Kale Goodman is a serial entrepreneur and has over 18 years of service in the accounting field.
Pandemic restrictions are lifting, and if you're like me, you’re looking forward to taking advantage of a delightful tax deduction: business meals.
Being back in the office is becoming more and more common but staying there is another thing. One of my favorite deductions as a business owner is the business meal deduction. I can secure a deal while eating out at my favorite restaurant. It’s a win-win. I’m sure clients enjoy being in a more casual setting, too, sometimes.
Going out with your business partner and having a more relaxed business discussion over a meal is fantastic. However, if you don’t keep proper documentation of these business meals, it’s all for nothing.
The best way to keep track of all your business meals is simple. Use that thing that’s attached to your hand, your cellphone. Instead of maintaining folders and piles of receipts, condense and create a special album in your phone for “business meal receipts.” Make sure you write down on your receipt which was there and the date and time. Of course, most receipts specify location, date, and time anyway but check just in case.
Once you have all that information, you can snap a photo, put it in your specified album, and send it off to your accountant—very little work involved for something that can save you a lot. Now you won’t have to deal with losing your receipts, and they’re easy to locate. Your accountant will thank you too.
Business meals are 100% deductible from 2021-2022. Restaurants took a massive hit during the pandemic, so this is a way to encourage the economy’s stimulation. You’re not only saving money but also helping out the economy.
Keep track of your records, and you can be stress-free about these business meal deductions. Being a business owner doesn’t have to be all work and no play. It can be fun too.
© 2021 Kale Goodman