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Business
expenses. Money expended or cost incurred in a firm’s efforts to generate
revenue, representing cost of doing business. Expenses may be in the form of
actual cash payments(such as wages and salaries), a computed "expired"
portion(depreciation)of an asset, or an amount taken out of the firm’s
earnings(such as bad debts). Expenses are summarized and charged in the firm’s
income statement as deductions from the income before assessing income tax.
Whereas all expenses are costs, not all costs(such as those incurred in
acquisition of income generating assets)are expenses.
List of
Typical Business Expenses
Following is a list of typical
business expense categories. Which ones will be applicable to your
business
Advertising expenses
Bank service
charges and fees
Business start-up costs
Business taxes, fees, licenses, dues, memberships, and
subscriptionsA. Merging two industries may help a company perform better on expense management.
B. Business payment periods of 2 months is rarely acceptable.
C. In order to motivate your workers, you need to group your profit and loss statement into easily understandable categories.
D. For a company, one employee’s leaving can cause serious effect on others.
