change — this is found on your 1099 or other tax document and the government already has a copy. However, the burden of what you claim for expenses is on you. This is where Everlance comes in. Everlance’s app lets you automatically track all your miles and other business related expenses. The more expenses you account for the less you have to pay in taxes. As a freelancer your chance of audit is significantly higher than the average person. Everlance stores a digital receipt of all your transactions on our secure server so you can rest easy knowing that in the event of an IRS audit you’ll be protected.
Step 1: Tell us a little about yourself
In addition to automatically tracking your mileage and allowing you to input your revenues and expenses Everlance also provides an intelligent overlay of potential qualifying business related expenses depending on what type of Freelancer you are. We still have a lot of work to do on this front, but by telling us you earn income from Uber we can suggest expenses you might not think to claim such as a cell phone accessory, prescription eye wear, your mobile phone plan, etc. These expenses can add up over the course of a year for some users to well over a $1,000.
Step 2: Check whether Everlance is enabled
Go to Settings>Privacy>Location Services and make sure you have Everlance set to “Always” (this should be enabled by default). Enabling your Wi-Fi will also significantly improve location accuracy. If you’d prefer to enter your miles manually you can also turn Automatic Trip Detection off in the Settings menu.
Step 3: Categorize your miles
For many people the vast majority of their expenses are vehicle related. The IRS asks people to report their expenses using one of two methods: Actual Expenses or Standard Mileage Rate (blog post on this to come). For the vast majority of freelancers the Standard Mileage Rate is not only more convenient, but worth a substantial amount more. In 2015 this rate was $0.575 per mile so if you drove 10,000 miles for your business that’s $5,750 worth of expenses you do not need to pay taxes on!
In order for Everlance to work you need to tell us which miles were business related and which were personal. Do this by swiping left for personal, far left for Medical/Charity or right for work. You can also disable the automatic tracking feature from the home screen by sliding Automatic Tracking to On or Off. We recommend using the tracker as it will give you a nice mileage receipt for documentation purposes (e.g. proving to the IRS) the automatic method will provide you with a digital receipt of your trip.
Please note that automatic tracking is still not 100% accurate! Having Everlance catch all of your trips is quite a technical challenge and there are a lot of forces outside of our control (how your mobile phone operator switches you from cell tower to tower, whether you lose signal driving into a parking garage, etc.) that being said our team is hard at work on improving it every day. In order to maximize accuracy we recommend manually starting your trip with “Start Tracker” from the home screen.
Step 4: Add your revenue and non-mileage expenses
Everlance will also allow you to record all your expenses outside of mileage you incur in your line of business (paint for an artist, nails for a handyman, etc.). The underlining premise the IRS will use to assess whether an expense is legitimate is whether it is deemed “Ordinary” and “Necessary” for your line of business. You can read more on their guidelines from the IRS here; we also recommend taking a look at our Tax Guide. In order to add your revenue or expenses simply tap the “+” on the Home Screen.
Step 5: Export your data
Everlance saves all of your data in the cloud on our secure servers. To request a copy simply click on “Generate Data Export” from the Account page and we’ll send you an email with everything you need.
Thank you for your patience reading through this and safe driving!