🧾 What’s Deductible Under the Cash Method?
(And Why Timing Is Everything)
So you’ve made the switch (or realized you already qualify) for the cash method of accounting.
Thanks to OBBB, nearly all SMBs can now use it.
But here’s what matters next:
👉 Knowing when your expenses are deductible.
💡 The Golden Rule:
You deduct it when you pay for it.
That means:
A bill you paid in December? 💥 Deducted this year.
A bill you receive in December but pay in January? 📆 Deducted next year.
Simple, but powerful.
🛠️ What Can You Deduct (When Paid)?
💻 Equipment & tech
🚗 Vehicle expenses
🛠️ Repairs and supplies
📱 Subscriptions and software
💼 Professional services
🍕 Business meals
🧾 Payroll, contract labor
💡 Utilities, rent, insurance
As long as it’s an ordinary and necessary business expense — and you paid for it — you can deduct it now.
🤖 Hedgi Automates All of This
No spreadsheets. No shoebox of receipts.
When you swipe your card or connect your bank:
✅ Hedgi logs the payment
✅ Applies the correct category
✅ Books the deduction — cash method–style
Bonus: You can even ask the AI assistant
“Is this Starbucks charge deductible?”
And get a real answer. (Plus a little personality.)
🦍 Pro Tip from the Gorillas:
Want more deductions this year?
Pay early. Defer income.
And let Hedgi do the tracking.