Expense
In accounting, an expense refers to any cost that contributes to a company’s overall cost of doing business. That is, any costs incurred as a result of a company’s attempted or successful revenue production. Expenses may include cash, cash equivalents, and depreciation.
Some common examples of expenses include:
• Employee wages
• Rent or property lease
• Utility bills
• Advertising
• Cost of goods sold
Every company faces unavoidable expenses, meaning costs that are necessary to maintain normal business operation. Investing in good expense management software makes it easier for businesses to track and process employee expenses properly. A more general expense definition is any cost an individual or organization incurs within a specified period.
