The cost of running any business can be expensive. You must maintain a strict budget so you can keep track of expenses. If you’re running a business from a home office, you need to keep a record of all your tax returns expenses.
The monthly overheads of a home-based workspace are significantly less than renting an office space. That doesn’t mean there aren’t extra expenses. Let’s explore some of the ways you can keep running costs to a minimum.
Register as a Business With Office Suppliers
Buying stationery and essentials for your business in a retail store can be expensive. Often, large corporations register with suppliers so that they can enjoy discounted prices on basics.
Even if you run a small operation, you should keep an accurate record of the business-related costs separate from your home expenses.
Keep in mind that you can claim a portion of your electricity account for business use, in line with tax regulations. If you have a three-bedroom dwelling and one room is used solely for business purposes, you should be able to claim ⅓ of your electricity bill on your return.
Increase your energy efficiency overall when you shop lighting products that use less electricity.
Other Service Payments
There’s a list of additional expenses you’re eligible to deduct when submitting your tax return. Your water, gas, heat, and other costs like cleaning supplies can also be documented on your return.
You must keep all the relevant receipts and accounts to submit to the revenue authority.
Even services like refuse removal and gardening can be portioned accordingly and listed as business expenses. If you’re in doubt, contact your nearest tax office for guidance regarding what can be expensed to your company.
Competitive Insurance Rates
Shop around for competitive home insurance. Be sure to mention you run a business from home, as the business assets need to be specified. Give your insurance broker some time to find the most affordable quotation for you so that you can use additional cash for other expenses.
Keep a Record of Using Personal Items for Business Use
You might be home-office based mostly, but at times you might need to drive to clients for a meeting. Most conferences and meetings that you attend related to your business can be tax-deductible, which is why it’s crucial to keep a record of the mileages and dates of travel.
If you’re using your personal mobile device to conduct business, the same applies. The cell phone usage that’s business-related can be a tax write-off too. Your tax advisor can give you the details regarding each specific line-item that you can enter into your return form.
Use our handy tips to keep your home office costs down. However, keep in mind that if you have an office in a second location, you won’t be able to claim any of these expenses as business costs.