Business expenses represent the standard outgoing costs associated with running your business. These are the payments you make to suppliers and other organisations in order to conduct your business and trade with your customers. Importantly, in Australia, you can claim most business expenses as tax deductions to reduce your taxable income at the end of the tax year. As per Australian Tax Office guidance, you can claim business expenses in your tax return as long as:
- they relate directly to earning your income
- the expense must have been for your business, not for private use
- if the expense is for a mix of business and private use, you can only claim the portion that is used for your business
- you have records to substantiate what you claim.
Importantly, using Sole, you can easily record and manage your business expenses throughout the year by adding them to your account manually, or by matching outgoing expenses from your bank feed. You also have the ability to take a photo and retain evidence of any tax receipts to help you substantiate your end of year claims.
Where to find out more:
- Sole’s Expense Help Articles (You will need to create a support log in)