An expense is the cost of operations that a company incurs to generate revenue. As the popular saying goes, “it costs money to make money.”
Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation. Businesses are allowed to write off tax-deductible expenses on their income tax returns to lower their taxable income
and thus their tax liability. However, the Internal Revenue Service (IRS) has strict rules on which expenses business are allowed to claim as a deduction
Understanding Expenses
One of the main goals of company management teams is to maximize profits. This is achieved by boosting revenues while keeping expenses in check. Slashing costs can help companies to make even more money from sales.
Two Types of Business Expenses
There are two main categories of business expenses in accounting:
- Operating expenses: Expenses related to the company’s main activities, such as the cost of goods sold, administrative fees, and rent.
- Non-operating expenses: Expenses not directly related to the business' core operations. Common examples include interest charges and other costs associated with borrowing money.
Save time on
expense reports
Everything in one place.
Managing your employees' daily expenses has never been easier. Whether it's travel expenses, office supplies, or any other employee expenditure, access all receipts and expense submissions from your Expenses
dashboard and create, validate, or refuse them in just a click. No need to download a specialized software to maintain expense records - everything can be done directly through the app!
Stop losing receipts
Upload all receipts directly into the expense record.
Employees can easily attach copies of their receipts directly to an expense record to avoid losing them. Add attachments on the go with any mobile device by taking a picture of the receipt and sending to a designated email
address. Save time and increase efficiency by keeping a clean and complete record of all expenses.
Manage expenses per team
Have a clear overview of a team’s expenditures.
As a manager, easily follow expense records across the entire team to keep an eye on costs and ensure they keep on target and within budget.