Keeping Records for Tax Season

Good records make tax season faster, cheaper, and less stressful. Here is how to use JobsPaid to keep everything organized throughout the year.

What Records Contractors Need

The IRS and state tax agencies require contractors to keep records of:

• All income received (paid invoices)
• Business expenses paid
• Mileage driven for business
• Materials purchased for jobs
• Equipment purchases
• Any sales tax collected

How JobsPaid Organizes Your Records

Invoices — Every invoice is timestamped, numbered, and stored permanently. Paid invoices document your income.

Expenses — Log every business purchase in Dashboard → Expenses. Scan receipts with your phone camera directly in the app — JobsPaid reads the receipt and logs the amount, vendor, and category automatically.

Tax collected — The Reports section shows a summary of all sales tax collected, by period.

Categories That Matter for Tax Deductions

When logging expenses, use these categories to make deductions clear:

• Materials — Lumber, pipe, wire, supplies used on jobs
• Tools & Equipment — Power tools, hand tools, work equipment
• Vehicle — Gas, maintenance, insurance for your work vehicle
• Insurance — Liability, workers comp
• Subcontractors — Payments to other tradespeople
• Marketing — Business cards, website, advertising

How Long to Keep Records

The IRS generally recommends keeping tax records for 3 years from the date you file. Keep records related to property (equipment, vehicles) for at least 7 years.

⚡ Tip: Export your data from JobsPaid at the end of each December and save it somewhere secure (Google Drive, email to yourself). This ensures you have a copy even if you change software.