How does an Accountable Plan work?

IF you use personal funds to buy things for your business, or you use a personally owned auto or home office, we will never know about them...until you tell us by using an Accountable Plan! 

It is worth the time you spend on your Expense Report, it will generate many additional tax deductions...and you only do this 4 times each year.

How it works:

1- You keep a running list of things you pay for using Personal Funds, but want your business to deduct

*Pro Tip - save your receipts in one location and add them up when its time to report them.
If you want to keep digital copies rather than paper, we recommend an app called Hubdoc.
Snap photos of receipts and toss the paper.

Also, enter as many expenses as possible under 'Full Year Home Expenses" so that you don't have to add them up every quarter.

2- You track miles you put on your personal vehicle + miles for business use

*Pro Tip - keep a paper log in your vehicle and snap a photo of your Odometer on the 1st day of every quarter on Jan 1, Apr 1, Jul 1, Oct 1.

If you want to track miles with an app, download & use the free version of the Mile IQ.

3- After the end of each Quarter, we send you a request with a link to enter your expenses on your Expense Report

*Pro Tip - if you don't have any expenses or miles to report for a quarter simply mark your notification complete

4- You enter your expenses on your Expense Report by the 21st of the month

*Pro Tip - see your Expense Report for suggested expenses you can deduct

5- Once we process your report, we'll send your reimbursement amount (typically around the 25th)  

*Pro Tip - this new business tax deduction will more than compensate for your time + our fee

6- You transfer the reimbursement amount we provide from your business to your personal account 

*Pro Tip - this is the most important part: the IRS requires the money to move

*Pro Tip - you can always transfer this money right back into your business immediately after you complete the reimbursement transfer

7- You must keep receipts for all expenses your report through your Accountable Plan. 

*Pro Tip - see item 1 !

See also Do I have to keep my receipts?
See also How do S-Corps deduct home offices and personal vehicle expenses? Intro to Accountable Plans
See also Why do I need to separate my Personal activity from my Business? All about Commingling and Accountable Plans