Maximize your Travel, Meals and Entertainment Deductions
Working on growing your business is important. However, working to improve your business is also important. One aspect that many businesses (whether established, startup, big or small) allocate little resources is the accounting and finance function.
Not understanding the financial or accounting data, your company has may cost you money.
Many start-ups and small businesses combine travel, meals and entertainment into one account. By separating into 3 accounts, your business will (1) maximize tax deductions and (2) have the ability to analyze the spend in each of these 3 categories without sorting through the 2 other categories.
As a reminder the tax treatment of these expenses differs. In general:
Travel – generally 100% deductible
Meals – generally 50% deductible
Entertainment – generally 0% deductible
If you are enjoying my tax and finance tips and would like to buy me a beverage