Expenses are any purchases or money spent in order to generate revenue. Expenses are also known as “the cost of doing business.”

Although some expenses fall into more than one category, there are four main types of expenses.

Fixed expenses are expenses that are consistent, such as rent or salaries. These costs are usually unaffected by company sales or market trends.

Variable expenses, such as utilities and raw materials, vary with company performance and production.

Accrued expenses are those that have been recorded or reported but have not yet been paid.

Operating expenses, such as rent, utilities, payroll, and utilities, are required for a company to conduct business and generate revenue.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.