How To Categorize Expenses For Small Business

How To Categorize Expenses For Small Business: 9 Expenses You Can Claim Back

The goal of this article is to make it clear about how to categorize expenses for small business.

If you run a small business, keeping track of costs is an important aspect of the business

Tracking costs are essential to keep track of the money you spend to keep your business moving.

From salaries and travel expenses to the costs of automobiles and equipment, small business owners must maintain accurate and up-to-date records that arise during and after the tax season.

This will help you to save more money in the long-run.

Here is the low-down on how to categorize expenses for small business:


1) Memberships and Subscriptions

In order to keep up with industry trends and business news, business owners often subscribe quarterly or annual subscriptions to a variety of commercial publications, trade journals and membership for professional associations.

Rates for local business communities are also calculated as membership costs.

Nowadays, you can claim back software subscriptions as well.


2) Marketing and Advertising

Running a successful small business means working to attract new customers and retain
existing customers.

Marketing or advertising costs help promote promotional activities.

For example, the introduction of products, coupons, discounts, print and web advertising, Facebook ads and commercial locations.


3) Rent and Utilities

Whether space is rented or an office is used in the home, the main cost can go into your accounts when you learn how to categorize expenses for small business.

In addition to renting, business owners include costs such as telephone and internet services, water and electricity.


4) Equipment and Supplies

Whether your company offers a service or products, you need another set of unique elements
to serve customers efficiently and effectively.

Some general items include computers, printers, fax machines, pens, pencils, folders and fasteners.


5) Travel and Trade Shows

Want to go to the next big summit in Dubai, Amsterdam, London or Los Angeles?…

Staying informed about business and industry trends means that doing more than reading

For many self employed entreprenuers, it also means travelling to trade fairs to get practical experience with new products, rubbing shoulders with other members and meeting influential people in the industry.

Truthfully, this is invaluable.

The costs of traveling to these shows include hotel rates, transportation and event registration.


6) Mileage

Mileage travel costs may include your personal automobile used for commercial purposes.


7) Salaries and Insurance

As the owner of a small business, you must account for the salaries and wages of your employees, as well as insurance and retirement benefits.

Salaries can also include special performance and holiday bonuses that are provided to employees.


8) Entertainment and Gifts

Small business owners spend money on lunches and dinners for clients and employees on a
regular basis, as well as on holiday gifts, cards and gifts of appreciation to the customer.

Parties and business trips also fall into this category.

The exact percentage you are allowed to claim on entertainment depends on where your business is located.


9) Consultant Fees

Accounting fees, attorney fees and even business coaching fees can be categorized in the
accounts of many business owners.

As a business owner, you cannot do everything alone.

So outside sources often provide help in potential areas, including tracking money spent and money coming in, business laws and even encouraging how to push businesses to the next level.



Taxes on self-employment are the responsibility to pay means that small business owners must be very thoughtful throughout the year.

This is why learning how to categorize expenses for small business can really help you to save time and money.

In summary, most of the time, many of the costs paid by small business owners, such as rent, travel and even membership fees, can be categorized during tax time to reduce taxes on self

Faithful in your success! 


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