I filed my Schedule C taxes for my small baking business this past week. This is my fourth year filing taxes for my business and every year I learn about new things that can be written off that I would have never thought of. So, here we are, FIVE years into my business and sharing FIVE things you want to make sure you write-off that you may not have thought about! Please note I am a professional BAKER and MARKETER, NOT a tax professional. So, of course, always defer to what your tax professional advises you of if you have questions!
1. Phone Bill
Are you reading this educational blog FOR YOUR BUSINESS on your phone right now? Clock it y’all! Over the years the percentage of my phone bill that I’ve written off has only gone up. Between social media time, research, posting, taking pictures, emailing – that is all a business expense! And guess what…that Apple Watch, iPad or any other electronic device that you may have gotten this past year and use for your business? WRITE IT OFF!
2. Apps and Software
Canva Pro for design, Color Story for editing my photos, iCloud upgrade to store all of my photos, Movavi for editing my reels. There are so many apps that we tend to purchase and then forget when they billed or they silently run month to month behind the scenes. All helping with our business – track them and WRITE THEM OFF!
3. Quickbooks & Previous Tax Expense
I can not stress enough what a great decision it was for my sanity and business to get Quickbooks Self-Employed for my business. It tracks my mileage, syncs with my bank account and credit card and makes it so dang easy come tax season. (If you want to try it, you can get 50% off your first 6 months here). The monthly fee here? TAX DEDUCTION. And whether you’re using an online platform or seeing a tax professional in person to file for you, remember that expense is a TAX DEDUCTION as well!!
4. Service Fees
You know how we all cringe every time a service provider like Paypal or Venmo says “now there’s fees!” Well, it still sucks but alas, they have to make money. And for you, you can write these fees off. Luckily, most of the platforms make it pretty easy to pull these reports when it’s time for taxes but make sure you add it to the checklist!
5. Meals Chatting The Biz
If you don’t talk about next steps in your business, what’s on the horizon, or post a story or two on date night…start. And don’t hesitate going to lunch with cookie buddies, grabbing coffee with another small business owner, or when a cookie class may be right around meal time. These are all part of growing your business! WRITE IT OFF.
Additional thoughts
There are so many additional things to think about when it comes to taxes. Here is a list of just some of the things to think about, research, and ask your tax expert about: home office, electricity associated with your business, if public on social media (ie: stories, tutorials) then examine things like nail expenses, makeup, clothing that you wear and promote, large purchases like mixers and new ovens may be handled best as depreciating assets, or if you hired anyone to help you in the past year, their wages are a write-off!
I hope some of these items help you during what can be a stressful time for so many!