A Complete Small Business Tax Deductions Checklist for 2023
Tax season always seems inevitably right around the corner. This time around, you’re determined to get ahead of the game and be prepared.
You’re starting to wonder if you’re missing out on any deductions you could be accounted for in your business. There could be several things you’re missing and we’ll list out a quick list of what to consider when saving receipts and updating spreadsheets.
Startup Costs
While startup costs vary based on your business and industry, there are a few you can be certain will impact you.
Equipment, insurance, rent of commercial space, fees for coworking spaces, taxes, payroll and incorporation fees are all included in these startup costs.
According to the IRS, you can elect to deduct or amortize certain business startup costs.
You can calculate your startup costs with the U.S. Small Business Administration here.
Fees, Licenses and Dues
Do you have subscriptions to online software or services or licenses to systems like Adobe?
Office Expenses
Any office furniture, printers, paper, printer ink and toner, organizers, desks, chairs, computers, pens or notebooks can be deducted as a business expense.
Travel
This could include flights, ride-share fees, dry cleaning, rental car expenses, meals and lodging. The IRS has a more extensive list of deductible business travel.
Business Meals
You’re able to deduct 50 percent of qualifying food and drink purchases.
Bete the date and location of the meal, along with the person you dined with and your business relationship with them, and the total cost of the meal. Whenever you’re working from a coffee shop or meeting a potential client for lunch, you should be snapping a photo of the receipt and adding it to your list.
Equipment and Supplies
If you are in an industry where you need equipment to do your job, any time you upgrade or buy more, you can deduct.
This could include laptops, luggage, podcasting equipment, camera or instruments. It can also cover recurring subscription fees that you have to have in order to run your business such as websites, CRMs and scheduling software.
Administrative Fees
You can deduct so many of your business expenses — including services and people whose help you pay for.
Education
Did you attend a conference or webinar this year that furthered your professional growth? Or purchase any books or subscriptions to add to your knowledge of your industry?
Phone & Internet
If you use your phone for business and personal life, you’re still able to deduct a percentage of your phone-related bills and fees. Your internet usage can also be considered in the percentage of deductions.
Advertising & Marketing
How much money of your advertising budget have you contributed to ad spend on social media? What about that client referral gift? Did you post the barcode of a Starbucks gift card on your Instagram story? Hire a designer to create a logo? Launched a website?
All of these can be considered out-of-the-box marketing expenses — and eventual deductions.
Motor Vehicle Expenses
Apps like Stride help you identify deductions, track mileage and expenses, and automate your tax filing.
Insurance
The cost of your business insurance is deductible. If you have a home office or work from home, you can even deduct your renter’s insurance costs.
A Few More Deductions to Consider
Here's a quick list of bonus deductions to consider:
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- Private health plan
- Delivery expenses
- Charitable donations
- Employee gifts
- Professional service fees
- Depreciation
- Legal and professional fees
- Moving expenses
- Property taxes
- Contracted or freelance labor
- Bank fees
- Inventory
- Energy efficient expenses
- Bad debt
- Retirement
- Salaries, wages and benefits
- Interest
- Utilities
Overwhelmed over all there is to account for in your business financials? Inspired by all of the things you could be deducting and wondering — so, what else? Our Accounting Services can help steer you in the right direction while also giving you peace of mind that you’ve identified whatever could have been missing the last time you filed your taxes.
For more than a decade, we’ve helped thousands of great leaders with their finances. Now, it’s your turn.