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Author: Jake Snelson

Q: What can I count as deductions for a blog conference? Are clothes deductible?

A: You’d be surprised by the number of deductions you can take from attending a blogging conference. The simplest way of looking at potential deductions is that if it relates to or promotes your blog you can deduct it.

As far as clothes go – unless you’re required to wear a uniform, or wear safety gear, like boots or a hard hat – the IRS doesn’t count buying new clothes for a conference as a tax deduction.

Here’s the short list of what’s deductible.

Conference Registration Fees

You can deduct conference registration fees for a blog conference where you network and learn to improve your blog.

Licensing Fees

You can also deduct, licensing fees, as long as they pertain to your blog topic. (i.e. You blog about hairstyles and you pay a licensing fee to maintain your stylist license)

Training

Any training you receive, as long as it pertains to your blog or the topic you blog about, is a valid deduction. The cost of that online class you’re enrolled in about SEO  is tax deductible. or the crash course you’re taking in graphic design so you can start that design blog you’ve always dreamed about all count as tax deductions. Even if you attend a virtual blog conference it still counts!

Make sure you print and file receipts, or if you’re really organized, start a simple spreadsheet with date, purchase amount, who you paid, and what it was for. Still stash your receipts so you have them as proof if by chance you’re audited.

Travel & Meals

As long as travel and meals are related to your blog or business, then you can deduct them on your taxes. Keep receipts for bus passes, plane tickets and taxi cabs. Even keep a mileage book of your travels if you’re driving to the conference.

Coffee & Drinks

Coffee dates and drinks for business meetings or to meet with potential clients, are also deductions – again, a receipt stash and a simple spreadsheet will make your life that much easier come tax time.

Check out our more extensive list of deductions for bloggers or contact us if you have specific questions regarding your taxes.

Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that too.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

What can I deduct for this blog conference? Are clothes deductible?

If I have an LLC, must I pay for all my business expenses with my business account?

What potential business expenses might I have as a blogger?

What percentage of my work time do you recommend I spend on accounting?

Can I count digital products I give away for review as expenses?

What is the best way to keep track of the little expenses that add up over the year?

What do you suggest bloggers do when given free stuff as compensation?

 

Q: Can I count product samples or digital products I give away for review as an expense?

A: Yes. But there are some qualifying factors you’ll need to meet to do so. 

1. If it relates to business you reasonably expect to gain in the future, you can usually deduct the cost of institutional or “good will” advertising that is meant to keep your name before the public.

If you gave away digital product so it could be reviewed and your product and/or name will be kept in front of potential customers, then you meet the requirement.

Examples of good will or institutional advertising include:

  • advertisements that encourage people to contribute to charities, such as the Red Cross or similar causes
  • having your own business sponsor a Little League baseball team, bowling team, or golf tournament
  • giving away product samples
  • holding contests and giving away prizes

 

2. The amount you expense has to be actual dollars. Time and labor that you give away as an advertising expense doesn’t count – so the time you spend reviewing other people’s product can’t be a deduction, nor can the time you spent in creating the digital product. Only the cost in dollars, or the price of the actual product, can be deducted.

Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that too.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

If I Have an LLC, Must I Pay for All My Business Expenses with My Business Account?

Q: If I have a LLC, must I pay for all my business expenses with my business account?

A: That’s a good question. But lets talk about best practices first and see if that doesn’t clear it up. 

No matter what type of business you have – LLC, corporation, or sole proprietorship – an accountant or financial business advisor will usually recommend that you have a separate business account.

There’s a few reasons for this. First, it simplifies things by keeping business and personal finances separate. Less mingling means less confusion and less paperwork come tax time.

Sure, we could track all the money back and forth and have receipts and documentation for how the money was spent and from which account, but you can eliminate the hassle and the headache if you just stick with funding business activities from the business account.

Second, when you mingle your accounts you’re weakening the legal liability protection an LLC provides. With an LLC, the courts basically consider you and your LLC two separate entities. This is a huge advantage if you’re taken to court.  Someone can sue your business, but they won’t be able to sue you personally, unless you’ve personally guaranteed something.

