How to Handle Business Expenses and Deductions Like a Pro

Business expenses can lower your taxable income-but only if they’re tracked correctly. Many entrepreneurs miss out on valuable deductions simply because they don’t keep proper records or don’t know what qualifies.

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In this blog, we explain how to manage expenses and deductions like a pro and show how Remote Books Online can help you do it with ease.

1. Know What Qualifies as a Business Expense

Common deductible expenses include:

  • Office supplies and software
  • Marketing and advertising
  • Meals and travel (business-related)
  • Home office portion (if applicable)
  • Payroll and contractors

Pro Tip: The IRS allows only “ordinary and necessary” expenses. Keep everything business-related and well-documented.

2. Separate Business and Personal Spending

Mixing personal and business transactions is one of the most common (and costly) mistakes.

Fix: Use a dedicated business bank account and credit card from day one.

3. Track and Categorize Expenses Monthly

Falling behind on tracking leads to confusion and missed deductions.

Solution: Automate expense tracking through QuickBooks or use Remote Books Online for monthly categorization.

4. Keep Digital Receipts and Backups

The IRS may request proof of expenses during audits.

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Tip: Use mobile apps or email receipts to your bookkeeping provider. We’ll archive and attach them securely.

5. Understand Limits and Special Rules

Some deductions (like meals and vehicles) have specific rules.

Example: Only 50% of business meals are deductible, and mileage must be logged accurately.

Use Case

A landscaping business in Colorado hired Remote Books Online to organize their expense categories and store receipts. Within one tax year, they recovered over $12,000 in missed deductions from fuel, tools, and travel.

FAQs

What qualifies as a business deduction?
Anything “ordinary and necessary” to operate your business—like advertising, software, or professional fees.

How do I track expenses accurately?
Use bookkeeping software or outsource to Remote Books Online for monthly reconciliation.

Do I need to keep receipts?
Yes—especially for deductions over $75 and anything the IRS could flag. We store them digitally for you.

Can I deduct my home office or car?
Yes, with limitations. We’ll help you calculate and document those deductions properly.

Maximize Deductions and Keep Your Books IRS-Ready

Let Remote Books Online help you capture every eligible expense and prepare clean, compliant records year-round.

Schedule your free consultation or call 1-800-583-0148


Tax professionals and CPAs rely on our QuickBooks bookkeeping services to streamline financials and scale their practices efficiently.

Stay organized and tax-ready year-round with our flat-rate monthly bookkeeping services.

If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.

Streamline Your Finances: Download Our Free Bookkeeping Brochure

Take control of your business finances with confidence! Our detailed brochure provides insights into how Remote Books Online can help you maintain accurate bookkeeping, stay tax-ready, and make informed financial decisions. Discover how our tailored bookkeeping services can support your business growth and simplify your financial management.