Common Startup Deductions
These are some of the most frequent and impactful deductions for tech and SaaS startups. Are you tracking all of them?
Your monthly SaaS bills (e.g., Slack, GitHub, Figma, Founder's Wizard!) are fully deductible.
Computers, monitors, and other equipment needed to run your business.
Costs for Google Ads, social media campaigns, content creation, and SEO.
Fees paid to lawyers, accountants, and consultants for business matters.
Rent for your office and associated utility bills. A portion of your home can also be deducted if you have a dedicated home office.
Flights, hotels, and meals for business-related trips.
Best Practices for Deductions
Claiming deductions correctly is just as important as knowing what to claim.
Keep Meticulous Records
The IRS requires documentation. Use a tool to capture receipts and categorize every single business expense. Don't mix business and personal funds.
Understand 'Ordinary & Necessary'
To be deductible, an expense must be both common ('ordinary') and helpful ('necessary') for your type of business. This is the IRS's primary test.
Consult a Professional
This guide is for informational purposes. Always consult with a qualified tax professional who can provide advice tailored to your specific situation.
Instead of scrambling at the end of the year, Founder's Wizard helps you build a deductible-ready business from day one.
- Automated Categorization: We help you categorize every expense into standard business and tax categories as it happens.
- Receipt Capture: Attach digital receipts to every expense transaction for an unbreachable audit trail.
- Tax-Ready Reports: Generate reports that summarize your expenses by tax-deductible category, which you can hand directly to your accountant.
Stop Leaving Money on the Table
Properly tracking your expenses and deductions can save you thousands of dollars a year. Founder's Wizard makes it effortless.