Definition
Expenses are the costs incurred by a business in the process of generating revenue. They are categorized into operating and non-operating expenses, and they reduce the company's profit.
Related Services
Accounting, financial reporting, and tax planning services help businesses categorize and manage expenses for effective cost control and profitability.
Problem and Application
Tracking and categorizing expenses accurately is essential for financial reporting, but improper classification can distort profit margins and affect tax liabilities.
Conclusion
Effective expense management is crucial for maintaining profitability, ensuring financial health, and optimizing tax benefits.
