Summer Activities

That Can Be Used as

Business Expenses

 

 

As business owners and entrepreneurs we are all familiar with the common expenses that can be written off, but have you taken the time to consider that some of your summer activities could also be used?

As always, any “entertainment” expenses must follow Canada Revenue Agency guidelines and only a percentage of the expense may be considered deductible.  In order to claim entertainment deductions, you must always have supporting documents such as receipts, names of clients who attended and the ability to show that the expense was incurred for the purpose of potential earnings.  That being said, let’s have a look at some summer activity expenses that you may be able to use!

• Tickets to a sporting event such as baseball, football or soccer.  This may include the purchase of a private suite or box seats, should your company decide to use them for other potential clients.

 

• Golfing.  For many business owners, hitting the links for a round of 18 holes is a good opportunity for entertaining potential new clients.  Depending on the size of your company you may look into hosting a tournament and make a full day out of it.

 

• Host a day at a waterpark.  This would be geared to employees of your company and is 100% deductible as long as it is open to every employee. You can also claim food for the event, the cost of the venue and even any entertainment that you may bring in.

 

• Travel.  This expense is a little tricky to manage so it is always recommended that you consult your Bookkeeper or Accountant when it comes to travel.  For many business owners, attending conferences will often coincide with their family vacation. This is great, as your flights and hotel will be covered and you will just need to pay for your families.  If you plan on combining a business trip with your family vacation, keep in mind that any expenses being written off must only be business related.

 

One thing you always need to keep in mind when it comes to business expenses is that they must fall within a reasonable scope of your business.  The Canada Revenue Agency is very particular about these deductions and the last thing you need on your hands is an audit.  It is advised that you have a professional taking care of your books as they are knowledgeable and are up-to-date on all the current rules when it comes to deductions for your business.

Keenans Accounting Service was founded in 1998 to serve the Midland and surrounding area.  We’re a professional team who are dedicated to helping you define your bottom line. We keep a keen eye on your numbers so you don’t have to.