“Is This Latte a Write-Off?” Everything You Need to Know About Meal Deductions
Here’s a small bookkeeping mistake we see over and over again, that can lead to bigger issues down the line. If you’re heading to a coffee shop or restaurant to work by yourself (even if you’re taking virtual client calls from there) it’s not a business expense.
I know what you’re thinking: “But I’m working on my business… how could it not be deductible?” 🙃
Don’t get me wrong, I love working at coffee shops! But the IRS sees it differently: solo coffee shop trips simply don’t qualify as deductible business expenses.
Here’s how I handle this in my own bookkeeping:
I pay for all my solo coffee shop trips with my personal card & at the end of the month, I take an extra owner's draw for the amount I spent on my trips.
I can't pay for my solo coffees or lunches through the business directly, but I can make sure that my owner's draws are reflecting those personal expenses that help me stay productive and efficient!
So, What Meals * Are * Deductible?
While solo coffees and meals aren’t deductible (unless you’re traveling for business), there are scenarios where meals can be expensed:
Meals with clients
Meals while traveling for business
Networking meals (hint: time to schedule more coffee & coworking dates with your business BFFs 🫢)
Meals with your team for co-working or team-building (as long as they’re not excessive)
Bottom line: solo coffee shop workdays = personal expense. Meals with clients, your team, or while traveling for business = deductible.
xx, Your Numbers Gal
Still guessing on your financial reports? Let’s get to know your numbers.
You’re making money, but when it comes to your financial reports, you’re still guessing. Know Your Numbers is a workshop + beginner-friendly KPI tracker built for business owners who want to actually understand their numbers, not just look at them.
What’s inside:
Master Core Financial Concepts: Gain a clear understanding of the three core financial statements, how to set up your Chart of Accounts for insights, and essential KPIs to track for your business.
Practical Analysis & Tracking: Learn how to confidently perform variance analysis and track key metrics without overwhelm, so you can make informed decisions and grow your business.
