Sole Proprietor- Food Delivery (FAVOR)

[strongac]

What is the best way to track food deliveries and amounts paid when there is instant pay options and weekly direct deposits?

[RSUMan]

The best way to track your revenue and expenses for your food delivery business is to set a monthly "board" meeting (for example, third Sunday of the month 3 PM to 5 PM).

Tally your deposits and your expenses at that meeting for the prior month.

I assume the Favor app tracks your mileage.  Your mileage expense will be crucial in reducing your 15.3% Self Employment Tax (this is the Social Security and Medicare tax that self employed taxpayers pay).

If the Favor app does not track your mileage, you will need to track it with another app or by keeping a log.

Check with Favor to see if they will issue a Form 1099 NEC or a Form 1099 K at the end of the year; those totals should equal the deposits that you have been tracking during the year.