Wednesday, Nov. 25 | 2 min read
Why this matters
Margins in service firms are won or lost in the details. The right documentation turns everyday spending into compliant deductions.
1) Professional development & certifications
Courses, conferences, licensing renewal fees, exam costs, and required CEs related to your trade.
What to keep: Invoices, agendas/syllabi, proof of business relevance.
2) Software & cloud subscriptions
Project management, CRM, design tools, accounting, password managers, data backup.
Tip: Pay annually where appropriate and track per-seat costs.
3) Marketing & reputation management
Website hosting, ads, SEO services, directory listings, design/printing, review platforms.
4) Home office (regular & exclusive use)
A dedicated space for admin/management qualifies. Track square footage, utilities, and related expenses.
5) Business mileage & travel
Client visits, supply runs, conferences. Keep a contemporaneous log (date, purpose, start/stop odometer or credible map log).
6) Phone & internet
Business lines and the business-use portion of mixed-use plans.
7) Small tools & supplies
De minimis items (keyboards, microphones, lighting, test devices). Follow your capitalization policy.
8) Bank, payment processor & merchant fees
Stripe/PayPal/Square fees add up—don’t net them away from income.
9) Health insurance premiums (entity-specific)
Owners may be eligible to deduct premiums; treatment varies by structure—flag for your CPA.
10) Bad debts (accrual-basis)
Document attempts to collect and write off uncollectible receivables under a consistent policy.
Documentation checklist
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Receipts/invoices with vendor, date, description
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Purpose notes (who/what/why)
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Contracts/subscription confirmations
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Logs (mileage, mixed-use allocations)
How KKA can help
We’ll review your chart of accounts, identify missed categories, and implement a documentation workflow that stands up to scrutiny.
Disclaimer: General information only; not tax advice. Discuss your facts with a professional.