Bookkeeping

Top 7 Tax Deductions You’re Probably Missing as a 1099 Contractor

Being a 1099 contractor gives you freedom—freedom to manage your schedule, choose your clients, and grow your business on your terms. But that freedom also means you’re responsible for your own taxes, and missing valuable deductions could mean overpaying the IRS.

The good news? You might be sitting on tax savings without even realizing it. At Insogna CPA, a trusted Austin, Texas CPA, we help contractors like you maximize deductions, stay compliant, and keep more of your hard-earned income. Let’s break down the top seven deductions many contractors overlook—and how you can start capturing them today.

1. Mileage and Vehicle Expenses

If you’re driving to client meetings, job sites, or running business errands, you’re probably entitled to a mileage deduction—but only if you track it properly.

You Can Deduct:

Mileage driven for business-related trips (65.5 cents per mile in 2023).
Parking fees and tolls.
Vehicle maintenance related to business use.

Quick Tip: Use apps like MileIQ to track mileage automatically. Need help applying this correctly? Our small business CPA in Austin can guide you through the process.

2. Home Office Deduction

Do you work from home? If you have a dedicated workspace used exclusively for business, you can claim the home office deduction.

You Can Deduct:

A portion of your rent or mortgage.
Utilities like electricity, water, and the internet.
Office furniture, repairs, and maintenance.

Quick Tip: The simplified method allows a flat $5 per square foot, up to $1,500. Need help figuring out the best method for your business? Our Austin accounting services can help you maximize this deduction.

3. Continuing Education and Certifications

Investing in your skills isn’t just good for business—it’s tax-deductible too.

You Can Deduct:

Online courses and professional certifications.
Industry conferences and seminars.
Books and educational materials related to your work.

Quick Tip: Save receipts and document how the course relates to your business. Our CPA firm in Austin, TX can help ensure you stay compliant while claiming these expenses.

4. Professional Tools and Equipment

Buying tools and equipment for your work? You can deduct them—but many contractors forget to.

You Can Deduct:

Laptops, software, and office equipment.
Job-specific tools and machinery.
Repairs and maintenance for business-use items.

Quick Tip: For large equipment purchases over $2,500, you may need to spread the deduction over multiple years. Let our CPA in Round Rock, TX help you determine the best tax strategy.

5. Business Meals and Networking Events

Grabbing lunch with a client or attending a business event? Some meal expenses are deductible—but the IRS has rules.

You Can Deduct:

Meals with clients, partners, or prospects for business discussions.
Meals during business-related travel.
Networking event expenses where business was discussed.

Quick Tip: Keep itemized receipts and note the business purpose to stay IRS-compliant. Our Austin CPA firm can help you understand what qualifies for a deduction.

6. Software Subscriptions and Business Tools

Do you use software to manage your business? It’s a deductible expense that often gets overlooked.

You Can Deduct:

Accounting software like QuickBooks.
Project management tools like Trello and Asana.
Creative software like Adobe Creative Cloud.

Quick Tip: Track your monthly subscription fees carefully. Our Austin, TX CPA firms help contractors manage digital expenses for maximum tax benefits.

7. Retirement Contributions

Saving for your future can also help reduce your taxable income.

You Can Deduct:

Contributions to a SEP IRA or Solo 401(k).
Traditional IRA contributions (if eligible).

Quick Tip: Contributions can lower your taxable income while building long-term wealth. Our CPA South Austin experts can help you set up the right retirement plan for your goals.

Why Work with Insogna CPA?

Navigating self-employment taxes can feel overwhelming—but you don’t have to do it alone. At Insogna CPA, one of the best CPA firms in Austin, we specialize in helping 1099 contractors:

✅ Maximize Deductions: Stop leaving money on the table.
✅ Stay IRS Compliant: Avoid penalties with proper record-keeping.
✅ Proactive Tax Planning: Plan ahead, not just during tax season.

Stop Missing Deductions—Start Saving Money Today

You work hard—don’t let the IRS take more than its fair share. Partner with Insogna CPA, your trusted Austin accounting firm, and let us help you keep more of what you earn.

👉 Contact Insogna CPA today and let us ensure you’re capturing every deduction you deserve.

Struggling with E-commerce Bookkeeping? Here’s How to Fix It.

Running an Amazon or eCommerce business is exciting until you check your books and realize… things don’t quite add up.

Maybe you’re relying on Inventory Lab or spreadsheets, assuming they’re “good enough.” But when tax season rolls around, or you try to figure out your actual profits, you’re stuck in a mess of missing expenses, confusing fees, and numbers that don’t make sense.

