The changes in tax law greatly impact what can be deducted from the meals and entertainment expense category. The old law allowed a 50% deduction for business-related meals and entertainment expenses and a 100% deduction for meals provided for employees at the employer’s convenience while on the premises of the employer’s place of business.
However, the new tax law states no deduction for business expenses related to entertainment!
All entertainment expenses, including tickets, food, beverages, and admission fees, are no longer deductible. This includes meals with clients, prospects, and referral sources. However, some deductible meals, such as meals while traveling on business out of the area and meals provided by the employer at their place of business for their convenience, are still 50% deductible.
These changes in the tax law mean that bookkeeping and expense coding need to be rethought and adapted. At Zumifi, we can guide you and work with you to set up new expense categories to accommodate these changes to the law. In addition, we ensure that you leverage proper coding to optimize your tax liabilities and deductions!
To stay on top of tax law changes, Zumifi offers ongoing bookkeeping services that manage your financial activity with a complete turnkey approach. We deliver solid books that provide key real-time information accessible anywhere, anytime, on any device. In addition, we create a custom combination of online, cloud-based tools, including QuickBooks Online, Bill.com, Box.com, and other unique combinations to leverage technology truly. This enables us to fully automate your system, eliminate data entry, and simplify and facilitate your bookkeeping. And we ensure accuracy and completeness so that every dollar counts.
Zumifi’s bookkeeping services include accounts payable, accounts receivable, payroll, reconciliations, and reporting. We can also help you navigate the changes in tax law and ensure that your books are accurate and up to date.
Contact Zumifi today to learn more about our bookkeeping services and how we can help you manage your financial activity in these changing times.