If you mingle your business and personal accounts, the courts could potentially go after you as an individual, citing that the fact that it looks less like you’re running a separate entity and more like your personal finances and business account are one and the same.

Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that.

Interested in Learning More?

Schedule a free consultation with our team!

Q: What do you suggest bloggers do when given free stuff as compensation? 

A: Great question. Here’s a few things to keep in mind if you’re receiving “free stuff” as compensation.

free stuff as compensation

As an accountant that works with small businesses, this question comes up quite a bit. And although this statement seems fairly simplistic, the first thing you need to remember when you’re given free stuff as compensation is that you’re really getting paid in product.

Reviewing product is a fairly common practice among bloggers. Many companies provide free services or products for you to review and share your opinions with your readers and friends. It’s not cash, so it seems like a freebie, but a good rule of thumb is to think about what you might be providing them in return for that “free stuff”. If there’s anything you may be providing, then it’s easy to see that the “free stuff” is really just payment in kind instead.

You can still accept the items, but remember that the dollar value of those items will need to be recorded as income and reported when tax time rolls around.

You might even receive product from someone with “no strings attached”. They don’t require you to write a review or return their product. This may not happen as often, but are you required to report it on your tax return if they don’t expect you to review it?

Best practice would suggest that you do. If a company is sending out product, odds are they’re hoping for a kickback (you can read more about this here) whether they require it of you or not. Odds are, they’re expensing the cost of the product from their taxes – so they consider it to have a monetary value, even if it isn’t cash. If you can answer yes to the question – “do you think they’re deducting this “free stuff” come tax time?” with a yes – then odds are you should be reporting it as compensation.

We understand that situations like these get tricky. If you have additional questions or  want some advice about a certain situation, drop us a line. We love to talk taxes and deductions with bloggers.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

What is the best way to keep track of the little expenses that add up over the year?

If I have an LLC, must I pay for all my business expenses with my business account?

What potential business expenses might I have as a blogger?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

 

Accounting for Bloggers

Most bloggers focus their time and creative energy on their actual blog posts and ideas, but some neglect the “business” of blogging. Accounting & taxes for bloggers can be especially overwhelming. To help, we’ve put together a FREE Accounting & Taxes 101 Course, just for bloggers. It’s simple and straightforward and provides you with what you need to know to better manage your blogger business.

You don’t have to worry or dread the business aspect of your blog for another minute! The following articles will take your through accounting & taxes for bloggers.

Accounting for Bloggers

Accounting 101 for Bloggers

3 Blogger Accounting Tips to Increase Blog Profits

I’m a Blogger. How do I Legally Operate a Giveaway or Contest on my Blog?

I’m a Blogger. Can I Pay my Family for Their Help?

I’m a Blogger. How Do I Pay my Employees?

Taxes for Bloggers

Taxes for Bloggers

Top 20 Items Bloggers can Deduct on their Taxes

I’m a Blogger. Does the IRS Consider my Blog a Business or a Hobby?

Do I Have to Report My Blogging Income? What if I Chance it?

I’m a Blogger. Can I Deduct Hosting, Web, and Design Fees?

I’m a Blogger. Can I Deduct Conference Registration Fees, Travel, and Meals?

How Does the IRS View Sponsored Blog Posts?

Do you have any other accounting for tax questions about your blog you’d like answered? Give us a call, send us an email, or let us know on our Facebook page and we’ll be sure to offer professional accounting advice from one of our certified Vyde accountants.

 

Accounting is one of those tasks that grow with your business. The bigger your business grows, the larger and more complicated accounting tasks become. Which means accounting mistakes are more prone to happen. You shouldn’t take managing a company’s finances lightly.

Many small business owners choose to tackle their own accounting and small business bookkeeping tasks and while some are able to pull it off, many are making costly accounting mistakes they don’t even know they are making.

