What Expenses Can Small Businesses Write Off? Your Complete Tax Deduction Guide

Keywords: small business tax deductions, what can I write off, business expenses

Running a small business comes with a lot of moving parts—but tax season doesn’t have to be overwhelming. One of the best ways to reduce your tax liability is by understanding what business expenses you can write off.

As an experienced accounting firm offering tax filing, fractional CFO services, and financial modeling support, we’ve created this guide to help you navigate your small business tax deductions confidently.

What Are Business Expenses?

Business expenses are ordinary and necessary costs directly related to running your business. The IRS allows you to deduct these from your taxable income—reducing what you owe and keeping more money in your business.

Common Small Business Tax Deductions

Here’s a breakdown of what you may be able to write off, whether you’re a freelancer, startup, or growing business.

1. Office and Rent Expenses

• Rent for office or co-working space
  
• Home office deduction (based on exclusive business use)
  
• Office supplies like desks, chairs, and tech
  

💡 Need help tracking this correctly? Our accounting services include full expense categorization and reporting.

2. Utilities and Internet

• Internet, phone, and mobile business usage
  
• Electricity and water for commercial spaces
  

3. Software and Subscriptions

• Accounting platforms, CRMs, and project management tools
  
• Email marketing software, storage solutions, etc.
  

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4. Payroll and Contractor Costs

• Employee salaries and wages
  
• 1099 contractor payments
  
• Employer-sponsored benefits (healthcare, 401(k))
  

📊 From payroll setup to contractor compliance, our fractional CFO services ensure smooth operations and accurate reporting.

5. Professional Services

• Legal, consulting, and of course—your accountant
  
• Business coaching or advisory services
  

💼 Talk to our team about tax filing and strategic accounting support tailored to your business stage.

6. Travel and Meals

• Business travel (flights, hotels, rental cars)
  
• 50% of meals for business purposes
  

7. Marketing and Advertising

• Website design and hosting
  
• Paid advertising and social media promotions
  
• Business cards, branded materials, etc.
  

📈 We help forecast your growth through financial modeling and budgeting tools.

8. Vehicle and Mileage

• Standard mileage deduction
  
• Actual expenses (fuel, repairs, maintenance)
  

9. Education and Training

• Industry-related courses and certifications
  
• Conferences, webinars, or trade shows
  

10. Depreciation of Equipment

• Computers, cameras, furniture, and tools used long-term
  
• Eligible for Section 179 or MACRS depreciation
  

⚙️ Unsure what qualifies? Our accounting experts will guide you through asset depreciation and compliance.

Expenses You Can’t Write Off

The IRS draws a clear line between business and personal use. Here are some items you can’t deduct:

• Personal expenses
  
• Political contributions
  
• Fines, penalties, or club memberships
  
• Commuting to and from work
  

Keep Clean Records to Maximize Your Deductions

Good bookkeeping is key. You’ll need:

• Receipts and invoices
  
• Bank and credit card statements
  
• Mileage logs, if applicable
  

📚 Our accounting services include monthly reconciliations and real-time financial tracking, so you’re always audit-ready.

Need Help Navigating Small Business Tax Deductions?

Whether you’re prepping for tax season or need ongoing strategic support, we’ve got your back. Our team helps small businesses with:

• ✅ Tax filing & compliance
  
• ✅ Bookkeeping & accounting
  
• ✅ Fractional CFO services
  
• ✅ Financial modeling & forecasting
  

👉 Contact us today to schedule your free consultation and start maximizing your deductions the right way.

Final Thoughts

Understanding what you can write off is essential to your business’s financial health. Don’t leave money on the table. From routine expenses to growth-related costs, the right deductions can make a big difference.

We’re more than accountants—we’re your financial partners.