Understanding Business Expenses: Where do I find out what they are?

As a self-employed individual or contractor, grasping what counts as a business expense is crucial for sound financial management. Recognizing and correctly categorizing business expenses can significantly affect your taxable income. This understanding not only allows you to lower your tax burden but also empowers you to make strategic decisions for your business.

Business expenses refer to costs incurred while operating your business and can be tax-deductible. This means these expenses can decrease your total taxable income, enabling you to retain more of your hard-earned money. However, not every expense qualifies as a business expense, and distinguishing which costs do can be a challenge.

Knowing what qualifies as business expenses is vital for self-employed individuals and contractors. By understanding various expense types and keeping thorough documentation, you can maximize your tax deductions and enhance financial management.

Stay organized with your records to make tax time smoother. By applying these guidelines, you can navigate the complexities of business expenses with confidence, allowing you to concentrate on what you love: running your business.

Find out about your business expenses right from the CRA website at this link:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html