“Write-offs”—also referred to as “deductions” or “business expenses”—are tax breaks that help you lower your tax bill. If you’re self-employed, you almost certainly have write-offs.

The purchases that you’re making to keep your business running smoothly are considered “business expenses.” You can use those business expenses to reduce the amount of income that you’ll pay taxes on.

Here’s how it works: When you file your taxes, you’ll report all of your forms of income—like W-2 wages, unemployment, and lots of others—on your tax return, including your business income. You won’t be taxed on the total amount of business income that you received throughout the year; you’ll actually only be taxed on your profit.

For example: If your painting business makes $10,000 in a given year, but you spend $4,000 on paint, canvases, and advertising, then your profit is only $6,000. That $6,000 is what you’ll be taxed on.

That’s why it’s important to keep track of all of your business expenses; every time you lose track of an expense, you miss out on a chance to reduce your tax bill!

Tracking expenses can sound daunting, but Cruise will help you. Keeping updated expense records through your Cruise account is a great way to keep your expense documentation IRS-ready.

Any time you record a business expense, your profit will decrease, and so will your tax bill. You can quickly view your current tax bill in the Taxes section, as well as your business profit, in the Dashboard section.