How can people who use my business write it off as a business expense?
People have always come to me to help get them tickets to shows etc, because I know some people in the industry. So recently I decided to make it my own little business. I only take cash so far because it’s easier and I don’t have a merchant or a business account. I’ve only made a few grand so far so I don’t know if a business bank account will even be necessary. Someone recently told me that they want to use my services and that they don’t care how much it might cost because they can write it off as a company expense. I said sure, but don’t they need to put it on a credit card or something for that? How can I help this guy put my services as a company expense/write off? What does he need to do?
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3 comments
kemperk on August 8, 2009 at 3:57 am
me thinks you are focused in an inefficient environment;
let them do and you expand your b iz
Cabbie Luvr on August 8, 2009 at 3:57 am
1. Save a receipt.
2. Articulate how the expense relates to his business.
How they pay is not an issue.
amin on August 8, 2009 at 3:57 am
In view of the company the expenses are divided in two parts, viz: Allowable and Non Allowable. Any expense incurred for the benefit to the company, that is if that expense helps the company in generating of profit within the accounting period known as the financial year, then that expense is allowable and can be deducted from the profits, eg, sales expenses, shows attendance meant to benefit the company, etc. The rest of all the expenses incurred besides the above cannot be deducted from the profit, for that period and so it is called non allowable expense. A ticket is an authenticate voucher itself and the purchaser does’t need any further evidence of the expense actually incurred via credit cards or otherwise, ok?