This is the time of year that the Brigade Bookkeeping team works on projecting the yearly earnings of our clients. We do this in anticipation of next year’s corporate taxes, but we also do it so our clients will know if they’re making enough money or if they need to trim the fat.
By trim the fat, we mean cut business expenses and boy have we heard some good ones during the projection process. So this week, we wanted to share some of the most creative or unusual business expenses ever documented. Some we have encountered personally, others we heard through the grapevine or in the news.
You decide, outrageous or not?
- DEDUCTING A CRUISE VACATION – Unless your company is having a retreat on-board a cruise, deducting your personal cruise vacation is excessive and I think a red flag for the IRS.
- PERSONAL GROCERIES – I know business owners who do buy food for the needy or make meals once a month for the homeless, which is perfectly acceptable to write off. But personal groceries is taking it too far and if your bookkeeper hasn’t told you this, then you should get a second opinion.
- HOLIDAY PARTY – There is a portion of your holiday party that you can write off, however, it’s not usually the whole amount. Talk to your accountant or bookkeeper about this one.
- $400 WORTH OF PIZZA – The captain of a major airliner submitted a receipt for 35 pepperoni pizzas that he ordered for his stranded passengers. I think this is a perfectly acceptable expense, especially since it falls under customer satisfaction.
- PRESENT FOR DAUGHTER – Buying your family gifts from your work account is a no-no. Don’t be tempted to do it.
- COMPANY JET FOR FAMILY VACATION – Using the company vehicles for a family vacation should be considered off limits.
- $2,000 FOR ADULT ENTERTAINMENT – Some people might say this falls under customer satisfaction, but it could raise questions so you may want to stay away from expensing adult entertainment outings.
- FAMILY GET TOGETHER – Family get togethers are great, but don’t pay for them from your company expenses, unless all members of the family are company employees.
These are some of the “unique” expenses business owners have come up with. How about you? I want to hear about your company’s business expenses, email me.
Next week, we’ll talk about ways to tame your expenses gone wild. In the meantime, have a great week everyone!
