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5 Deductible Expenses of Small Businesses


When you run a small business or a startup many expenses could occur. But did you know that a lot of these expenses could be deducted and with that, you can reduce your overall tax liability?


Of course, it depends on your country, but I will present to you all the deductible expenses you maybe did not think that you most likely can reimburse when you file your tax return.


1. Insurance


All companies need insurance, as even the most organized business owner cannot predict the unexpected. Depending on the nature and size of your business these can be different. You might need them to protect your company and the office but also you can provide your employees with it as a benefit such as health or life insurance, which are fully deductible.


2. Loan


Most of the businesses start with a loan, as at the beginning most entrepreneur has only an idea and spirit but not enough money to kick off their company. Of course, the loans are not deductible, although you can deduct the interest paid on them.


3. Business Travel, Lunch, Vehicle


If you wish to keep a good relationship with your existing client or just have a nice meeting with your potential one, then most likely you or your employee need to travel or invite them to a nice restaurant or occasionally to an event. In most countries, you can deduct some percentage of the meals on your taxes, but not the event itself. Fortunately, it is not the case with the business travels, as all expenses related to that are deductible, for example, the flight or drive, hotels, even the cleanings and of course the meals. We call a travel "business travel" if it is necessary for your company, it is out of your local area and lasts longer than a working day. If you or your employee drive with a car which used only for business purposes, you can also deduct the expenses of it like the maintenance or the gasoline. If the car has a personal function as well, then you need to separate those costs and then you can reimburse only the ones spent on your business.

In order to claim these expenses, you and your team members need to keep all the receipts and invoices and go through different expense report procedures. If you want to make this process easier you can try for free an expense management tool called Haslle, by clicking here.


Read on: What is the expense report procedure at most companies and why should it be simplified?


4. Technology - Home Office Cost


Even if your business is small, you need to invest in different technologies in order to run your company smoothly. Under technology, I do not mean only the different kinds of software, such as accounting software, communication platform, or expense management tool, but also the internet access itself or the mobile phones used for business. These expenses can also be deducted until a certain percentage. If your company is home-based or you have been enforced to work remotely due to a pandemic, you can also reimburse the costs of your home office and not just the supplies you need, but the room that used as an office if it is not bigger than the given sizes by the government.


Read on: Expense allowance for employees to buy what they need for remote work

Read on: How to create the best home office?


5. Education


Sometimes you need to invest in people or in yourself, not just in equipment or technology.

In order to improve your services, sometimes you need to develop your and your employee’s skills as well. You can do it through courses online or workshops, and even university studies, the important criterion is that it needs to add value to your business, and then you can deduct the cost of the training.

If you wish to provide this opportunity easily for your employee’s you can provide them with virtual or pre-loaded credit cards and approve their educational request with one click with Haslle, an expense management tool which makes the whole procedure easier.

If you would like to try it for free just click here.


How to follow and manage your deductions in the most efficient way?


The main key is to be organized. Every expense you would like to reimburse on your business tax return needs to be well-documented and you should be able to easily overview them.

With a good tool, such as Haslle it can be really easy to keep track of all your expenses in real-time on your phone or laptop, and it can help you stay organized and make all tax and expense procedures effortless and paperless.


If you would like to try it out for free, please click below:


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