Sound familiar? You’re not alone. Most eCommerce sellers struggle with bookkeeping because platforms like Amazon and Shopify are great at showing you revenue but not real profits.

Here’s the good news: there’s a way to clean up your books, automate your finances, and never guess your profits again. Let’s break it down.

The Problem: Your Books Are Holding You Back

You’re selling products. Orders are rolling in. But at the end of the month, you’re not sure how much you’re actually making. Here’s why:

Amazon & Shopify reports only tell part of the story. They show revenue but don’t break down COGS, fees, refunds, and advertising costs which means you’re guessing your actual profit.
Spreadsheets and Inventory Lab don’t sync with your bank accounts. So expenses get missed, and your financials are never 100% accurate.
You’re stuck doing manual data entry. Instead of focusing on scaling your store, you’re spending hours fixing numbers or ignoring them altogether.

If your books are a mess, your taxes will be worse and your decisions are based on best guesses instead of real numbers.

This is where eCommerce sellers lose money without realizing it.

The Solution: Automate Your Bookkeeping with QuickBooks Online + A2X

The fix? Ditch the spreadsheets and let QuickBooks Online + A2X handle the hard work.

What’s A2X?

A2X automatically pulls sales data from Amazon & Shopify and syncs it to QuickBooks Online. That means:

No more manual data entry—sales, fees, and refunds are automatically categorized.
Real-time profit tracking—see your numbers accurately, not just “guesstimated.”
Cleaner books = easier tax filing—because no one likes last-minute scrambling.

Why QuickBooks Online?

QuickBooks integrates with A2X to give you a complete financial picture in one place. You can:

Track inventory & expenses automatically.
Reconcile sales and fees with your bank accounts.
See your real profit margins instantly.

This setup eliminates the most common eCommerce bookkeeping mistakes so you can focus on growing, not fixing numbers.

How Insogna CPA Makes It Easy

At Insogna CPA, a trusted CPA firm in Austin, Texas, we help eCommerce businesses like yours ditch messy spreadsheets and upgrade to a bookkeeping system that actually works.

Here’s how we help:

We set up QuickBooks Online + A2X for you, so your finances are clean and automated from day one.
We clean up past bookkeeping messes, so you’re not stuck fixing last year’s mistakes.
We provide expert tax planning, so you never overpay (or stress about IRS surprises).

We get it. You started your eCommerce business to sell great products, not to become a bookkeeping expert. That’s where we come in.

Why This Matters: More Profits, Less Stress, Zero Guesswork

When your books are dialed in, your business runs smoother. Here’s what a real accounting system can do for you:

No more surprise tax bills—everything is tracked properly, so you know what’s coming.
Instant financial clarity—know your profit margins, top expenses, and best-selling products in real time.
More time to grow—stop wasting hours on manual bookkeeping and focus on what actually moves the needle.

At Insogna CPA, one of the top CPA firms in Austin, Texas, we help Amazon and eCommerce sellers make smarter financial decisions with stress-free bookkeeping.

Let’s Fix Your Bookkeeping: Schedule a Free Consultation Today!

You didn’t launch your eCommerce business to spend nights drowning in spreadsheets. Let’s get your books set up the right way so you can focus on scaling, not sorting through transactions.

Book a consultation with Insogna CPA today, and we’ll set up your accounting system for real-time financial tracking—no more guesswork!

Behind on Your Bookkeeping? Here’s How to Catch Up Without the Stress

Falling behind on bookkeeping is more common than you think. Between managing daily operations and keeping up with clients, it’s easy to lose track of financial records. However, outdated bookkeeping can lead to costly mistakes—like missed deductions, IRS penalties, and cash flow confusion.

If your financial records feel overwhelming, you’re not alone. As a trusted Austin, Texas CPA, Insogna CPA helps businesses catch up quickly while ensuring their books stay clean and compliant. Let’s break down why it happens and how to get back on track.

The Problem: Outdated Books Cause More Than Just Stress

When bookkeeping falls behind, it creates a ripple effect of financial complications, including:

Late Tax Filings & Penalties: Unreconciled financial data often leads to missed deadlines and IRS penalties.
Missed Deductions: Without accurate records, you could overlook deductible expenses, increasing your tax liability.
Poor Cash Flow Visibility: If your financial statements are incomplete, it’s hard to understand your profitability and plan for growth.
Increased Audit Risk: Disorganized records can trigger IRS audits due to incomplete or inaccurate reporting.

If this sounds familiar, it’s time for a better approach—and a professional small business CPA in Austin can help.

