Top 5 Tax Deductions Small Businesses Often Overlook
When it comes to saving money on taxes, every dollar counts. But many small business owners miss out on valuable deductions simply because they don’t know what they’re entitled to. Here are five commonly overlooked business expenses that could reduce your tax bill.
- Home Office Expenses
If you run your business from home—even just part-time—you may be able to claim a portion of your rent, mortgage interest, power, internet, and other household costs. Just make sure the space is used regularly and exclusively for business. - Vehicle Costs
If you use your car for business purposes, you can claim mileage or a portion of vehicle-related expenses like petrol, insurance, and maintenance. Just keep a detailed logbook or use an app to track business-related trips. - Professional Development
Attending training sessions, webinars, or conferences? Those costs—including registration fees, travel, and accommodation—are often deductible. The same goes for subscriptions to industry journals or online learning platforms. - Software and Subscriptions
Ongoing costs for cloud-based tools like accounting software, CRM systems, or even social media schedulers are all potentially deductible if they’re used for business purposes. - Bad Debts
If you’ve made a genuine effort to collect payment from a customer and still haven’t been paid, you may be able to claim the amount as a bad debt—just make sure you’ve recorded it properly and can show your attempts to recover the funds.
Final Tip:
Keep good records of all your expenses and speak with your accountant about what you’re eligible to claim. A little diligence throughout the year can lead to big savings at tax time.
