What Counts as a Business Expense? (A Guide for Solo Operators & Small Service Businesses)
One of the best parts of running your own business? You can write off legitimate business expenses and lower your taxable income.
But what exactly counts as a business expense?
If you're a solo cleaner, handyman, pressure washer, inspector, photographer, or any other service-based business owner, this guide will walk you through what you can (and can’t) deduct — so you don’t miss out or raise red flags.
What Is a Business Expense?
A business expense is any cost that’s:
Ordinary (common in your industry), and
Necessary (helps you run or grow your business)
Translation: If it helps you do your job, earn income, or run your business — it probably counts.
Common Business Expenses You Can Deduct
1. Tools & Equipment
Power washers, drills, vacuums, ladders, etc.
Replacement parts or accessories
2. Supplies & Materials
Cleaning products
Paint, caulk, brushes
Safety gloves, trash bags, rags
3. Vehicle Expenses
Gas, oil changes, tires (if used for business)
Mileage (if you’re not deducting actual expenses)
Vehicle depreciation (for business-use vehicles)
🛻 Tip: Keep a mileage log or use an app like MileIQ or QuickBooks.
4. Marketing & Advertising
Facebook/Instagram ads
Flyers, yard signs, business cards
Website hosting or domain
5. Software & Apps
QuickBooks, Jobber, Joist, etc.
Scheduling, invoicing, or CRM tools
Mileage trackers or receipt organizers
6. Insurance
General liability
Commercial auto insurance
Business property insurance
7. Home Office (if applicable)
A portion of your rent, utilities, or internet if you work from home
Must be used exclusively for business
8. Professional Services
Bookkeeper or accountant
Legal fees
Business coaching or consulting
9. Phone & Internet
Business phone line
Portion of your personal phone plan (if used for work)
10. Education & Training
Online courses
Certifications
Industry-specific workshops
⚠️ Expenses That Don't Count
Personal groceries or meals (unless it’s a legitimate business meeting)
Clothes (unless it’s protective gear or branded uniforms)
Personal travel or vacations (even if you thought about work while on the beach 😉)
Fines, penalties, or personal legal fees
Tips to Stay Audit-Ready
Save receipts (paper or digital)
Keep your business and personal finances separate
Use a bookkeeping system (like QuickBooks) to track expenses
Categorize everything consistently
Final Thoughts
Knowing what counts as a business expense isn’t just about tax deductions — it’s about running a smarter, more efficient business.
If you’re ever unsure about whether something qualifies, talk to a bookkeeper or tax pro. It's better to ask than to guess.
Want help organizing your expenses or making sure you’re not missing write-offs?
I offer a free Bookkeeping Health Check — let’s make sure your business is set up right.
Contact us by clicking here
Or send us an email at David@RuckandReconcile.com
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And as always, thank you for reading and we’ll see you next week!