Ten Things You Didn’t Know You Could Write Off

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If you’re a small business owner and dread dealing with taxes, know you are not alone!

With it, comes with the worry of audits, fees, and money owed. But while it can be stressful, it does come with benefits for business owners - like writing off all those business expenses to help minimize your tax bill. Let’s go over some of them! 


RENT 

Most businesses have to pay rent of some sort. Usually, businesses are renting buildings out like storefronts, warehouses, office spaces, and more. These all cost money in the way of rent. Luckily, business owners can write off the rent for their business on their taxes! 

UTILITIES

Along with rent, you are going to have to pay the utility costs for where your business is located. Electricity, water, and internet all cost extra money on top of rent. But not to worry, these can be written off too! 

YOUR HOME OFFICE

Maybe you don’t rent a separate building for your business but you do have a home office. There is a tax deduction for that too! How much you can deduct depends on how large your home office is. You can calculate the deduction based off of the proportion of your office space compared to the total square footage and utility bills of your house. Have these numbers ready for your tax preparer when filing!

VEHICLE EXPENSES

If you are driving for work, you can too deduct this off your expenses. If your vehicle is both for business and personal life, just make sure to log your vehicle costs (gas, repairs, maintenance) and the mileage for both categories. 


TRAVEL

For some businesses, work requires the owner or employees to travel. If you or your employees are traveling out of town, you can deduct both your transportation and lodging expenses. As long as the trip truly is for business purposes of course!

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MEALS & FOOD

Meals and food that are related to your business are a few of those partially detectable expenses. Most of your meal expenses are deductible to up to 50%. This includes travel meals.


INSURANCE

Insurance is a must have in business and luckily it is also something you can deduct on your taxes. Items like your business insurance, liability coverage, and your employees’ insurance can be a great deductible for you and help save on taxes. 

ADVERTISING SPENDING

Didn’t think you could write off the money you use to advertise your business?  Well, you can! Types of advertising you can write off include social media, newspapers, digital ads, email marketing, and more. 


EDUCATION

Continuing education and personal development can be definitely expensive. Which makes it daunting and scary to invest in. Even though it is needed to advance your business. Thankfully, you can write off education that is related to your business - like conference tickets and online courses.


CHARITABLE DONATIONS

Just like on your personal taxes, you can deduct charitable donations from your business taxes as well. Just make sure you have the receipts to prove it!

It Doesn’t Have to Be Scary 

Taxes don’t have to be scary. Keep track of your deductions and don’t hesitate to reach out to a professional if you need some assistance.

READ MORE ABOUT  ADRIENNE  (AND ALL OUR AMAZING CONTRIBUTORS) BY HEADING TO  THE & GALS  SECTION

READ MORE ABOUT ADRIENNE (AND ALL OUR AMAZING CONTRIBUTORS) BY HEADING TO THE & GALS SECTION

WRITTEN BY ADRIENNE ZIMBRO: ACCOUNTANT, CONTENT CREATOR, & ENCOURAGER

Bookkeeping Basics for the #MomBoss

Mom life is extremely busy - right?! Between taking care of the kids and the normal household necessities, you barely have any time for yourself. Add running a business on top of that, and the time you have available has pretty much gone to zero. Thankfully, some things in life can be made easier in order to save you time. One of these things is bookkeeping for your business.

We know that learning a new skill also adds to the amount of time you need in a day, so instead of having you take a full course on accounting, we have prepared some quick tips on bookkeeping basics for the #MomBoss. 

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Choose a Bookkeeping Software 

One of the very first steps for getting your bookkeeping going is a good software. You will want to choose an easy-to-use system that allows you to code income and expenses, reconcile your accounts, and provide you with monthly reports. If you are just starting your business, check out Wave. It is free and pretty intuitive to use for service-based industries. 

As your business begins to grow, you will want to upgrade to more robust (but still super user-friendly… we promise!) accounting software. Quickbooks Online is our go-to recommendation. They offer a variety of plans so you can pick which one is right for your company. It costs a monthly subscription fee but is SO worth it offering customized reports, sale tax and 1099 tracking, and more. These are features you will want available as you grow that business!

Separate Your Bank Accounts 

GOLDEN RULE! No matter how big your business is, you should always separate your business bank account from your personal bank account. Even if you don’t use a bookkeeping software, at the very least you will have a separate register of all business-related transactions in one place. 

We recommended having a dedicated business checking account from the very beginning. And if your business is already up and running, it isn’t too late to separate your finances now. If you are a sole proprietor, you can even just open up a new checking account under your own name and use it strictly for your business finances. 

All business related income and expenses should flow through this account, and this account only!

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Keep Your Receipts Digitally

Filing receipts is probably the most yawn-inducing aspect of bookkeeping - but necessary for tax purposes. That’s why we advise taking it digital. Keeping your receipts in a physical file can get really messy and disorganized. Instead, snap a photo on your phone or save the PDF attachment emailed to you, and then simply upload to your preferred cloud storage folder.

Not sure which platform to choose? Take a look at Google Drive or Dropbox. You may be already using one of these for your business anyways! We like to file receipts by year and month.

Block out Bookkeeping Time 

Has anyone else heard of block scheduling? We love it as it helps us focus on specific tasks at a designated time - like taking care of the bookkeeping tasks. 

Set aside one time each month to work on coding transactions, reconciling accounts, reviewing reports, and filing receipts. You will feel at ease knowing that your one-hour block of time has saved you that headache during tax time.

Keep it Simple

The biggest advise we can give is to keep it simple. Bookkeeping may seem like it is super complicated, but it doesn’t have to be! The simpler the system you are using, the more likely you are to keep it up long-term.

Automating tasks like invoice follow-ups, letting clients pay through invoices directly, and using the QuickBooks Online bank rules to automatically code recurring expenses can save you even more time to spend on other areas of the business. 

By utilizing these tips, you will have your business bookkeeping flowing smoothly in no time. And maybe even squeeze in some extra mom time!


READ MORE ABOUT  ADRIENNE  (AND ALL OUR AMAZING CONTRIBUTORS) BY HEADING TO  THE & GALS  SECTION

READ MORE ABOUT ADRIENNE (AND ALL OUR AMAZING CONTRIBUTORS) BY HEADING TO THE & GALS SECTION

WRITTEN BY ADRIENNE ZIMBRO: ACCOUNTANT, CONTENT CREATOR, & ENCOURAGER