Here are four common accounting mistakes to avoid in your small business:

Mixing business and personal finances

Mixing business and personal finances

While your business is still in its infant stage, it’s easy to use your personal bank account. Most new business owners use the same bank account and record keeping methods you’ve always used, without separating the two. However, this can be a costly mistake to small business owners. One of the first steps when starting a new business should be to open a new bank account. If you pay for business expenses out of pocket, keep your records for tax deductions and reimburse yourself. It’s the same idea as turning in receipts to your employer for a business expense. Try to keep your personal and business accounts as separate as possible.

Forgetting to record small transactions

Many small business owners don’t keep track of small expenses simply because they seem insignificant. Mailing a package, or purchasing file folders don’t seem like expenses you need to keep track of. However, it is essential that you track even the smallest of transactions, no matter how insignificant. Those small business-related purchases add up and after a while, you’ll rack up a decent amount of tax-deductible business expenses. If the IRS ever audits you, you’ll want to have records or each and every business expense. Not to mention, staying on top of the small transactions makes managing the larger business expenses that much easier.

Not setting a clear budget for each project

Failing to effectively budget even the smallest projects within your company can be a costly mistake. A project that isn’t properly budgeted can end up costing a company way more money than it should have. Simply because there is no clear plan going in. Set a budget for each project, convey that number to employees working on the project, and stick to it. Setting budgets for all projects keeps a business’ finances on track and cuts spending significantly.

Trying to manage all accounting in-house

When a business is first starting out, they have limited expenses which makes it easy to manage your own accounting. However, as your company grows, managing your own accounting could actually be costing your business money. While hiring an accountant will cost you more money each month, you’ll actually save money long-term. An accountant can help you free up your time and focus, find tax deductions you didn’t know about, and find errors that only an expert can spot. In fact, the IRS reported over $3 Billion in penalties and fees charged to business owners for mistakes in taxes and payroll in 2013.

Not setting a clear budget for each project

To speak with an accountant about saving your small business time and money, and avoiding these costly mistakes, contact Vyde today.

FAQs about Accounting Mistakes:

  1. Why is mixing business and personal finances a mistake?

    Combining finances can lead to confusion, hinder tax deductions, and complicate financial tracking. Separate accounts streamline record-keeping.

  2. Why should small transactions be recorded?

    Small expenses accumulate and impact financial records. Proper documentation ensures accurate tax reporting and facilitates financial management.

  3. Why is setting a clear budget for each project important?

    Clear project budgets prevent overspending, enhance cost control, and promote financial discipline. They ensure efficient resource allocation and project management.

  4. Is managing all accounting in-house advisable for growing businesses?

    While manageable initially, in-house accounting may lead to costly errors as businesses expand. Professional accountants offer expertise, uncover deductions, and mitigate IRS penalties.

  5. How can an accountant benefit small businesses?

    Accountants provide financial expertise, uncover tax-saving opportunities, and identify errors that could result in IRS penalties. Contact Vyde for professional assistance and long-term financial stability.

Accounting mistakes can be costly for small businesses. Make sure you avoid these four common accounting mistakes or hire an accountant to help you.

Before you read on, take a quick guess at how many small business start-ups fail within the first five years. No reading ahead!

According to the Small Business Administration, about half of all businesses fail within the first five years. 50% of businesses make it, and 50% don’t. Are you shocked? Maybe feeling a little unsettled about your new business venture?

If you’ve found a way to make money and suddenly it feels more like a business than a hobby or side-job, you’ve got a business on your hands. Congrats! Here are a few quick accounting tips for making sure you’re business is among the 50% that are still around five years from now.

