There is much more to transportation with bookkeeping than accounting for vehicle operations, addressing mileage reimbursements or tracking auto costs related to owners and family members. Bookkeepers must track the following too:
Meals and Entertainment
Meals and entertainment is one of the lines in the expense (Overhead) section of the profit and loss statement. For tax purposes, the IRS only allows 50% of the meals portion based on the standard 2-person lunch. In effect, the IRS is not allowing the owner or manager a deduction for tax purposes related to their respective portion of the meal.
One of the more significant expenses for the small business owners is income taxes. Since most small businesses are tax pass through entities, it is beneficial to the business to have the least amount of net income in order to reduce the tax obligations of the owner(s). This is achieved by making sure every dollar expensed is deductible for tax purposes.