Advertising tax deduction - how you can reduce business tax and increase revenue.

Are you looking to lighten up your tax burden for the 2009 year? Utilizing the advertising tax deduction can help you reduce business tax and at the same time help you drum up new business and increase revenue.

Are you choosing EMOTIONAL business expenses?
Pull up last years Schedule C and take a look at the tax deductible business expenses available - office expense, rent, business licenses, utilities, legal and professional services, business property, vehicles, and so on. Even business-related travel, meals, and entertainment are generally accounted for, because let's face it, WE ALL HATE PAYING TAXES, and we're willing to write off whatever we can in order to reduce our taxable income.

Now consider for a moment how your emotions may have played a role in some of your tax-write off decisions. I know that may be a far-off concept to grasp, but think about it. How many times throughout the last year have you rationalized spending money on a perhaps unnecessary business expense likely just BECAUSE it also happened to be a tax write-off. I know that I've definitely thought to myself - "Hey, this is a business meeting and I'm going to write it off, might as well treat myself to the big steak and the nice wine." Why do you suppose we do that? Because the perk of not having to pay taxes on business-related expenses is a great thing, and as business owners we feel good that sometimes we don't have to. It's a benefit that only we have and there's a sense of pride and luxury that come along with taking advantage of this part of the tax system.

Now I'd hate to be the bearer of bad news, but, sometimes, that very good feeling actually causes us to go out MORE OFTEN and SPEND MORE on business-related expenses (luxuries.) It's a fact of emotionally-tagged advertising—when you feel like you're truly getting a good deal you're inclined to spend more and more often because you only see the benefits, and the pros outweigh the cons. My argument is this—what if you could feel good that you are maximizing your tax-deductible business expenses, while at the same time reap the rewards of more revenue and business growth, would you not be interested?

Advertising is one of the few OPTIONAL tax deductible business expenses.
We often don't even realize this fact, or recognize the significance of this statement, but there it is, Part II, Expenses, on the very first line - Advertising. Now, why do I say that advertising is an OPTIONAL business expense? Well, everything else isn't really a choice. Office expenses, rent or mortgage, travel, contract labor, legal and professional fees, these are all necessities. If you're in business you're going to have these expenses. You don't have much of a choice, so it's nice that these a tax deductible. But besides the necessity expenses and the previously mentioned emotionally-tagged expenses, there is one other option—Advertising.

Ironic that advertising is an optional expense, when it is the BEST OPTION.
During the start up phase for small businesses, and during economic struggle for all businesses, advertising often becomes an optional-I'll-do-it-when-I-can-afford-it type of expense. This is flawed thinking because it is necessary to have a consistent advertising presence in order for your company to be successful long-term. If you've already read my article Reasons to Advertise - Top 9 Reasons you should Advertise then you already know WHY you should be advertising. Afterwards, I suggest you read my article How much should you spend on advertising to get effective results - the easy answer for you to get an idea of what percentage of your revenue you should be investing in advertising. But if you only remember one thing from this article remember this—Advertising is the only business expense that is not an absolute necessity, is not an emotionally-charged impulse expense, and is often an "optional-maybe-later" expense—yet—it is the ONLY expense that has the potential to INCREASE YOUR REVENUE!! All other business expenses are just that—expenses.

Bottom Line?
Advertising is the ONLY expense that has the potential to INCREASE YOUR REVENUE!! All other business expenses are just that—expenses. Advertising is a tax-deductible business expense that can reduce business tax, and, increase revenue. This includes EVERYTHING advertising related from design fees to printing, direct mail lead purchasing, website design and hosting, internet marketing, etc. So get in your end-of-the-year sales and promotions now so you can take advantage of the holiday shopping season, and get in any last end of the year advertising tax deductions.

To success—and to reducing pesky taxes,
Brian Holmes

Effective Advertising Solutions' custom billing center stores a copy of all of your invoices and keeps a record of all of your payments to us. To quickly and easily view all of your tax deductible advertising expenses just log into our billing center to view, print, or download a .csv of your account statement for the year (or month or quarter for preparing estimated taxes.) In addition, you may also call your EAS customer service representative to request a custom report of your account expenses any time, at no charge.

Brian S. Holmes is the President/Creative Director for Effective Advertising Solutions LLC, an advertising agency/design firm. EAS is a small, personalized firm that helps small businesses become successful by working with any size advertising budget to make strategic decisions for how to position and brand the company, decide where they should advertise, design effective results-oriented advertisements, and help manage their marketing program. Check out his web site at www.EASinteractive.com