Most business owners are already paying out of pocket for expenses that support their business – from internet and phone bills to mileage, travel, and home office costs. But here’s the part many miss: there’s a smarter, IRS-approved way to reimburse those costs – and reduce your tax burden in the process.

It’s called an Accountable Plan – and it’s one of the simplest tax strategies more owners should be using.

What is an Accountable Plan?

An Accountable Plan is a formal reimbursement arrangement between a business and its employees (including owners) that allows tax-free reimbursement for qualified business expenses. The business gets to deduct the expense, and the person receiving the reimbursement doesn’t have to report it as taxable income. It’s a win-win.

With an accountable plan in place, reimbursements are treated differently than compensation. The business reduces its taxable income, while the employee (or owner) receives those funds tax-free – as long as they provide proper documentation and submit within a reasonable timeframe.

Why It Matters

Without an accountable plan, reimbursements are often treated as taxable wages, which means:

• The business still deducts the expense, but
• The recipient pays income tax (and potentially payroll tax) on the reimbursement

That’s money lost unnecessarily – and it adds up over time.

What Can Be Reimbursed?

A wide range of common business-related expenses can be included in an accountable plan, such as:

• Home office internet or utilities
• Business use of a personal cell phone
• Mileage or actual vehicle expenses
• Travel, meals, and lodging for business purposes
• Office supplies or equipment purchased personally

How We Help

Our tax consulting team works with business owners to evaluate their current reimbursement processes, identify missed savings opportunities, and implement IRS-compliant accountable plans that are simple and effective. Your accountable plan shouldn’t just be another great tax strategy, but it should be tailored to your broader financial goals. We are not here to simply implement, but to educate.

A Missed Opportunity for Many

Accountable Plans are often overlooked simply because no one has ever pointed them out. But they’re an easy win – and when properly implemented, they can generate thousands in tax savings over time.

Whether you're a solo business owner, managing a small team, or just looking for ways to run more efficiently, this strategy is worth a closer look.

Want to see what this could mean for your business? Our team is here to help. Let’s talk about how proactive tax planning can help you keep more of what you earn.