The Solution: A Step-by-Step Guide to Catching Up on Bookkeeping

At Insogna CPA, we specialize in helping businesses catch up on overdue bookkeeping. Here’s our proven process to get your finances back on track:

Step 1: Gather All Financial Records

We start by collecting all essential financial documents, including:

Bank and credit card statements
Receipts and invoices
Payroll records
Loan and debt statements

Why It Matters: Missing documents lead to financial gaps. Our Austin accounting services ensure you have everything needed for a complete financial review.

Step 2: Reconcile All Bank & Credit Card Accounts

Next, we reconcile your accounts to ensure every transaction is accurately recorded:

Match bank and credit card statements with accounting records
Identify duplicate or missing transactions
Resolve discrepancies in financial reports

Why It Matters: Proper reconciliation ensures your financial data is reliable and IRS-compliant. Our CPA South Austin team makes this process stress-free.

Step 3: Identify and Categorize Missed Transactions

Missed or improperly categorized transactions can distort your financial health. We ensure:

All transactions are reviewed and categorized correctly
Business and personal expenses are separated
Income and expenses are accurately recorded

Why It Matters: Proper categorization prevents overpaying on taxes. Let our CPA in Round Rock, TX help you optimize your records for tax savings.

Step 4: Correct Errors with Adjusting Journal Entries

If errors are detected, we adjust your records to reflect true financial activity:

Adjust journal entries to fix past mistakes
Remove duplicate entries
Ensure all accounts balance correctly

Why It Matters: Clean, error-free records help avoid IRS scrutiny. As one of the best CPA firms in Austin, we ensure accuracy and compliance in every step.

Step 5: Generate Updated Financial Statements

Once reconciled, we prepare key financial reports that offer a clear picture of your business health:

Profit & Loss (P&L) Statement
Balance Sheet
Cash Flow Statement

Why It Matters: These reports provide insights into revenue, expenses, and profitability—crucial for smart financial decisions. Our Austin accounting firm delivers clarity, not just numbers.

Step 6: Implement Systems for Future Success

Catching up is just the beginning. We’ll help you stay organized moving forward:

Set up real-time tracking tools like QuickBooks Online
Provide ongoing monthly reconciliation services
Offer proactive tax planning to keep you compliant year-round

Why It Matters: Consistent bookkeeping prevents backlogs and financial stress. As a leading CPA firm in Austin, TX, we keep businesses on track.

Why Choose Insogna CPA?

At Insogna CPA, we offer more than just bookkeeping catch-up—we provide Austin accounting services designed to keep your business healthy long-term. Here’s why we’re trusted by businesses across Texas:

✅ Expert Team: Our CPA firms in Austin, TX offer advanced financial expertise tailored to small businesses.
✅ Custom Solutions: Whether you need full-service accounting or help with overdue books, we customize our approach.
✅ Proactive Planning: We help businesses stay compliant and profitable with forward-thinking strategies.

The Risks of Delaying Bookkeeping Catch-Up

Postponing your bookkeeping backlog can result in:

Tax Penalties: Missed deadlines can lead to fines and interest charges.
Missed Deductions: Incomplete records often mean lost savings opportunities.
Inaccurate Financial Decisions: Without clear financial data, you’re flying blind.

Don’t risk your business’s success. Work with a professional accounting firm in Austin like Insogna CPA today.

Take Control of Your Business Finances Today

Catching up on your bookkeeping doesn’t have to be stressful. With Insogna CPA, you get expert support from one of the top CPA firms in Austin, Texas. We simplify the process, help you avoid penalties, and ensure your financial records are audit-ready.

👉 Ready to get back on track? Contact Insogna CPA today and let our expert team help you stay compliant, maximize deductions, and simplify your financial management.

How to Choose the Right Accounting Software for Your Growing eCommerce Business

Congrats! Your business is now taking off! But with growth comes more transactions, more expenses, and (unfortunately) more accounting headaches. If you’re still tracking finances in spreadsheets or trying to DIY bookkeeping with outdated software, it’s time for an upgrade.

The right accounting software can save you hours of work, help you manage cash flow, and make tax season a breeze but only if you choose the right one. So, which one should you go with? Let’s break it down.

At Insogna CPA, a trusted CPA firm in Austin, Texas, we help small businesses and eCommerce sellers pick, set up, and optimize accounting systems that work for them. Here’s how to find the right fit.

Step 1: Figure Out What Your Business Actually Needs

Before diving into software comparisons, ask yourself: What do I need my accounting software to do? Because let’s be real: what works for a solo freelancer won’t cut it for an eCommerce seller processing hundreds of orders a day.