  1. Keep it simple. Get organized, get legal, and get to work. The simplest entity you can form for now is a called a sole proprietorship. This means your business is owned and run by person and there is no legal distinction between the owner and the business. No employees, no payroll, no fuss.
  2. Obtain proper licenses and tax information. Since you’re going to be the owner/entity of your sole proprietorship, you’ve got a few other tasks to take care of. You need to acquire an occupational license (if mandated in your area) and you must remit all state or city tax collections on retail or sales your business collects.
  3. Concentrate fiercely on your business, but don’t be irresponsible. Now is the time to buckle down and build your business—find ways to market to your customers and clients, improve your products and services, and build your brand. As a sole proprietor, the IRS won’t even know you exist until after you file your first personal income tax return. You’ll file your personal taxes (like usual) and also a Schedule C form where profits and losses of your business are reported. If you don’t quite have a streamlined process of doing business yet, not to worry. For a sole proprietorship, a separate bank account is not mandated as it is for an LLLC or Corporation. If your business claims a loss during the first few years, those losses can offset your day job’s income and provide a possible tax refund.
  4. Develop an organized way to pay yourself. Another advantage of a sole proprietorship is that there are no payroll taxes taken out, and no set way you have to pay yourself. You can set up a certain percentage of profits you plan to pay yourself, or you can simply keep what’s left over after paying all business expenses. Often times, S corps don’t have to pay quarterly estimated taxes either. Click here to learn about specific scenarios when they do.
  5. Keep track of expenses and income. You don’t really have to do much with your receipts until tax season comes along, but definitely keep them in a safe place. Perhaps an easier method of tracking expenses and profits is to use a simple two-page Excel spreadsheet, one with incoming money, and the other with outgoing. You can use your business expenses as write offs at the end of the year which deduct from the amount of money owed on taxes.
  6. Plan to succeed, but be prepared for the worst. Remember that statistic from the beginning? If your business fails, no special forms are required to be reported to the IRS, you just simply stop doing business. All you have to do is file one final Schedule C and you’re done.

business experiences significant growth

After your business experiences significant growth or you hit the five year mark, talk to a CPA about changing your entity type to one that could save you more money and be more efficient for your business. Vyde offers free accounting and small business bookkeeping advice all year long. Contact us with your sole proprietorship questions and we can offer some accounting tips and point you in the right direction.

FAQs:

What is the simplest business structure for a small startup?

A sole proprietorship is the simplest entity, where the business is owned and run by one person without legal distinction between the owner and the business.

What licenses and tax information are required for a sole proprietorship?

Owners need to acquire an occupational license (if mandated) and must remit state or city tax collections on retail or sales their business collects.

How does taxation work for a sole proprietorship?

Profits and losses of the business are reported on a Schedule C form along with personal income tax returns. Losses can offset other income, possibly leading to a tax refund.

How should a sole proprietor pay themselves?

Sole proprietors have flexibility in paying themselves, either by setting a percentage of profits or taking what’s left after business expenses. No payroll taxes are deducted.

What’s the best way to track expenses and income for a sole proprietorship?

Keep receipts safely stored for tax season. Utilize a simple Excel spreadsheet to track incoming money and outgoing expenses. Business expenses can be written off at year-end to reduce tax liability.

If you have looked at your small business bookkeeping and you’re not in a place to offer every employee a salary of $70,000 a year–or even a small raise–you can still make your employees feel valued and happy in their jobs.

For many employees, feeling valued and appreciated at work is just as important as the amount of money they make anyway. In fact, only 21% of employees feel strongly valued at their work. That leaves a whopping 79% of employees who feel only marginally valued or not valued at all in their contributions to a company, according to Engagement Report.

How can a manager improve overall morale and employee satisfaction at work?

employee see their worth

Help your employee see their worth by making them feel valued in the workplace.

