We’re starting our Finance Friday – when we’ll share one Finance Tip for Creatives and Entrepreneurs.

As a small business owner, we know one-too-many expenses are the nature of business. From start-up costs to equipment – sometimes we might ask “How do entrepreneurs survive in this world without funding or loans”?

Some business has a higher starting cost than others. As Creatives Entrepreneurs, we can start a business with little expenses. As a finance professional, my goal is always to help businesses grow, make good decisions and save money.

What the fluff is Tax Deductions? Tax Deductions will reduce your taxable income. This means that, if you have a tax deduction of $5,000, net profit of $50,000, your taxable income will be $45,000. Not too shabby!

One very popular tax deduction is Advertising. Every business needs a little push to grow, to launch a new product, etc.

The most common Advertising Expenses are:

  • Online Ads: Social Media, Google Ads, Digital Publications, Podcasts – you name it
  • Printed Ads: Good Ol’ Magazine and Newspaper ads, Billboards
  • Commercials
  • The cost of building and maintaining your website
  • Business cards, postcards – any printed material to promote your business
  • SWAG with company logo or name
  • Email Marketing – MailChimp, Constant Contact, etc
  • Sponsored Content and Sponsoring Events
  • Promoted listing
  • Food and Entertainment for Promotional Events

The next question on your mind is “Ok, now I know what advertising expenses are – how can I make sure I can benefit from a tax deduction?”

Keep records! Make sure you have your receipts – in a shoebox, a picture on your phone, a folder on your computer or using a receipt management software such as HubDoc. Don’t forget to add that expense on your spreadsheet or accounting system with the correct annotation “Advertising” and you should be all set.

I hope you can make good use on this tip! And I’ll see you next week!

PS. Advertising is just one of many kinds of tax-deductible expenses. Here are 9 more.