As a small business owner, it’s often all too easy to overlook tracking the daily expenses you accumulate. The money you spend on parking, for example, may seem like a minor expenditure, but all those costs add up at the end of your fiscal year. Keeping on top of your daily expenses on a regular basis sets you up for a smooth process when it comes time to claim your tax deductions.
## Mileage Expenses
One important expense to keep an eye on is mileage driven to and from customer or supplier locations. In most provinces, the standard [mileage deduction](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-allowances/automobile-allowance-rates.html) in 2018 is 55 cents for the first 5,000 kilometres you drive, which drops to 49 cents per kilometre for mileage over 5,000 kilometres. While you may not travel far each day, those totals can add up over the course of a year. These amounts can change from year to year, so it’s a good idea to check on the current rates.
## Home Office Expenses
Perhaps you work from home. In that case, you’re allowed to deduct expenses for your home, such as mortgage interest, repairs, and insurance to help minimize your tax liability. It can also pay off to keep track of all your other office-related expenses, including office supplies, postage, internet access, and phone expenses. Every little bit adds up at tax time.
## Tracking Daily Expenses in Other Categories
Take a look at the possible tax deductions the Canada Revenue Agency (CRA) allows for [business expenses](https://quickbooks.intuit.com/ca/resources/budgeting/5-overlooked-business-expenses/) to make sure you’re tracking everything that’s likely to matter at tax time. Among the expenses you should capture are:
* Client hospitality: This category includes the cost of lunch with clients, entertainment at conventions or industry-related events, and even thank-you gifts to clients. What the CRA allows as a tax deduction in this category isn’t always straightforward, so be sure to consult with your tax accountant or the [CRA’s online guidance](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/industry-campaign-approach/meals-entertainment-expenses.html).
* Legal fees: Whether you have ongoing legal expenses or just need contracts reviewed on a one-off basis, your legal fees are deductible, and you should track them all.
* Licencing and certifications: These expenses typically occur only once a year or even less frequently, so they’re easy to miss when you’re compiling your expenses, but if you track expenses daily, you’re likely to capture these.
## Apps for Tracking Daily Expenses
There are plenty of [expense-tracking apps](https://quickbooks.intuit.com/ca/resources/expenses/four-tools-for-tracking/) available to make it easier than ever to track your daily expenses. Check out [Nexonia](https://apps.intuit.com/app/apps/appdetails?shortName=nexonia-expense-reports&), which allows you to photograph receipts for easy cataloguing and syncs automatically with QuickBooks Online. [Minute7](https://www.minute7.com/), which also syncs with QuickBooks, allows you to track time as well as expenses, and [MileIQ](https://www.mileiq.com/) handles the complex task of tracking your mileage and auto expenses.
QuickBooks Online offers a convenient and easy way to record any ongoing expenses you may incur on a daily basis. With [QuickBooks Online](https://quickbooks.intuit.com/ca/track-income-expenses/), you can organize your business finances and stay ready for tax time. Try it free for 30 days.