How to Use Expenses to Your Advantage
So, a funny thing happened while I was getting my haircut the other day. When it was over, I asked my barber for the receipt. Here’s how it went: Her: You always ask for a receipt? Are you writing this off? Me: Yup. I schedule my haircuts around video filming, so I can write it off as part of my filming expenses. Her: I wish I could write that off. Me: Well, maybe you can write off other stuff you weren’t aware of. Didn’t you go to Europe in 2019? Her: Yeah, but it was a total vacation. Me: Yes, but you could have taken a workshop/class while you were there. You could have then written off some of your expenses that way. Talk to your accountant. Her: *The look you give when you realize that you could have written off part of your vacation but you didn’t and now it’s too late* I really do encourage you to talk to your accountant about all your possible write-offs. I feel that small businesses need to really fend for themselves when it comes to things like this and if we don’t take the initiative, we’ll never know. If you’re looking to increase your expenses and in turn, decrease your net income (for whatever reason) then it’s possible to structure your expenses (all legally of course) in way that your year will see greater expenses.
Maybe you need to purchase additional computer supplies/equipment in a year? Maybe you will need to hire a consultant to help with marketing or other duties? Maybe you’ve been working from home and haven’t been writing off your home office?
Maybe you’ve invested in educational courses to improve your skills or keep up with CEU requirements?
These are just some of the possibilities when it comes to increasing expenses. Just FYI, before I was reborn as a manual therapist, I was on the finance side of the internet world. This was part of my job back then! If you’re unsure, you can always bounce your ideas off me. I will say, of course, make sure to consult with your tax accountant to confirm that you’re abiding by all the laws. While I may know a trick or two, I am not an accountant. Prompting this conversation with them may yield some new ideas you weren’t aware of! It's definitely worth investigating! That’s it for now folks. I hope you and yours are well and healthy. That’s true wealth. <3