Koody Launches Business Workspace for Simplified Bookkeeping and Tax Prep

Koody, an AI-driven financial management platform, has launched a dedicated Business workspace to help sole proprietors streamline their bookkeeping and tax preparation processes. This new feature aims to provide a comprehensive solution for small business owners, offering automated categorization of income and expenses, detailed profit and loss reports, and tools for preparing Schedule C records.

With the Business workspace, users can auto-categorize their income and expenses, track their business profit, and prepare Schedule C records for tax time. The new workspace brings together existing business tools in a dedicated space, allowing customers to focus on their business while retaining the option to manage personal finances in the same application. Customers can choose to use Koody exclusively for business, manage personal and business spending from one bank account, or keep separate personal and business accounts on one platform.

To get started, users can upload PDF or CSV bank and credit card statements to Koody. The platform extracts transactions, cleans up descriptions, and automatically categorizes income and expenses. Koody's built-in business categories cover a wide range of expenses, including revenue, rent, contract labor, software, and supplies. Users can modify these categories and ask Koody to remember their choices for future statement uploads.

For those who cannot connect their bank accounts to accounting software, Koody offers a solution. Users can download statements from their bank or credit union and upload them directly to the platform. This feature ensures that business owners can manage their finances without the need to change banks or establish live bank connections. The Business workspace also supports users who are keeping up with their monthly expenses and those catching up on months of unfinished bookkeeping. Cash payments and other transactions missing from a statement can be added manually.

The Business workspace provides several key features, including business cash flow, profit and loss reports, and Schedule C preparation. The Business cash flow feature brings together income, expenses, account balances, and spending by category, allowing owners to see when customer payments arrive, where the money goes, and how their cash flow changes from week to week. This feature can help owners identify trends and make informed decisions about their business operations.

Profit and loss reports are another important feature, as they are generated from categorized business records. Users can choose a month, quarter, year, or custom reporting period and compare revenue, expenses, and net profit with an earlier period. This comparison can be particularly useful for owners whose sales are growing, as it allows them to assess whether costs are growing faster and use that information to review prices, purchases, or operating expenses.

For sole proprietors, Koody’s Schedule C preparation worksheet organizes business income and expenses against the relevant Schedule C lines. Users can review the amounts, address items needing attention, and share the worksheet with their tax preparer. Tax calculation and filing are not included in this release, but the worksheet serves as a valuable tool for tax preparation.

Koody also allows users to keep personal and business finances separate, even when payments come from the same bank account. A purchase containing both business supplies and household items can be split so that each workspace includes the appropriate amount. Additionally, users can attach receipts, invoices, and notes to transactions throughout the year. When an accountant requests records, users can download their profit and loss report and Schedule C worksheet as CSV or Excel files. Underlying transaction records can be exported as CSV, Excel, or JSON and shared with an accountant.