Example Of Business Expenses Spreadsheet – Businesses have day-to-day business operations and their expenses include purchasing inventory and equipment, travel, company property, insurance and the cost of managing employees. The debts of the company, counted as loans and lines of credit are also considered as the expenses of the company. The IRS allows tax deductions for eligible business expenses.
The costs of buying the company’s assets as well as property and equipment are considered “capital” expenses in business, which improves the ability to provide customer service. Examples of company assets include the rights to buildings, machinery, furniture and franchises. The IRS does not allow deductions for the purchase of company assets, but allows business owners to recover the cost of business assets through depreciation. By depreciating the value of the company’s assets and deducting a portion of the cost each year, business owners can recover costs on time.
The cost of managing employees is a big business expense. Employers must pay salaries to employees, commissions and bonuses. Employers must also maintain workers’ compensation insurance to pay for work-related injuries suffered by employees. Other employee-related expenses include benefit programs, such as health plans, educational assistance, life insurance, and dependent care assistance. Also, employers must pay federal unemployment taxes to fund state unemployment insurance programs.
Companies often maintain various types of insurance policies. Premiums paid are considered business expenses. A company looking for insurance to protect against liability exposure, as well as insurance to pay for damages to the property of the company. Professionals in business often purchase professional liability insurance in the event that their services harm the customer. Commercial auto insurance is another expense with the company having a fleet of vehicles or if a personal vehicle is used for commercial purposes.
Business debts can include loans and lines of credit as well as business credit cards. Interest payments on borrowed money for business purposes are also a business expense. Many companies also establish accounts with merchants and suppliers to obtain the products and inventory required for customer service.
Example Of Business Expenses Spreadsheet