Keeping Track Of Expenses – Melissa Cottrill, CPA

What Expenses Should I Keep Track Of During A Business Year?

Submitted by HHLOA Partner, Melissa Cottrill, CPA

Businesses can deduct a wide variety of business expenses from their taxes. To be tax-deductible, the IRS specifies that business expenses must be ordinary and necessary for the operation of your business. Tax-deductible expenses include the following:

    1. Home office – Your home office space must be used exclusively for your business.
    2. Rent
    3. Phone
    4. Utilities – Including the Internet
    5. Postage
    6. Auto expenses – Taxpayers can use the standard mileage rate (currently 62.5 cents per mile) or claim actual costs. I recommend tracking actual expenses, including gas, repairs, insurance, interest on auto loans, license fees, and mileage for the first year. Your accountant can then help you determine the most beneficial method in your situation.
    7. Business Travel
    8. Interest payments on business debts, including credit cards
    9. Office supplies & furniture (including computers & printers)
    10. Retirement contributions
    11. Advertising & promotion