What Is a Deductible in QuickBooks?
Quickbooks is a computer software program for business accounting. The program helps businesses keep track of expenditures, deductibles and maintain the credits and debits. Understanding what constitutes as a deductible in Quickbooks helps companies realize more money on their tax returns.
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Function
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According to the Internal Revenue Service (IRS), business expenses that are necessary and ordinary qualify as deductibles. Businesses cannot list personal expenses as deductibles and businesses must be careful to know the distinction between a business expense and a personal expense.
Features
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In Quickbooks, users are allowed to list business expenses as deductibles, such as travel expenses. Other deductibles include employee bonuses, office supplies, health insurance, business entertainment, hiring activities, retirement plans and long-term assets.
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Warning
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Not every home-based business can deduct the rent or mortgage as a business expense. Different types of home-based businesses qualify for different types of deductibles.
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