Missed Business Deductions for Service-Based Businesses
This is a common and costly bookkeeping error. Partnering with a professional bookkeeper will give your business the opportunity to properly identify and record your business expenses.
Managing deductions for a product-based business seems pretty basic.
You report the physical items you purchase to put into your product(s):
- Raw Materials
- Packaging Supplies
- Shipping Costs
What about the costs that go into your SERVICE-based business?
When you are not selling a physical product, how do you determine the cost of your service?
Consider how you are investing in yourself and your knowledge in order to increase the value that you offer.
Missed Business Deductions for Service-Based Businesses
Educational Courses and Certifications
It doesn’t matter if you are upskilling, maintaining certification, or attending industry-specific workshops – education and training that helps you improve your business is a valid business deduction.
Website Hosting & Domain Subscriptions
If you are in the Service business then you must (or should) have a professional website.
The cost of design and creation, as well as hosting and domain renewals can be written off. The design alone could be a substantial cost.
Marketing and Advertising Fees
You may be running paid social media ads, or have hired a designer to manage your promotions.
Branded merchandise to support your business growth are typically missed deductions.
Fun fact – Investing in branded apparel is perhaps the only time it is appropriate to deduct clothing and it’s a great way to get your business info seen.
Home Office Expenses
If you are using a home office to generate your income then you should be deducting a percentage of your household expenses against your income.
This can be a cumbersome calculation that your professional bookkeeper will assist you with.
How Beautifully Balanced Books Inc. will help you:
Deductions are not a one-size-fits-all application. I do not work with a blanket productized approach that applies the same rules across all of my clients.
I view each of my clients as a unique business requiring individualized consideration.
I do not simply input your income and expenses:
- I spot deductions you didn’t know you could take
- I help to categorize your deductions properly for maximum (and valid) benefit
- I keep your books in order and ready through the year, NOT just in an annual panic for tax time
- I listen to your needs and will provide you with the information YOU need vs a basic productized report
- I will put my eyes on all of your transactions and direct them into your accounts vs trusting AI to decide
I am here to ensure that your service-based business has the same financial clarity and tax deductions that a product-based business has.
Let’s start the discussion! Request a Quote and I’ll be in touch with an estimate of cost.
