Business Expenses Can Help You Reduce Your Taxes
Let's talk about everyone's favorite topic: tax write-offs! (Okay, maybe not everyone's favorite, but definitely something that can put money back in your pocket.)
As a business owner, understanding tax deductions isn't just about saving money—it's about smart business strategy. While tracking expenses might not sound thrilling, think of it this way: proper expense tracking is like getting a discount on everything you need to grow your business.
Professional Development Write-Offs: The Smart Way
One of the biggest opportunities (and potential pitfalls) for online businesses is writing off educational expenses. Here's what you need to know:
Key Guidelines: • Limit major training investments to 2 per year • Choose events directly related to your business • Document how each investment relates to revenue generation • Prioritize local or Canadian options when available
🚫 Common Mistakes to Avoid: • Claiming too many conferences/courses • Writing off international training when local options exist • Not keeping proper documentation
Pro Tip: Before booking that exciting conference or course, ask yourself: "Does this directly contribute to my business growth?" If yes, make sure to document how!
Want to learn more about qualifying business expenses? Our comprehensive guide covers: ✓ Home office deductions ✓ Digital tool subscriptions ✓ Marketing expenses ✓ Equipment purchases ✓ And much more!
Remember: Smart tax planning isn't about claiming everything—it's about claiming the right things correctly.
Need help organizing your business expenses? Let's talk about setting up a system that works for you.
Tech Write-Offs for Your Online Business: What You Can Actually Claim
Let's talk tech—one of the most significant (and necessary) expenses for online businesses.
Essential Tech Write-Offs:
- Computer Equipment ✓ Primary business computer ✓ Dedicated monitors ✓ Backup devices ✓ External hardware
Important Note: If family members use your equipment, you'll need separate devices to claim 100% business use. Mixed-use equipment may only be partially deductible.
- Display Equipment ✓ Monitors for daily work ✓ Large screens for virtual meetings ✓ TV screens for online training ✓ Presentation equipment
Pro Tip: Running virtual workshops or training sessions? A large display (like a TV) used primarily for business presentations is typically a legitimate write-off.
Key Considerations: • Document business use percentage • Keep receipts and usage logs • Track replacement cycles • Maintain separate devices for business vs. personal use
Remember: The key isn't just buying equipment—it's buying the right equipment that genuinely supports your business operations.
Need help determining what tech expenses you can claim? Let's talk about your specific business needs.
#1 Rule of Business Expenses: Track Everything!
Let me be crystal clear: TRACKING IS EVERYTHING!
It's the difference between keeping more of your hard-earned money and giving extra to the government. (I know which option I prefer!)
Your Tracking Options:
- Cloud Accounting Software ✓ Xero (our top recommendation) ✓ QuickBooks Online ✓ FreshBooks ✓ Wave (great for beginners)
- Basic Solutions ✓ Spreadsheets ✓ Mobile apps ✓ Receipt tracking tools ✓ Paper systems
Here's the truth: The best system is the one you'll actually use consistently.
Why Tracking Matters: • Maximize tax deductions • Clear picture of business health • Stress-free tax season • Audit-ready records • Better business decisions
Don't let "perfect" be the enemy of "done." Start with any system, but START!
Pro Tip: Still feeling overwhelmed? That's exactly why we created our Numbers Made Easy program - to help you set up a tracking system that actually works for your business.
Remember: Every receipt you don't track is potentially money left on the table at tax time.
Smart Timing for Business Expenses: Don't Wait Until Year-End!
Here's the Truth About Year-End Purchases: • A $500 expense in December = Same tax benefit as January • Late purchases = Lost cash flow opportunity • Rushed decisions = Often poor investments
Smart Expense Timeline:
Q1 (January-March): ✓ Plan major purchases ✓ Review current subscriptions ✓ Set spending budget
Q2-Q3 (April-September): ✓ Make strategic investments ✓ Track effectiveness ✓ Adjust as needed
Q4 (October-December): ✓ Review necessary purchases ✓ Avoid panic buying ✓ Plan for next year
Pro Tip: For purchases under $500, spread them throughout the year when you actually need them. This helps your cash flow and ensures you're buying with purpose, not just for tax write-offs.
Remember: The goal isn't just to reduce taxes—it's to make smart investments in your business when they'll benefit you most.
Don't let poor timing cost you money. Book a discovery call to discuss creating a strategic spending plan for your business.
Tax Expense Checklist
Curious about the most common kinds of expenses when you're running an online business? Check out my FREE Guide below, including links to more details within the CRA website.
Last Thought
Shift Your Perspective: Business Expenses Are Investments
Here's a mindset shift that could transform your business: Every expense has the potential to be both a tax benefit AND a business growth tool.
Smart spending means asking: ✓ Will this help my business grow? ✓ Does it solve a current challenge? ✓ Can I claim it as a legitimate expense? ✓ Will it make my life easier?
When you view expenses this way, you're not just saving on taxes—you're investing in your success.
Ready to Take Action?
Download our Free Tax Write-Off Guide [Button: Get Your Free Guide]
Book a Training Session Whether you're: • A solo entrepreneur • Leading a team • Part of a business group • Running a membership community
We offer customized training to help you master your business finances.
Questions? Let's connect! Book a quick chat to discuss your specific business needs.
