Guide to Accountable Plan Expenses

As a business owner, it’s common to occasionally use personal funds for business expenses. While this might seem harmless, failing to properly track and reimburse those expenses can create problems—both in your tax reporting and in your ability to see the full financial picture of your business.

An accountable plan is the IRS-approved framework that allows you to reimburse yourself for business-related expenses paid personally. When set up and followed correctly, it ensures your business gets the deduction, you avoid unnecessary taxable income, and you maintain clean, audit-defensible records.

The following lists highlight common expenses that may be reimbursed through an accountable plan:

• Everyday business owners will recognize categories such as mileage, meals, office supplies, and professional dues.
   
• Service-based providers working from home—such as massage therapists, estheticians, or other health and beauty professionals—will see additional examples specific to their industries.
   

Use these lists as a reference to identify where you may be leaving reimbursable expenses unclaimed. Just remember: every expense must be ordinary, necessary, and properly substantiated with documentation (receipts, mileage logs, or notes on business purpose).

This guide is not exhaustive but will give you a solid foundation to start implementing an accountable plan and confidently tracking your expenses.

• Business mileage (using personal vehicle)
• Parking fees and tolls
• Ride share or taxi fares for business travel
• Public transportation costs related to business

• Business meals with clients or prospects (must document business purpose)
• Meals while traveling for business

• Portion of internet service used for business
• Cell phone service (percentage for business use)
• Office supplies for home office (printer ink, paper, etc.)
• Footprint of home office (as portion of total home footprint)
• Portion of utilities used for home office

• Small tools, equipment, or electronics purchased with personal funds but used for the business
• Business software subscriptions initially charged to personal accounts
• Postage and shipping costs
• Apps used for business and purchased with personal funds

• Continuing education courses, webinars, or workshops
• Professional dues or membership fees
• Licensing and certification costs

• Bank or credit card fees (if charged personally for business activity)
• Business gifts (subject to IRS limits)
• Advertising/marketing costs paid on personal card (e.g., social media ads, domain registration)

• Portion of utilities (electricity, water, gas) attributable to the dedicated business space
• Cleaning supplies and services for the treatment room
• Décor, furniture, or fixtures for the client space (massage table, chairs, shelving, mirrors, lamps, etc.)
• Laundry (towels, sheets, blankets) and detergent used for clients
• Security system or insurance premiums related to the home business area

• Massage oils, lotions, creams, and aromatherapy products
• Skincare, haircare, or nail products used in treatments (not retail inventory)
• Small tools and equipment (scissors, clippers, wax pots, hot stone warmers, diffusers)
• Personal protective equipment (masks, gloves, aprons)
• Towels, sheets, or other linens used for treatments

• Music subscriptions or sound equipment for the treatment room
• Candles, diffusers, or air purifiers
• Beverages/snacks offered to clients
• Magazines, books, or other waiting area materials

• Business cards, brochures, and signage
• Scheduling or booking software
• Payment processing fees (if run through personal accounts)
• Continuing education (e.g., massage CEUs, esthetics training, CPR certification)
• Professional memberships, licensing, and permits

• Website/domain fees
• Social media ads or boosted posts paid personally
• Local networking or community event fees

• Mileage when traveling to client homes (if mobile services are offered)
• Parking or tolls related to business appointments

Understanding which expenses qualify under an accountable plan is only the first step. The real value comes from designing a plan that not only satisfies IRS requirements but also works seamlessly with your business operations. That’s where I come in.

As a CPA specializing in tax strategy and financial planning, I help business owners:

• Create a customized accountable plan that fits your industry and business structure.
• Implement easy-to-follow systems for documenting and reimbursing expenses.
• Stay compliant and audit-ready with clear, defensible records.
• Integrate your plan into financial projections so you see the full picture of your business performance and tax savings.

An accountable plan isn’t just about compliance—it’s about keeping more of what you earn and reinvesting confidently in your business.

If you’re ready to put an accountable plan in place or want a second look at your current approach, let’s connect. Together, we can build a strategy that saves you money today and supports your long-term growth.