If you're serious about protecting your business from tax penalties, audits, and unnecessary stress—this is your playbook. Tracking your expenses accurately isn’t just a “nice to have”—it’s required. And relying on your bank statement alone? That’s where most businesses go wrong.
When the IRS audits you, they don’t just want to see where the money came from and where it went. They want:
Your bank statement won’t give them that. And if that's all you have—you're at risk of the deduction being denied.
You don’t need to spend hours every week in your books. But you do need a system. Set a recurring time each week (we recommend Fridays) to:
15 minutes per week is enough to build an audit-ready trail all year long. Do this, and future-you will thank you.
Here are 10 categories every business should have set up (and consistently use):
These should align with your Chart of Accounts in Zoho Books or QuickBooks Online.
We strongly recommend all Gbooks members use Zoho Expense to simplify compliance:
Gbooks members can reach out any time for help setting up Zoho Expense, mapping categories, or auditing prior years of expenses. Email businessservices@gbooks.works and we’ll walk you through it.
Q: Is my bank statement enough to back up a tax deduction?
A: No. You need the receipt, business purpose, date, and vendor. Bank statements only show part of the picture.
Q: What’s the best way to stay organized for tax time?
A: Spend 15 minutes each week using Zoho Expense to review, categorize, and attach receipts. That’s it.
Q: Do I need different categories for personal vs business?
A: Yes. Keep your business expenses 100% separate, and never categorize personal expenses inside your business books.