Is Halloween Tax Deductible for your Small Business? Posted on October 30, 2015October 25, 2016 by Jessica Lunk When it comes to Halloween goodies, how many costs are you eating? Halloween offers up spooky fun that can bring a unique and attractive atmosphere to your business, but it can be another expense on top of the normal, frustrating overhead you deal with every other day of the year. Good news! When done right, the holiday can actually give your business a tax deduction. Many small businesses pour loads of money into making their small business festive for the holiday. But you don’t need to count these expenses as a complete financial loss. Save all of your receipts for Halloween-related items in order to claim them as a deduction on your annual return. Halloween Candy The most surprising tax deduction for Halloween is candy. That big giant bowl of candy you keep at the front of your business for trick-or-treaters can actually be a write-off. Moreover, if you create custom candies branded with your company logo, the expense to make the product is another deduction. Even business cards and promotional flyers attached to Halloween candies are tax deductible. Got plenty of leftover candy? There are many charitable organizations that collect unused Halloween candy to send overseas to troops. Just make sure the charity you’re donating to has 501(3) status with the IRS. Keep in mind that chocolate is usually not accepted by many organizations since it will likely melt during transport. Plan on sending an expensive box of candy or chocolate to new or existing clients for Halloween? The IRS will accept the cost as a marketing deduction for your tax return. Halloween Costumes Providing your employees with Halloween costumes? Then, you can deduct the cost of the costumes worn during normal business hours. Another possible way to get a tax deduction and an excellent way to give back to your community is to donate used Halloween costumes to a local charity that accepts them. The IRS provides a listing of organizations with tax-exempt status that you can choose from. The organization will provide you with a receipt that you can save with your tax records. The tax deduction can be calculated by estimating the fair market value of the costume. Along with the receipts, you should keep photos of the costumes to prove that they were in good condition when donated. Parties and Decorations Although individuals can’t write off Halloween decorations on their taxes, businesses can. Since decorations are used to drive customers and clients into your business, they are eligible to be included in your itemizations. Decorations used for a company hosted Halloween party are accepted as well. If you have a Halloween party with the purpose of conducting business, the expenses associated with the event are deductible. Employee only parties will not count, so make sure you invite potential and existing clients to the event. Deductible expenses besides the decorations include branded Halloween goodies and advertising materials. Although employee parties aren’t eligible for deductions, you can write off the costs associated with any treats you provide on Halloween as a way to boost employee morale. This could include a catered lunch for your staff or individual goody bags. Advertising Around any holiday, many businesses end up increasing their advertising budget. You could be holding a special sale to drive more customers into your business around Halloween. Marketing costs may include promotional newspaper ads, social media advertisements, flyers, business cards, radio and TV ads, billboards, signs, and display racks. Don’t forget to include these special Halloween advertising costs to your list of tax deductions. Keep in mind that not all holiday marketing can be deducted. For instance, if you place a help wanted ad for extra Halloween staff, that’s considered a normal operating expense. With the knowledge of just how many Halloween expenses can be deducted, you can now elevate your Halloween celebrations to attract more new business and create a fun, inviting office atmosphere.
