Prepare Your Business for 2025: Taxes for Entrepreneurs & Deducting Work Travel
As a travel entrepreneur, there’s a lot of expenses that are involved in serving our travel public relations and travel planning clients. We have lots of conferences, networking events, subscriptions, media monitoring, payment tools, educational trips, and much more. When I started out about nine years ago, taxes, LLC, S-Corp, trademarks, insurance, etc. was an absolute minefield. Once I got set up properly, things started to become a lot easier and you save a lot of your money that you’ve invested into the success of your business. Let’s kick this off with the infamous write off scene in Schitt's Creek…
My friend introduced me to this accounting firm where I eventually connected with my guy now, who has been steadfast with me for years now, even helping me through the challenging and scary process of buying a home as a single, travel business owner during Covid. Look no further than Diogo if you need help and don’t want to feel daunted anymore. You don’t need to be a massive business to enlist a professional, and I’d urge you to do so. Protect yourself and your money.
Meet accounting whiz
Diogo Azevedo!
My name is Diogo and I am a seasoned accounting professional with a Bachelor of Science Degree in Accounting from Rider University. With over 12 years of experience, I specialize in Personal Tax Preparation, Business Tax Return Preparation, bookkeeping and Advisory. Notably, I demonstrate a dedicated commitment to crafting tailored tax strategies that align with each client's unique financial goals.
You can find Diogo through is company site or ask me to connect you: DCB Bros LLC.
How can entrepreneurs enlist you to help with complex tax filings as well as setting people up with the right business type?
The best way to get started is to schedule a meeting with me! We’ll go over your business idea, goals, and what you're hoping to achieve. From there, I’ll help you figure out the best business structure—whether that’s a sole proprietorship, LLC, or S-corp—and handle the formation paperwork. I’m also here to guide you through the tax process, from filing to monthly bookkeeping and making sure you’re saving as much as possible on your business expenses throughout the year.
What are the things you tell first-time entrepreneurs in order to set themselves up for success with their taxes?
First things first: Make sure you consult with a tax advisor and have the business set up properly. Second thing: Keep personal and business finances separate! It’s easier to track your income and expenses when you have a dedicated business bank account. I always recommend setting up solid accounting tools (QuickBooks, FreshBooks, or even a simple spreadsheet) to stay organized from the start. And don’t forget about tax deductions! Even if you're just starting, knowing what you can write off—like travel expenses, equipment, and subscriptions—will help you keep more of your hard-earned money.
How do people write their work travel off properly?
Writing off travel expenses is simple as long as it’s ordinary and necessary to your business. So, if you’re flying somewhere to attend a conference, meet a client, or create content, you can deduct things like flights, hotels, meals (50%), taxis, and even tips. Just make sure you keep all receipts and note the business purpose of each trip. Tracking everything with an QuickBooks or spreadsheet can really save you time later!
What are things that people can write off that they might not know?
There are some cool, often overlooked deductions that many entrepreneurs miss! Here’s a quick list:
Home Office: If you work from home, you can write off part of your rent, utilities, and internet.
Subscriptions: Business-related software, online courses, and industry magazines can all be written off.
Meals: When you're on a business trip or meeting with clients, 50% of meals can be deducted.
Equipment: Cameras, laptops, and even your phone, if used for business, can be deducted.
Marketing Costs: Running ads, influencer partnerships, and even business cards are all deductible.
Do you need to save receipts or provide any sort of proof/information?
Yes, you absolutely need to keep receipts! Especially in the travel business where some of the expenses can be deemed personal by the IRS if not documented properly. It doesn’t matter if it’s a paper receipt or a digital one. As long as it’s clear and shows what you spent it on, you’re good to go. I recommend taking photos of receipts right away (apps like Expensify and QuickBooks make this easy) and noting what each expense was for. For travel, keeping a log of the trip's business purpose is also key—think of it like a mini journal for your business expenses.
What are the best tools entrepreneurs use to stay organized or you recommend?
The best tool to stay organized is QuickBooks or another accounting platform. There are other tools like Expensify that help you keep track of the expenses too.
When’s the best time to organize business expenses?
It’s best to stay on top of your business expenses throughout the year, rather than leaving it all for tax season. I recommend setting aside time at least once a week to update your records, categorize your expenses, and reconcile your bank accounts on a monthly basis. This will make tax filing much smoother and ensure you don’t miss any deductions. Procrastination can lead to missing out on valuable tax savings, increase the chances of errors or audits and increase your bill with your tax advisor. The second option is to reach out to your tax advisor and see if they recommend a bookkeeper or if they offer bookkeeping services. If they don't, we do and we can help keep you organized!
Any tips or recommendations for paying quarterly or monthly paid taxes?
Paying quarterly taxes doesn’t have to be stressful, but planning is key! A good rule of thumb is to set aside 25-30% of your income every month for taxes. You can make things easier by putting that money into a separate account, so it doesn’t get spent. Also, don’t forget to mark your calendar for tax deadlines—I’ve seen a lot of people get caught off guard by this! If you’re unsure of how much to pay, there are tools and calculators to help you estimate your quarterly taxes, or you can always ask me to help you out.
What are the key dates to reach out to your accountant and file taxes?
Here are some key tax dates to remember:
January 15: 4th quarter estimated tax payment deadline.
April 15: Tax filing deadline for the previous year.
June 15: 1st quarter estimated tax payment deadline.
September 15: 3rd quarter estimated tax payment deadline.
October 15: Extended deadline for filing taxes if you’ve filed for an extension.
I always recommend reaching out at least a month before the filing deadline to make sure everything’s in order.
Since becoming an entrepreneur, I can’t even fathom doing my taxes without you. What are the things you’ve learned or could suggest to other travel professionals like me?
Thank you for the compliment! I’ve learned that keeping track of business-related travel expenses is essential. Whether it’s a flight out of the country with a big group or big dinners in other states with other travel professionals, there are so many opportunities for deductions. One big tip I have for anyone in the travel industry is to make sure to keep personal and business travel separate. If you’re combining the two, only deduct the business-related portion of the trip. And finally, organizing everything early (instead of waiting for the last minute) will save you time, stress, and probably a little bit of money! If you have solid systems in place for tracking expenses, tax time becomes way less overwhelming.
For any detailed questions or if you wish to enlist Diogo, please let me know. He’s kept me sane as I navigated my business, and think everyone needs a Diogo in their life if they are running a business. As small businesses, he’s made it very approachable and he has great pricing if you need an acting CEO or more hands-on service. Good luck out there and write off, accordingly!