  1. Listen to them. You—the manager. Not your secretary or your right hand man, but you. Take the time to listen to their ideas and concerns as an authority who can make changes within the company. Remove all distractions and set aside time for each employee individually.
  2. Recognize their contributions. Your company wouldn’t be where it is today without a lot of hard work from a lot of hard working people. But these people also have lives outside of work—disappointments, financial woes, and personal problems. Take a moment to recognize when an employee makes a big sale or acquires a new client. A simple email or text message, or even a pat on the back and a thank you, is often all it takes to boost an employee’s confidence and increase their concern for the welfare of the company.
  3. Write a hand written note. In the sometimes overwhelming technological world we live in, quick “thank you” emails and text messages often get lost in the shuffle of workplace and personal demands. However, a handwritten note speaks volumes for an employee. Set aside five minutes each week and write a note or card to one of your employees. Thank them for their contribution and let them know of your personal gratitude for their work. Your employee will be surprised and appreciative that you took the (extra!) time to recognize them.
  4. Be flexible about work schedules. This is a perk almost all employees value and it offers the most gain with the least pain for an employer. As long as an employee is deserving and doesn’t abuse the privilege, they’ll appreciate the flexibility their job offers, even if their salary isn’t quite where they would like it to be.
  5. Make work fun. Create opportunities for employees to socialize with their superiors by offering occasional contests during lunch, donuts in the break room, or just a quick bit of trivia before a staff meeting. Having fun at work is proven to increase productivity among employees.
  6. Offer a clear path to advancement. While this task can be challenging for a small business because of limited opportunities to offer promotions, a healthy dose of honesty can be good for everyone. At least once each year, sit down with each employee for a career assessment. Find out what their goals are within your company and ask them how you can support their goals. This may mean providing training, tuition programs, or helping employees find opportunities for advancements—even if it means leaving your company for another one. Employees are always thinking about their futures and knowing what their potential opportunities are helps them feel secure in their path.
  7. Remember the two secret words. While the phrase often gets lost in the hustle and bustle of everyday life, a simple “thank you” rarely goes unnoticed or unappreciated. Make an effort to thank at least one employee each day for something they’ve done to better the company.
  8. Take the team to lunch. While a team lunch might not even be in the current budget, making it happen can have a surprising effect on company morale. Taking your team to lunch on the company helps them feel valued in the workplace and provides a much-needed break from the sometimes mundane tasks of everyday work.
  9. Show them that others need them, too. While employees love hearing it from the top dog, feeling like an integral part of the company can help an employee feel like the work they’re doing is important. Feedback from others can sometimes pack more of a punch than positive feedback from the boss. Pay attention when a client sends you an email about an amazing experience they had with one of your employees and pass it along to them every time.
  10. Challenge Them. Most jobs come with less-than-glamorous day-to-day responsibilities. Balance the grunt work with a challenge every once in a while and let your actions speak louder than words. Recognizing an employee for something they did is great, but believing they can do something bigger is even better. When you put trust in an employee to do a difficult task, you’re sending the message, “I know you’re capable of this and I can trust you to do a great job.”

While most of these things may be in the back of your mind, your employee will never know what you’re feeling unless you tell or show them. You might be surprised how easy it is to implement a few key tasks that will help your employee recognize their worth in the company, even if that doesn’t come in the form of a raise.

Employee Appreciation and Valuation

FAQs for Employee Appreciation and Valuation in the Workplace

1. How can a manager improve overall morale and employee satisfaction? Managers can boost morale by valuing employees’ contributions, listening attentively, recognizing achievements, offering flexibility, fostering a fun work environment, and supporting career advancement.

2. Why is recognition important in employee valuation? Acknowledging an employee’s efforts enhances their confidence, commitment, and attachment to the company, reinforcing their sense of worth and significance.

3. How can managers make employees feel valued without substantial financial incentives? Managers can show appreciation through handwritten notes, providing flexibility in work schedules, organizing occasional team activities, and recognizing employees’ importance through feedback from clients or peers.

4. What’s the significance of providing a clear path to advancement? Offering employees a vision of advancement and discussing career goals demonstrates an employer’s commitment to their growth and development within the company.

5. How can managers empower employees beyond verbal recognition? Managers can challenge employees by entrusting them with more significant tasks, showcasing belief in their capabilities, which often has a substantial impact on employees’ confidence and motivation.

Hosting, Web, and Design fees

Do hosting, web, and design fees count as deductions? Yes, as long as they’re specific to the running of your site or blog, they count.

