Glossary › Expense
Expense
Money a business spends to operate — rent, software, wages, supplies. Deductible expenses reduce taxable profit.
An expense is any cost incurred in running the business: rent, subscriptions, contractor fees, materials, travel, insurance. Expenses reduce profit, and legitimate business expenses generally reduce taxable income too.
Categorising expenses consistently (and attaching receipts) makes tax time faster and gives you an accurate picture of where money actually goes.
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