AP Startup Hub

Write‑Offs: Simple Guide to Boost Your Tax Savings

Ever wonder why some business owners seem to pay less tax even though they earn the same as you? The secret is often a solid use of write‑offs. A write‑off is simply an expense the tax authority lets you deduct from your income, lowering the profit you’re taxed on. The lower your taxable profit, the less tax you owe. It sounds easy, but many entrepreneurs miss out because they don’t know what counts or how to keep proper records.

Common Write‑Off Categories

Most small businesses can claim a handful of everyday costs. Here are the ones that show up most often in 2025:

  • Office supplies: pens, paper, printer ink – anything you use to run daily operations.
  • Travel and mileage: business trips, client meetings, and the kilometers you drive for work. Keep a logbook or use a GPS app for proof.
  • Software and subscriptions: accounting tools, cloud storage, SaaS platforms – as long as they support your business.
  • Professional fees: accountant, lawyer, or consultant charges that help you stay compliant.
  • Marketing spend: ads, website hosting, and even the cost of a coffee you meet a client over.
  • Home office deduction: if you work from a dedicated space at home, you can claim a portion of rent, utilities, and internet.

These categories cover the basics, but your industry may have unique write‑offs. For example, a food‑service franchise can deduct kitchen equipment, while a tech startup can write‑off R&D expenses.

How to Record and Claim Write‑Offs

Claiming a write‑off isn’t just about knowing it exists; you need solid paperwork. Follow these steps to keep things clean:

  1. Save every receipt: Digital copies are fine. Use a phone app to snap photos and store them in a dedicated folder.
  2. Tag each expense: When you log a purchase in your accounting software, assign it to the correct category – supplies, travel, etc.
  3. Use a simple ledger: Even a spreadsheet works. Include date, vendor, amount, and why it’s a business expense.
  4. Separate personal and business costs: A mixed‑use credit card invites audit trouble. Keep a business card for all write‑off‑eligible purchases.
  5. File the right forms: In the U.S., Schedule C handles most small‑business deductions. In India, look at Section 37 of the Income Tax Act and claim them in your Profit & Loss statement.

Don’t wait until tax season to organize. Updating your books weekly saves you from a frantic scramble and reduces the chance of missing a deductible expense.

Finally, watch out for common traps. Claiming personal vacations as business travel, inflating mileage, or double‑counting the same expense can trigger an audit. If you’re unsure, a quick chat with an accountant can save you headaches later.

With the right mindset, write‑offs become a regular part of your cash‑flow routine rather than a once‑a‑year surprise. Start today: review your last month’s spending, pull out the receipts, and mark the eligible ones. You’ll see an instant reduction in your taxable profit and, more importantly, a clearer picture of where your money is really going.

Ready to make the most of every dollar? Keep these tips handy, stay organized, and let your write‑offs work for you, not against you.