Recording Your First Transaction

Let's walk through recording your first business expense in RightOffs. You can add transactions manually or automatically through bank sync.

Manual Transaction Entry

Step 1: Access Manual Transactions

Navigate to Settings > Manual Transactions from the sidebar.

Step 2: Enter Transaction Details

Fill in the following information:

• Date: When the transaction occurred
• Amount: The expense amount (automatically formatted)
• Description: What the expense was for
• Category: Select from IRS-approved categories

Step 3: Categorize for Tax Deductions

Choose the appropriate IRS Schedule C category:

• Advertising: Social media ads, Google Ads, flyers, business cards
• Office Expense: Paper, pens, printer ink, office supplies under $2,500
• Travel: Business trips, mileage at $0.67/mile (2024 rate), hotels, airfare
• Meals: Client dinners, team lunches (50% deductible per IRS rules)
• Other Expenses: SaaS tools, cloud services not fitting other categories
• Legal and Professional Services: Legal, accounting, consulting fees

Source: IRS Schedule C instructions require expenses to be "ordinary and necessary" for your business.

Step 4: Add Receipt (Optional)

Click "Attach Receipt" to upload:

• Take a photo with your phone
• Upload an existing image
• Drag and drop files

Step 5: Mark as Write-Off

Toggle the "Tax Deductible" switch if this is a business expense you plan to deduct.

Automatic Transaction Import

If you've connected a bank account:

1. Transactions appear automatically
2. Review and categorize each one
3. Mark business expenses as write-offs
4. Add notes for future reference

Pro Tips

• Be Consistent: Use the same categories for similar expenses
• Add Notes: Include client names or project details
• Upload Receipts: The IRS requires receipts for expenses over $75
• Review Regularly: Check transactions weekly to stay organized

Next Steps

• Understanding Tax Categories
• Connecting Your Bank Account
• Generating Reports