18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Expenses to Deduct for Your Small Business

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If you have a small business, accounting taxes payroll can help you properly allocate your expenses and grow your business. In many cases, small business owners do not understand what costs are actual business expenses. With this helpful guide, you can better understand your finances. This will help you make smart spending decisions and help your business look more profitable.

Using Your Home for Business

One common expense that many small business owners have is the need to use their home to conduct business. The following are common costs related to this deduction:

  • Mortgage interest
  • Utilities
  • Insurance
  • Repairs
  • Depreciation

Obviously the total cost of these expenses cannot be deducted for accounting taxes payroll purposes. However, a portion can be allocated towards your business expenses. Usually, this amount is determined based on the amount of space you use to conduct business in your home.

Using Your Car for Business

In like manner, many people use their cars for business reasons. When it comes time to pay taxes, you can deduct a portion of your auto expenses. For example, if you use your car 80 percent of the time in your car for business purposes, then you can deduct 80 percent of your auto expenses.

Payroll Expenses

Small businesses that pay employees can also deduct the cost of their wages. These wages usually include taxes as well. These fees are also tax deductible. If you provide your employees with any benefits such as retirement plans and/or health insurance plans, these costs can also be deducted.

Cost of Goods

A common expense for many businesses that sell products is the cost of goods. This cost can include several factors such as raw materials, labor costs, storage, factory costs, and more. All of these costs ultimately contribute to producing your product.

Since many small businesses are not familiar with the financial aspects of their businesses, they often hire help to handle their accounting taxes payroll. This can be extremely beneficial to help your business succeed.