BENCH SMALL BUSINESS GUIDES Step 6. Organize potential deductions The IRS’ golden rule on deductions is that they must be both ordinary (a common expense in your field of work), and necessary to your business. For example, pens would be an ordinary expense for a writer, but a $900 pen might not fall into the category of “necessary” (well, it definitely wouldn’t). Even when an expense is ordinary and necessary, it may not work out as a one-to-one deduction on your taxes; just because you mostly work from your dining room table, doesn’t mean that you can deduct your entire monthly rent. Luckily, the IRS has made a comprehensive guide on business deductions. Step 7. Make it a habit It’s easy to fall behind on your bookkeeping when you’ve got other things happening. To stay on track, try setting a finance date with yourself (or your business partner) once a month to get it done. If you do happen to fall behind, Bench can help you get caught up in no time. 12