If you’re new to being a home business owner, you may be wondering about the types of things that you can record as an expense in your business for tax purposes. While I am not a *tax professional, I am a fellow business owner and wanted to share some of those basic expenses with you so that you have a better idea of what to track.
Office expenses—There are the basics like your computer or tablet, printer and paper, but don’t forget things like postage, thank you cards and software/hardware for your computer.
Business meetings—This includes meeting a potential client for coffee, as well as that business summit that you flew to another state to attend.
Vehicle expenses—Things like gas and car insurance may be deducted.
Travel—You may also be able to claim mileage for those car trips as well as airfare and accommodations.
Professional services—Did you hire someone to create your website? Are you working with a business coach? Maybe you have an accountant. They are all considered expenses.
Education and training—If you bought a book or paid to attend an online telesummit in order to advance your business, it counts as an expense. This also includes subscriptions for monthly business membership programs.
Advertising and Marketing—These are things such as business cards and ads, whether they’re in print or online.
Utilities—Depending upon your home office setup, you may be able to deduct all or part of your utility bills, such as internet, electric, gas and phone for your home office space.
Other—You may also be eligible to deduct things like business insurance, bank fees and any subcontractors you may work with.
An important thing to remember when it comes to tracking your expenses is to keep your receipts. There are many different kinds of software and apps out there that can help you track your expenses online as well as scan in your receipts. My favorite for tracking expenses, income and invoicing is Freshbooks.
*Note: I am not a tax professional. Please check with your accountant, CPA or the IRS for more details as things vary depending upon where you live and the kind of business that you run.
Alicia Jay is a virtual assistant mentor who shares tips, inspiration and resources, encouraging women to follow their dreams of having a business that works around their lives—not the other way around. You can find more from her at newVAadvice.com.
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