Tips for Tracking and Deducting Startup Costs

by Craig Anthony

0 min read

Startup costs are reasonable business expenses incurred before a company is officially in business. These costs may include office space, furniture, market research, consulting fees, equipment, and similar business-related purchases. If you’re thinking about starting a new business, adopt an expense-tracking system now, and use it to record and manage all of the company’s receipts, before and after the first day of business.

Consider a mobile app, such as Xpenditure or IQBoxy Expenses, to digitize receipts and simplify tracking. For tax purposes, business purchases made before your company’s start date qualify as startup costs, and those made after that date are usually written off as business expenses.

Related Articles

4 Mobile and PC-Based Receipt Scanning Software Programs for Small Businesses

The prior year’s expense receipts may be stuffed in drawers and cabinets,…

Read more

What’s Changed in the New QuickBooks

The new QuickBooks Online bookkeeping software has gone through quite a few changes. As…

Read more

How to Start a Consulting Business

Business consulting is one of the simplest small businesses to set up,…

Read more