Deductible Business Expenses: Tell Me More
What can I deduct as a business expense?
We often field calls from our clients asking about which purchases they can deduct as a business expense. What about that dinner with a potential client or the laptop you purchases for your graphic designer? The flight to attend a conference, tickets you purchased to take a customer to a baseball game- the list goes on and on.
The IRS states that an expense can be deductible if it is both necessary and ordinary. If you are the DIY type- here’s a great list of things that can be deducted in your small business. And here is another pdf directly from the IRS. We get that this might be a lot to sift through- which is why we love that our clients call us and ask. We are more than happy to answer any questions you have regarding your small business.
To help keep track of your expenses, we recommend you also implement an accounting system for your small business. The use of an accounting system will keep you organized and prepared. You can store receipts within the system, classify them properly and have everything in one place when it comes time to do your taxes. Our recommended accounting system of choice is Xero. Check out this link to learn more about Xero. We use Xero for our own firm and for many of our clients. We love having a software that is intuitive, up-to-date, and available at the tap of your screen or click of a mouse.
If you’d like to learn more about Xero or how it can help you, don’t hesitate to reach out, we’d love to help you along the way!