For any taxes due on personal expenses, deduct the total on form 4120NR, and file it with your personal income tax return. When you file, you can deduct your business expenses from your personal return, not just your business income.
If you are self-employed, you can use accounting software to keep your books, or you can use your own spreadsheets. Open-source accounting software lets you download the source code for free and customize it to suit your needs, and you can download pre-configured templates from software websites. Other software that is available is called W-2 software, which uses an Excel-like format to keep track of your income.
Some businesses track expenses with a ledger and/or a spreadsheet. Some use your accounting software to help keep track of your expenses, or use a third-party accounting software. Some use an accounting software package with online tools to help you keep track of bills.
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