What are the benefits of using accounting software?

Keeping Track of Expenses

As a school district employee venturing into the world of side businesses, staying on top of your expenses is essential. Not only can this help you maintain a healthy budget, but it can also significantly reduce your tax liability come tax season.

Let's delve into some common and valuable deductions you can take advantage of to keep your finances in check.

Home Office Deduction

If you use a portion of your home exclusively for your business, you may qualify for the home office deduction. This is a fantastic perk that can lighten your tax burden. To qualify, the space must be used regularly and solely for business purposes.

For instance, if you set up a small office in a spare room or a designated corner of your living area, you can deduct a portion of your rent or mortgage interest. But it doesn't stop there! You can also deduct a percentage of your utilities—such as electricity, water, and even internet costs—related to that space.

For example, if your home office occupies 10% of your total living space, you could potentially deduct 10% of your utility bills as well. This deduction can amount to significant savings, especially if you work from home frequently.