Here’s Everything You Need to Know About Marketing Tax Deductions
According to a recent study, the average American spends 6 hours and 42 minutes online. What does that mean to a business owner? It means if you want to find your ideal customer for your deck-building company, then you will probably have to reach them on their phone, tablet, laptop or desktop computer.
Digital marketing, when it follows best practices, plays an important role in helping you reach your target audience when they are searching for deck building or deck remodeling solutions. But, what will a digital marketing plan cost you? Perhaps less than you think.
While digital marketing will help you locate your target market and deliver your message quickly and effectively, did you know every April 15th, you’ll be able to deduct the costs of your digital marketing expenses!! This includes a variety of costs, from website fees to content writers to online ad placements and more. They all are eligible marketing tax deductions your company can claim when it files its taxes.
Even so, not all sales and marketing expenses can lower your tax obligation. A good marketing agency will help you see ways you can turn your average marketing expense for your deck-building company into a tax break that can help you keep more of your money!
With technological advances, it is critical to the success of deck contractors to use the internet to raise brand awareness so your company is top of mind with potential clients. It’s also vital to create a plan for your marketing expenses when it comes to your business.
What is Considered 100% Tax-deductible?
Your expense must be “ordinary and necessary” to qualify as an advertising expense, according to the IRS, in order to qualify as an advertising expense tax deduction. This designation applies to digital marketing, too. So, what constitutes an “ordinary” expense? It’s an expense that is a commonly accepted practice for advertising. And, what about a “necessary” expense? If it’s vital to the success of your deck contracting business.
The internet, along with mobile phones, tablets, and wireless connectivity, have changed how businesses connect and reach their audiences. This is where digital marketing plays a vital role. It creates engagement between your business and your audience in ways traditional marketing could never have imagined. Digital marketing can create interactive and immersive experiences for your audience that makes them feel engaged with your products, services, company, team, and even other consumers.
Today, your company’s website would be deemed “ordinary” because most businesses have established a web presence. Additionally, your website would be necessary so you can compete with other contractors in your area and niche.
Consequently, your website (and related software, training, and licenses you buy for it) would be considered an advertising tax deduction for your company. When done properly and strategically, digital marketing will not be a money-eating expense. Rather, it will be an investment that pays off for you.
Common Digital Marketing Expenses to use for Tax Deductions
Website Costs and Fees
There was a time when a website was not needed. That’s no longer the case. You need it to get your name and message out. When you consider the expenses of software and website hosting, they can add up. Thankfully, you can deduct them on your tax returns. It is 100% allowable.
Content Creation & Digital Marketing Services
Many business owners choose agencies like ours to outsource some of their digital marketing work. When you hire digital marketing agencies, web designers, content writers, developers, search engine optimization consultants, project managers, and marketers there’s no question it saves time and allows business owners to focus more on their company’s operations. But, did you know these expenses amount to more tax deductions? And, if you work with a diversified marketing agency to manage your entire marketing strategy, content marketing, pay per click campaigns and organic search, you should figure on seeing more profits that will benefit your bottom line. A marketing agency should ensure you get better results, save you more time, and help your business grow!
Social Media Subscriptions and Memberships
Social media has changed the way consumers interact with products, services, and other consumers. (Did you know many companies use Twitter for customer service). When you subscribe to social media scheduling tools, it can help you stay organized as you plan posts to Instagram, Facebook, Twitter, or LinkedIn. Investing in a premium membership on a social media platform like LinkedIn, it can lead to more awareness for your business. It might also be a good investment, too. Also, don’t forget about the outside people you hire to manage your social media marketing. Their monthly retainers are likely to be tax deductible, too!
Continuing Education and Training
In the immortal words of Ferris Bueller, life moves pretty fast. But nothing moves faster in this day and age than technology. When you upgrade software, it tends to lead to more efficiency for your business. But, it will also require more training and education for your team to be proficient when using these technologies. Thankfully, these expenses can also be written off when you do your taxes.
While certain advertising and marketing expenses such as roadside billboards and television ads are tax-deductible, don’t forget about looking at some of the ways you can use digital marketing activities to grow your deck contracting business. You can start deducting advertising expenses spent online, as well!
What all this means is it’s possible to reduce your tax obligations while, at the same time, growing your business. But, you will have to know how to create and implement an effective digital marketing plan.
Are you wondering how your company can benefit from an effective marketing plan and take advantage of those tax deductions? Deck Builder Marketers makes it easy for our clients to create a plan for success. We offer a variety of marketing services from helping build your marketing infrastructure to managing your digital marketing campaigns for a higher ROI.
Schedule a free, no-obligation consultation today to learn how our proven 3-step Marketing Success Framework will yield more return on your marketing investment! It’s never been more vital to have an effective marketing plan so you can be sure you’re getting the most juice out of the squeeze!