Running a small business is an incredible feat but when expenses start piling up, it can cause a real sense of overwhelm. The flip side of those growing expenses is that many of them are claimable tax deductions! Unfortunately, I see a lot of business owners often miss out on these deductions – typically because they aren’t aware they ARE deductions.
Don’t forget these often-overlooked tax deductions that can save you money come tax time.
Those recurring subscription fees add up! And guess what? They’re high on the list of forgotten expense claims. Take a moment to audit your subscriptions and make sure you’ve got them covered.
Simplify the process by sorting your subscriptions into types. For example:
- Website: Shopify, WooCommerce, Plug-Ins like inventory management
- Marketing: Klaviyo, ActiveCampaign, Sked Social, Planoly, Canva, Stock Photography
- Operations: Slack, Trello, Zoom, GMail, Dropbox, Asana, Zapier
- Financial: Xero, Quickbooks, HubDoc, App Plug-Ins, Square
I guarantee you’ll find a stray plug-in or unused tool you can add to your expenses and, even better, cancel unused, unwanted double ups to decrease your spending next financial year.
Payment Provider Fees
Did you know services like PayPal, Square, Stripe and more, collect fees every time you get paid? Those fees are tax deductible! While they may not always impact the bottom line, unless you capture them, your sales figures and often GST on your BAS will be incorrect.
Don’t forget bank fees and charges for each account you hold for your business.
If you’re using a sales platform like Shopify, they too take a cut every time you get a payout, so yup, those fees are yours for the claiming as well!
It may seem counter-intuitive to split hairs over $2 here and there but trust me, they add up over time! And if you automate it where possible, and keep it up to date regularly, it only takes a few minutes. Maximise your deductions come tax season and claim each and every one of them.
Alternative Payment Methods
In addition to bank fees and services like PayPal, there are alternative payment methods that can be used in your small business. These alternative payment methods can include mobile payments through apps like AfterPay, LayBuy and Apple Pay.
Make sure you have included any business expenses you’ve paid through your personal accounts because your bookkeeper won’t be able to see them to chase you up!
There are a variety of insurance options available to small business owners, including general liability insurance, property insurance, and workers’ compensation insurance. The cost of insurance premiums relating to your business is an expense you can claim. If you are working from home, a portion of your home and contents insurance might also be tax deductible, so it’s worth speaking with your accountant to clarify your possible deductions.
Website and Email Costs
When it comes to online expenses, website and email costs are commonly overlooked – mainly because they’re some of the first costs you set up and they’re linked to a personal or old bank account. These expenses can include website hosting fees, domain registration fees, and email marketing platforms. The good news is that these costs are generally tax deductible – right from the get go!
It’s important to keep track of these expenses throughout the year, so you’re not scrambling at tax time to tally up your claim.
Bookkeeping and Accounting Fees
Just like any other service provider, bookkeeping and accounting fees are tax deductible. You wouldn’t believe how often these expenses are missed! Not only are the costs claimable, but you’ll also reap the benefits in your business. We keep your finances and tax liabilities in check while giving you the top-notch advice you need to avoid costly mistakes – like missing expenses, ha!
Small business tax deductions can be a lifesaver when it comes to offsetting expenses and maximising tax benefits. Remember to keep accurate records, including receipts and invoices to keep everything above board.
You Might Also Enjoy:
- The EOFY Checklist For Small Business Owners
- Here’s Why Your EOFY Stocktake Is A Good Thing
- My Top Tips For A Smooth EOFY
- Do Your Tax Invoices Say the Right Things? Blog or the Podcast