An important element of running a business is keeping tabs on your business finances, including expenses specifically related to your business. Proper accounting not only helps you improve cash flow, the oxygen your business needs to survive, but your company can qualify for valuable tax deductions that reduce your adjusted gross income. Here’s what you need to know about business expenses and how to track them.
What are business expenses?
Business expenses are those expenditures that relate directly to starting and maintaining your business. They include expenses like inventory purchases, for example. Wages and salaries are also considered a business expense. Each of these expenses falls into one of two categories.