The “Business Expense” Trap That’s Silently Killing Your Profits
When “It’s a business expense” becomes your most expensive habit.
You swipe your business credit card for the latest software upgrade, thinking, It’s fine, it’s tax-deductible.
It feels logical. You’ve been told over and over that business expenses reduce your tax bill, so in a way… they feel like free money.
Except they’re not. You still have to pay for them — with real cash — long after the tax benefit is gone.
Meet Valerie
Valerie ran a well-respected interior design studio she’d built over 12 years. She was smart, creative, and deeply committed to her clients. But she had a blind spot: her spending on software and tools.
Every time a new project management platform promised to “revolutionize” her workflow or an analytics dashboard claimed to “unlock client insights,” she bought it.
Her reasoning? It’s a business expense — and I’ll write it off anyway.
By the time she came to me, Valerie was spending 18% of her annual revenue on tools she barely used. Her QuickBooks made those purchases look legitimate in 2024. But her bank account told a different story: she was still making minimum payments in 2025 on tools she’d abandoned months ago.
The Harsh Reality of “Write-Off” Spending
Yes, the cost of those tools was deductible the year she purchased them. But every monthly payment afterward? Only the interest portion was deductible. The principal came straight from her profits, dollar for dollar.
Valerie was using tomorrow’s profits to pay for yesterday’s business decisions.
The Fix
When we worked together, I showed Valerie exactly how much of her revenue was disappearing into subscriptions and tool payments that no longer served her business.
We ran the numbers, and it hit her: she wasn’t building her business — she was funding the software industry.
In 90 days, we:
Reduced her tool spend from 18% to 5% of revenue
Consolidated her tech stack so every tool was used daily
Freed up thousands in monthly cash flow to invest in client delivery and profit growth
3 Questions Every Business Owner Should Ask Before Buying
1. Can I pay for this in full without touching my emergency fund?
Because debt turns a one-time expense into a long-term profit drain.
2. What percentage of my revenue does this represent?
Because even “small” monthly charges stack up faster than you think.
3. Will this replace something I already have — or just add another layer?
Because too many tools creates confusion, not clarity.
And if it is replacing something, be sure to follow through and cancel the other expense!
I’m Olivia aka Agent O!
I help women business owners who feel overwhelmed, behind on their books, and unsure what to do next.
Not because they’re broken — but because no one ever taught them how to trust their numbers.
Before I became the one fixing finances for other people, I was the one crying over spreadsheets at 3am — afraid of making a mistake, worried I’d lose everything, unsure who I could trust.
That’s why my work isn’t just tactical — it’s emotional. Because money always is.
