There are many expenses that businesses have to contend with. These can range from the cost of goods sold to employee salaries and everything in between.
When it comes to taxes, it is important for business owners to be aware of all the deductions they are entitled to.
In this blog post, we will discuss the top five business expenses according to an accountant.
Here is the general breakdown of business expenses by category.
1. Employee Expenses and Benefits
Employee expenses and benefits can include a lot of different items. This can include their salary, bonuses, commission, and even the cost of their health insurance.
If you have employees, it is important to make sure that you are deducting all of these expenses from your taxes.
Similarly, when you’re spending money for your team through training or other professional development, that is also a deductible expense.
2. Marketing
Marketing is always a big investment for businesses that ensures ROI.
You want to make sure you are dedicating enough of your budget to marketing so that you can reach your target customer base and continue to grow. This can include everything from online ads to hiring a PR firm.
So, make sure you are taking all of your marketing expenses into account when doing your taxes.
3. Professional Services
When you are running a business, there are a lot of professional services that you will need to utilise. This can include everything from accounting to legal help.
Such expenses can add up quickly, but they are all deductible when it comes to your taxes.
Make sure you are keeping track of all of the professional services you use so that you can deduct them come tax time.
4. Office Expenses
Of course, you also have to think about the costs associated with running your office. This can include everything from rent and utilities to office supplies and furniture.
If you have a home office, you can even deduct a portion of your rent or mortgage from your taxes. Keep track of all of your office expenses so that you can deduct them when doing your taxes.
Similarly, if your business demands travel, those expenses – airfare, hotels, car rentals, and meals can all be deducted as business expenses.
When you are keeping track of your expenses, make sure to keep all of your receipts and documentation so that you can easily deduct them come tax time.
5. Miscellaneous Expenses
There are also a lot of miscellaneous expenses that businesses have to contend with. This can include everything from business insurance to permits and licences.
If you have any expenses that don’t seem to fit into any other category, make sure to keep track of them so that you can deduct them when doing your taxes. Repairs and maintenance, ongoing service fees (bank fees), commissions, etc are to name a few.
By keeping track of all of your business expenses, you can ensure that you are getting the most deductions come tax time.
Be sure to work with your accountant to make sure that you are taking advantage of all of the deductions you are entitled to. By doing so, you can save your business a lot of money come tax time.
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