What Business Expenses are There When You Work at Home?

When you first start to think about working from home, it’s safe to say that your mind is definitely going to be on the benefits, of which there are many. Whether you’re a parent when you first start to do this, you’ll know that you have flexibility. You have complete freedom to work the hours that you want to work. Not only that, you can also choose the money that you earn.

Sure, you have to set goals and ultimately work towards them, but they can be a ton of fun to work on; it is a blessing. Nevertheless, you also have to make sure that you take care of all of your own taxes. Just like looking after the house finances, you have business finances to manage.

Now, tracking your income can be straightforward – especially when you note down all of the payments you get for your invoices. However, with expenses, it can be tough. You won’t always know what to record as a work from home entrepreneur. So let us consider some of the basics.

Operating Expenses

First, you have your operating expenses. These are the costs that you need to pay to get the job done. Maybe you have a hosting plan for your website or email server? Maybe you have software that you have to pay for. Do you need to pay for rental or subscription services for your work? These are all your basic operating expenses. Things like phone and internet costs can often be included too. You can also add other kind of costs you have for your specific job that you do too.

Office Expenses

Because you’re working from home in an office, you will often have office expenses. Maybe you even need to create that office space with contractors, builders, painting and flooring services too. Yes, you can deduct some of this. However, you will want to speak to your financial advisor specifically about the amount that you can deduct here. You can add things like paper, pens, printers and supplies as expense, too.

Contractors

When you are a freelance writer or blogger, you often need help. It is no wonder why people who work at home are usually into hiring contractors. You will hire a web designer, a graphic designer, an assistant, and even an accountant, too. All these cost you money but fortunately, these costs are deductible because they are professional costs. You should make sure that you offset these costs against what you’re earning.

Other Costs

Depending on your specific circumstance, there are often other costs that you have to consider. You may want to check with your accountant or advisor about your situation. It could be that you incur expenses when using the car for work or maybe, you have travel expenses when you’re going on business trips that can be considered for your taxes.