Even on Christmas—Don’t Let Holiday Spending Wreck Your QuickBooks Categories 🎄
No, “Gifts for Clients” doesn’t go under “Office Supplies” (nice try though).
It’s Christmas Day—and while we don’t expect you to be working on your books (seriously, close the laptop and enjoy your eggnog 🥂), here’s a quick and festive reminder for when you do sit down to categorize those holiday expenses in QuickBooks Online.
At DBR Bookkeeping, we help service-based business owners—coaches, consultants, creatives, and contractors—stay on top of their books all year long, including the holiday season when spending gets… let’s say, “creative.”
If you’ve been Googling “How to categorize holiday expenses in QuickBooks” or “Can I deduct client gifts?”—you’re not alone. Let’s clear it up so you don’t end the year with messy books or missed deductions.
Holiday Expense Categories: Naughty or Nice?
🎁 Client Gifts
Right category: Advertising & Promotion (or create a custom “Client Gifts” sub-account under marketing).
💡 IRS Reminder: Gifts are deductible up to $25 per recipient per year. Yes, even if it was a really nice wine basket.
🍪 Holiday Party for Employees
Right category: Meals & Entertainment – 100% Deductible (Employee Events)
💡 Internal parties for staff are fully deductible. Just keep those receipts—and photos of the ugly sweater contest for evidence.
💼 Team Holiday Bonuses
Right category: Wages or Payroll Expenses
💡 Bonuses are taxable income for employees. Don’t sneak them into “Miscellaneous” to keep things off the books. Santa—and the IRS—are watching.
🌟 Charitable Donations
Right category: Charitable Contributions
💡 Not always deductible for businesses unless you’re a C-corp. Check with your tax pro before logging that donation as a business write-off.
Common Mistake to Avoid After the Holidays
❌ Categorizing a Target run as "Office Supplies" when half the cart was wrapping paper and candy canes
✅ Fix: Split the transaction! Business-related expenses go under the right category; personal stuff gets logged as "Owner’s Draw" or just left out entirely.
Want Help Cleaning Up Your Holiday Spending in QBO?
📘 Download the FREE Guide: 5 Simple Steps to Clean Your QuickBooks Online Fast
🎄 Join the DBR Bookkeeping Online Community — led by QuickBooks ProAdvisor Dr. Bryan Raya. Try it FREE for 7 days and get live support to clean up your year-end categories and start 2026 off right.
🎅 Enjoy your holiday. When you're ready to get back to business, we’re here to help you categorize like a pro.
Let’s start Doing Business Right—even after Christmas.
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