What expenses can a security services company deduct?
Security companies carry expenses that most small businesses don’t, and many of those costs are fully deductible. The challenge is that owners often miss deductions that are specific to the industry because they don’t show up on generic lists of business write-offs.
Uniforms and branded apparel are deductible, including patches, badges, name plates, and any alterations. If you provide uniforms to employees, the full cost is a business expense. Cleaning and maintenance of those uniforms counts too. Body armor and protective gear fall into the same category.
Firearms, holsters, ammunition, duty belts, flashlights, handcuffs, batons, pepper spray, and tasers are all deductible equipment expenses. For armed security companies, these costs add up fast. If firearms are used exclusively for business, the full purchase price is deductible. Ongoing maintenance, cleaning supplies, and storage costs qualify as well.
Licensing and training are significant line items in this industry. State guard agency licenses, individual guard cards, firearms permits, CPR and first aid certifications, de-escalation training, and continuing education are all deductible. If you pay for employee training or reimburse employees for licensing fees, those are business expenses too.
Vehicle expenses hit hard for patrol companies. You can deduct actual expenses like fuel, maintenance, insurance, and depreciation on patrol vehicles. Vehicle wraps and light bar installations count. If guards use personal vehicles, you can reimburse mileage at the IRS standard rate and deduct that reimbursement.
Insurance premiums deserve special attention because they tend to be one of the largest expenses a security company carries. General liability, professional liability, workers comp, and commercial auto insurance are all deductible. Armed security companies pay significantly higher premiums, which makes tracking and deducting every dollar even more important.
Background checks and drug screenings for new hires are deductible. So are the costs of posting job listings. Given the turnover rates in the security industry, these recruiting costs can be substantial over the course of a year.
Guard management and scheduling software, two-way radios, GPS tracking systems, surveillance equipment, and mobile reporting apps are all deductible. Communication equipment in particular is easy to overlook because it often gets purchased piecemeal throughout the year.
Other commonly missed deductions include bonding costs, alarm monitoring fees if you provide that service, office and dispatch space, and professional memberships like ASIS International. If you bid on contracts, the costs of preparing proposals and any required bid bonds are deductible.
The key is capturing all of these expenses consistently throughout the year rather than scrambling at tax time. Facility service companies like security firms benefit from having a chart of accounts built around their actual cost structure so nothing slips through the cracks. Working with Dodge County bookkeepers who understand your industry means your books reflect the true cost of operations and you’re not leaving deductions on the table.
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