Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

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

 

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Richard Pon CPA, CFP