Tax categories for small business expenses provide businesses with a means to accurately categorize and differentiate their various costs. By utilizing effective tax categories, businesses are able to ensure that they are filing their taxes properly and can take full advantage of the deductions available to them. Tax categories include the cost of goods sold, employee wages and benefits, office space and supplies, advertising, travel, marketing, shipping, utilities, legal fees, software, machinery, and repairs. Each category provides an explanation of the accompanying deduction so that claims can be made accurately and efficiently. Put simply, tax categories for small business expenses make sure that your business is compliant with current taxation practices and gives you the best chance at success.