The main benefit of having a business is the tax write-offs. Are you familiar with what expenses that you can write off? To get an idea of the things you are able to write off, please review a Schedule C Form Profit and Loss for Business. This will give you an idea of what you can and cannot write off.
The main categories that you can write off are:
Advertising
Car and Truck Expenses
Commissions and Fees
Contract Labor
Depletion
Depreciation and Section 179 Expense Deduction
Employee Benefit Programs
Insurance
Interest (Mortgage & Other)
Legal and Professional Services
Office Expenses
Pension
Rent or Lease
Repairs and Maintenance
Supplies
Taxes and Licenses
Travel, Meals and Entertainment
Utilities
Wages
Other Miscellaneous Expenses
Having write off’s can make a huge difference when determining your profit and loss.
What techniques do you use to maintain your receipts?
What program do you use to keep track of your expenses?
If you would like to learn more about this topic, please feel free to take Profit or Loss/Human Resources & Accounting Workshop.