Print this out, keep it handy, and update it as you go. Organize receipts, statements, and logs by category (use folders, apps, or a dedicated business bank/credit card to make it easier). Good records make the process smoother and help ensure nothing gets missed.
1. Business Income – What to Track All Year
- All gross receipts from sales of products or services (cash, checks, credit cards, apps, Venmo/PayPal, etc.)
- Invoices you sent to clients/customers
- Bank and credit card deposit statements showing business income
- Forms 1099-NEC or 1099-K you receive
- Any other payments for your business (barter, settlements, recoveries of prior expenses, etc.)
- If you sell goods: beginning and ending inventory values, purchases of materials or merchandise, direct labor costs, and other costs that go into your products
Tip: Deposit business income into a separate account and keep personal money separate.
2. General Business Operating Expenses – Gather These Receipts/Invoices
- Advertising & marketing: Business cards, flyers, website costs, social media ads, promotions, sponsorships, printing
- Office supplies & expenses: Paper, ink, postage, shipping, small tools, cleaning supplies used in the business
- Repairs & maintenance: Fixing business equipment, vehicles (business portion), or rental space
- Utilities (if not part of home office): Electricity, water, internet, phone — business portion only
- Rent: For office, studio, storage, or other business space/equipment
- Professional services: Accountant, lawyer, consultant, bookkeeper, or other experts helping with the business
- Bank & payment processing fees: Monthly service charges, credit card swipe fees, PayPal fees
- Licenses, permits, dues, & subscriptions: Business licenses, professional memberships, industry publications, software subscriptions
- Education & training: Courses, workshops, books, or seminars directly related to improving your business skills (not personal development)
- Supplies & materials: Items used in your work or products (not for resale inventory)
- Other common costs: Uniforms with your logo, small equipment under capitalization thresholds, trade show fees
3. Vehicle & Transportation Expenses
Keep a mileage log or app records for every business trip (date, purpose, starting/ending location, miles driven). Commuting from home to a regular workplace usually doesn’t count.
Track these supporting documents:
- Gas receipts
- Repair and maintenance bills
- Insurance, registration, and license fees (business portion)
- Parking, tolls, car washes
- Lease payments or loan interest (business portion)
- If using actual expenses: all vehicle-related bills; if using standard mileage: just the log
Hawaii note: Inter-island travel for business (flights between islands, rental cars on other islands) often qualifies — keep boarding passes, receipts, and business purpose notes.
4. Travel & Meals Expenses
For business trips away from your tax home (usually overnight):
- Transportation (airfare, train, bus, taxi, rideshare, rental car)
- Lodging and incidentals (laundry, baggage fees)
- Meals: Keep receipts; note who you met with and the business purpose (meals while traveling are often limited to 50%)
- Other travel costs (tips, phone calls, internet while traveling)
Records needed: Dates, locations, business purpose, amount, and who was involved. Separate travel from regular meals.
5. Home Office Expenses (If You Use Part of Your Home Exclusively for Business)
Only if the space is used regularly and exclusively for business (principal place of business, client meetings, etc.).
What to track:
- Square footage of the business area and total home
- Mortgage interest or rent paid for the home
- Homeowners/renters insurance
- Utilities (electricity, gas, water, internet, phone — business percentage)
- Repairs and maintenance to the home (business portion)
- Property taxes (business portion)
Simplified option: Some people use a flat rate per square foot — we can discuss if records support it.
6. Insurance & Health-Related
- Business liability, property, malpractice, or workers’ compensation insurance premiums
- Vehicle insurance (business portion)
- Self-employed health insurance premiums for you and your family (if eligible)
7. Employee & Contractor Payments (If Applicable)
- Wages, salaries, bonuses paid to employees (plus any W-2s issued)
- Payments to independent contractors (track 1099s you issue if required)
- Employee benefits (health insurance, retirement contributions you pay)
- Payroll taxes or unemployment taxes you paid
8. Interest & Taxes Paid for the Business
- Business loan or credit card interest
- Business property taxes
- Certain state/local taxes or licenses directly tied to the business
9. Equipment, Furniture & Assets (Depreciation or Section 179 Items)
For items lasting more than one year (computers, furniture, tools, machinery, vehicles):
- Purchase date, cost, and description
- Receipts and invoices
- Any improvements or repairs that add value
- How it’s used in the business
Track these even if we handle depreciation calculations.
10. Other Possible Deductible Items
- Bad debts (if you had to write off money owed to you that was previously included in income)
- Retirement plan contributions you made for yourself or employees (SEP, SIMPLE, etc.)
- Startup costs from when you first opened the business (in some cases)
- Gifts to clients (with limits and documentation)
Recordkeeping Tips to Make Our Job Easier
- Save all receipts, invoices, bank/credit card statements, and canceled checks.
- For every expense, note the business purpose if it’s not obvious (write it on the receipt).
- Use a separate business checking account and credit card when possible.
- For vehicle use: Maintain a contemporaneous log (apps like MileIQ work well).
- For travel/meals: Document date, place, amount, business discussion, and people involved.
- Digital is fine — scan or photograph paper receipts and organize by category/year.
- Keep records for at least 3–7 years (we recommend 7 for safety).
- Review and organize everything quarterly so year-end isn’t overwhelming.
Hawaii-Specific Notes:
- Track inter-island business travel carefully (flights, hotels, rentals, meals) — Hawaii’s geography makes this common.
- Vehicle actual expenses can be especially helpful here due to higher gas and maintenance costs.
- General Excise Tax (GET) you pay or collect is separate, but keep related records if they affect your business expenses.
Bring everything organized by these categories (or upload to a shared folder) when we start your taxes. This checklist helps catch common items and reduces back-and-forth questions. Questions? Reach out anytime — we’re here to make tax season less stressful for Hawaii business owners.