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What Accounting Expenses Can I Deduct?

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Question: What Accounting Expenses Can I Deduct?

Answer:

Accounting expenses, auditing expenses, and bookkeeping expenses are all deductible business expenses. Here is a more detailed list of accounting-related expenses you can deduct:

  • Bookkeeping expenses
    You can deduct all expenses for bookkeeping, including those for a bookkeeper, or for bookkeeping and accounting software to help you or an employee do your bookkeeping.


  • Accountant/CPA/Financial Adviser The services of an accountant, CPA, or financial adviser for review of financial statements or business (but not personal) financial planning.
  • Auditing
    If you are a public corporation, fees for an auditing firm.
  • Tax Strategy and Tax Preparation
    The services of a CPA, tax attorney, or tax adviser, for tax strategy and tax preparation, including preparing and filing forms.
  • Other Tax Issues
    Services of a CPA, Enrolled Agent, or tax attorney to prepare for and attend tax audits and investigations, to represent you before the Internal Revenue Service or Tax Court.
  • Costs of Defense
    You may also deduct your costs for travel and other expenses to defend against the IRS or state agency audits or challenges, as well as expenses you paid to advisers for their expenses.
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