Here’s the quick list if you’re running short on time:

  • Design fees  – a new logo or look for your site, even business cards.
  • Hosting fees – unless you’ve got blogspot.com or wordpress.com in your site address you’re paying for your own little piece of the internet.
  • Web Management & SEO

Read on for the fine print on deducting these fees and expenses.

There are a lot of hidden expenses for bloggers. Design fees, hosting, web management, SEO. The list goes on and it can get terribly expensive – but with a little knowledge about what is or is not a valid deduction, you’ll end up saving yourself a dime or two come tax time.

Whether you write a fashion blog, a foodie blog, or a blog about web design you’re probably paying for domain names, and site hosting. Seeing that you’re already paying the bill, why not save the receipt and have it be a write off at tax time?

It doesn’t matter if your blog isn’t about tech stuff, the behind the scenes stuff of running your blog are still related, so they count.

Don’t forget the fees you pay to a graphic designer for your logo and business cards. It may only make your site appealing, but it’s an element meant to build your blog and network so it’s a valid deduction as well.

We find that trying to come up with ideas for deductions as you’re trying to file makes things harder. Take just a few minutes right now and start listing off recent expenses that are blog related. If you’ve got a few more minutes to spare, start tracking down receipts for specific dollar amounts and update your small business bookkeeping with what you find. And from here on out, print off or save all receipts – that way you’re that much closer to finishing your taxes when April 15 comes rolling around again.

To learn more about accounting for bloggers, visit these posts:

Accounting 101 for Bloggers

Taxes for Bloggers

Top 20 Items Bloggers can Deduct on their Taxes

Is My Blog a Business or a Hobby?

How Do I Legally Operate a Contest or Giveaway on My Blog?

3 Tips to Increase Blog Profits

How Do I Pay My Blog Employees?

Can I Pay My Family For Their Help?

Can I Deduct Conference Registration Fees, Travel, and Meals?

Do conference registration fees, travel and meals count as deductions? Yes, as long as they’re blog-related, they count.

If you’re here reading about taxes you’re probably aware that you can deduct expenses to help lower the amount you owe in taxes. The real question is how much and what can you deduct legally? And what do you need to do to track or keep record of these deductions.

The simplistic way of looking at potential deductions is that if it relates to or promotes your blog you can deduct it.

Conference Registration Fees

Conference Registration Fees

Conference registration fees for a blog conference where you network and learn to improve your blog can be deducted.

Licensing Fees

Licensing fees, as long as they pertain to your blog topic, can be deducted as well. (i.e. You blog about hairstyles and you pay a licensing fee to maintain your stylist license)

Training

In addition, any additional training you receive, as long as it pertains to your blog or the topic you blog about is considered a valid deduction as well. So the cost of that online class you’re enrolled in about SEO, or the crash course you’re taking in graphic design so you can start that design blog you’ve always dreamed about – well, those are deductions as well.

Print and file receipts, or if you’re really organized, start a simple spreadsheet with date, purchase amount, who you paid, and what it was for. Still stash your receipts so you have them as proof if by chance you’re audited.

Travel & Meals

Travel and meals are also deductions if they’re related to your blog or business. Keep receipts for bus passes, plane tickets and taxi cabs. Even keep a mileage book of your travels if you are often driving to consult with clients, picking up product from a vendor, or making trips to the post office to ship product to clients.

Coffee & Drinks

Coffee dates and drinks for business meetings or to meet with potential clients, are also deductions – again, a receipt stash and a simple spreadsheet will make your life that much easier come tax time.

Travel and meals are also deductions

Check out our more extensive list of deductions for bloggers or contact us if you have specific questions regarding your taxes.

To learn more about accounting for bloggers, visit these posts:

Accounting 101 for Bloggers

Taxes for Bloggers

Top 20 Items Bloggers can Deduct on their Taxes

Is My Blog a Business or a Hobby?

How Do I Legally Operate a Contest or Giveaway on My Blog?

3 Tips to Increase Blog Profits

How Do I Pay My Blog Employees?

Can I Pay My Family For Their Help?

Can I Deduct Hosting, Web, and Design Fees?