Here’s a quick cheat sheet based on your business type:

✔ Freelancers & Service-Based Businesses: Need invoicing, expense tracking, and simple tax reporting.
✔ E-commerce Sellers (Amazon, Shopify, Etsy): Must have inventory tracking, multi-channel sales reports, and automated sales tax calculations.
✔ Manufacturing & Wholesale: Look for job costing, raw materials tracking, and supply chain management.
✔ Growing Companies with Employees: Need payroll, cash flow forecasting, and real-time financial analytics.

Not sure what features you need? A quick chat with an Austin tax accountant can help you figure out the best setup for your business.

Step 2: Compare the Best Accounting Software Options

Now that you know what you need, let’s look at the most popular accounting tools and their pros and cons.

1. QuickBooks Online: The Gold Standard for Small Business

Best for: Small businesses, freelancers, service-based businesses
Key Features: Invoicing, bank reconciliation, expense tracking, payroll
Pros: Easy to use, integrates with hundreds of apps, cloud-based
Cons: Can get pricey as you scale, not ideal for complex inventory

Perfect for businesses that need an all-in-one, easy-to-use accounting tool. Need help setting up QuickBooks in Austin? Insogna CPA has your back!

2. Xero – Best for Startups & Online Businesses

Best for: Tech startups, digital businesses, service providers
Key Features: Automated bank feeds, invoicing, project tracking
Pros: More affordable than QuickBooks, great for international businesses
Cons: Learning curve, fewer integrations than QuickBooks

Xero is a great pick for tech-savvy entrepreneurs who want automation at a lower cost.

3. NetSuite – For Businesses That Need All the Bells & Whistles

Best for: Large businesses, manufacturers, eCommerce sellers scaling fast
Key Features: ERP system, inventory management, automated workflows
Pros: Covers accounting, CRM, and inventory in one platform
Cons: Expensive, requires setup and training

If your business is growing rapidly and needs advanced tracking, NetSuite is worth considering.

4. Wave – The Free Option for Solopreneurs

Best for: Freelancers, consultants, solopreneurs
Key Features: Free invoicing, expense tracking, and reporting
Pros: 100% free, simple to use
Cons: No advanced features, limited customer support

Wave is a great starter option, but most businesses will outgrow it quickly.

Step 3: Pick Software That Works for Your Industry

Every industry has unique accounting challenges, so your software needs to handle them.

✔ E-commerce & Retail: Shopify, Amazon, and Etsy sellers should use QuickBooks, NetSuite, or Xero with integrations like A2X for automated transaction tracking.
✔ Manufacturing & Wholesale: You’ll need inventory management, job costing, and supplier tracking—NetSuite or QuickBooks Enterprise can help.
✔ Service-Based Businesses: If your income is client-based, Xero or QuickBooks will likely be your best bet.

Need help integrating your accounting software with your other business tools? A CPA in Austin, Texas can set everything up so your numbers are always accurate and up to date.

Step 4: Real-Time Accounting = Smarter Business Decisions

Choosing the right accounting software isn’t just about tracking income and expenses, it’s about having instant access to your finances so you can make better decisions.

Here’s why real-time accounting is a game changer:

✔ Know your cash flow at all times (no more guessing if you can afford that new hire).
✔ Make tax season stress-free (because everything is already organized).
✔ Plan for growth with accurate profit and loss reporting.
✔ Stay compliant with automated sales tax and payroll reporting.

When your accounting is dialed in, you can focus on growing your business. A small business CPA in Austin can help you set up automated accounting that works for you.

Step 5: Get Expert Help Setting Up Your Accounting Software

Picking the right software is just the first step. Setting it up properly is what makes the real difference.

At Insogna CPA, one of the most trusted CPA firms in Austin, Texas, we help businesses:
✔ Choose the right software based on industry & business needs
✔ Automate bookkeeping so financial tracking is effortless
✔ Optimize accounting workflows for tax planning & cash flow management

Need help setting up your accounting system? Let Insogna CPA handle it for you. Schedule a free consultation today!

Top 5 Signs It’s Time to Upgrade from a Bookkeeper to a CPA Firm

Managing your business finances starts with good bookkeeping—but as your company grows, so do your financial needs. If you’re only getting basic transaction tracking without strategic insights, you may be missing opportunities to lower your tax liability, optimize cash flow, and prepare for future growth.

Here are five clear signs it’s time to move from a bookkeeper to a professional CPA firm in Austin, Texas for more proactive financial management.

1. You’re Only Getting Basic Data Entry—Not Strategic Financial Advice

A bookkeeper’s primary role is recording transactions, but growing businesses need more than just historical data. If you’re not getting strategic insights to help you make informed financial decisions, it’s time to upgrade.