Business Expenses

Business expenses are costs incurred in the ordinary course of business. They can apply to small entities or large corporations. Business expenses are part of the income statement. On the income statement, business expenses are subtracted from revenue to arrive at a company’s taxable net income. Business expenses may also be referred to as deductions. In general, companies have some limitations and special considerations for business expense deductions. They are generally divided into capital expenditures and operational expenditures.