The Dreaded Finance Hat: 21 Small Business Budget Tricks Posted on September 24, 2015June 27, 2016 by Jonathan Herrick Even a simple personal budget can be complicated, so putting one together for a small business is a feat unto itself. As if sticking to it weren’t bad enough, creating a budget is often so daunting that we simply avoid it (or do it poorly to get it out of the way). There are so many moving parts. It can be difficult to get a handle on what needs to be done, when it needs to be done, and–most importantly–how you’re going to pay for it. Small business owners find themselves wearing many different hats, but the Financial Planning Hat is one we often worry will look terrible on us. But you can’t let your vanity cause your head to freeze. If you need to determine unique ways to plan for things like purchases for your business and investing in marketing, this is a very timely article for you. So get your pencils (and hats) ready for the 21 small business budget tricks! 1. Plan your needs. The first step is the most important one: You have to plan out what you need. Look at it in segments; you can separate them into quarters, projects, or events, but be sure to make a distinction between the “buckets” so you can asses how money should be allocated and budgeted. 2. Rank the buckets. Determine which buckets are most important, and rank them. Be methodical about your approach to this: Weigh the impact of the thing you are planning to spend money on and determine which does better for your business overall if implemented first. 3. Be aware of your cash flow. The first two steps are fun; they allow you to daydream about what you want to have and get you pumped for the way the business will look once you get your hands on those things. Now it’s time to look at how much money is actually coming in. Be honest with yourself here, because every dollar makes an impact. 4. List your expenses. All of them. It is important to know how your company spends money so that you can have a clear picture of what is left-over. Include overhead bills, salaries, and current subscriptions. Round up, not down. 5. Account for ebbs and flows. Seasonal ups and downs, costs of overhead, or a variety of other factors will cause changes in your income patterns. By anticipating when the money is thin, you can be ready with the budgeting changes that will keep you out of potential trouble. 6. Save a Little. Just like your personal budget, it’s always good to have an incidentals fund. You never know what might happen. And, if nothing does, then you have more annual revenue than you were expecting. Win-win! 7. Pare down. This is often the hardest part. Where can you reduce? Cutting your spending in one area will allow you to accumulate more money for your budgeting buckets. Really pay attention to discretionary expenses and ask yourself if you truly need it right now. 8. Compare your budget. Take a look at how other small businesses are spending their money. Learn from their mistakes, and improve on their good ideas. 9. Price shop. You know what you want to buy and you know how much you have budgeted toward it. Now do a little legwork to find the best price. If you’re lucky, you budgeted more than you needed. 10. Network for discounts. It’s all about who you know, so don’t be afraid to make use of the relationships you’ve fostered. Go through your networking list and search for ways to reduce the cost of items or services you are looking for. 11. Barter. If exchanging your goods or services for an item that you were budgeting for is an option, do it. Bartering is an age-old way to get things done, and for good reason; it’s a win for both parties. 12. Clip coupons… really. Buckle down and clip coupons. Coupon-esque websites (like Groupon) offer occasional discounts for a wide variety of products and services. When possible, use them. Reinvest the change in your business. 13. Wear more hats. You don’t have to be a handy person to step in and do more yourself so that you save on labor, and you don’t have to be an expert to troubleshoot. Youtube houses tutorials on nearly everything. If you can do it safely, give it a go. 14. Eat casseroles. Your personal lifestyle habits will make a difference in the money you have available to reinvest in your business, so do what you can to slim down on everything from your meal plans to your Saturday night adventures. 15. Rent the space you need. Less overhead = More revenue. Enough said. 16. Use energy saving options. Light , heating, or water conservation tricks are available if you think outside the box. Your utility companies often have great ideas for conserving and cutting back on how much energy you are using. 17. Keep a swear jar. Use the money you collect for a budgeting bucket. Don’t swear? Just stop using change. If your morning coffee and muffin comes to $5.01, give them $6.00 and drop the .99 into a jar. It adds up surprisingly quickly. 18. Do brown bag lunch-and-learn trainings. Catering costs too much, and does little to improve the quality of the training (or the attendees’ attention spans.) 19. Work the plan. Stick to your budget. You spent all of this time evaluating, creating, and hoping. It’s up to you to run with it and make sure it works. 20. Test and Tweak. Your budget is a living document. Pay attention. Analyze. Brainstorm potential changes. Adjust it often. A/B tests work for budgeting, too! 21. Be patient. Putting on the hat doesn’t mean you should expect to be an accountant overnight. Your strategy and delivery will get better with time. You’ll get there! In the end, budgeting for business is much like budgeting for your household; you have to know how much money is coming in, where it goes, and what you want to do with the excess. Bonus: Budgeting is good for the soul, too. Improving awareness and saving for the things you want in the future builds character and forces you to value what you choose to spend money on. Increasing your revenue and improving your life? Another win-win!