Understanding Business Expenses

Business expenses are costs paid to operate the business. If expenses are not recorded properly, profit figures become unreliable.

Common expenses

Expenses may include rent, wages, transport, stock, electricity, airtime, packaging, supplier bills and repairs.

Small costs matter

Small daily expenses can become large monthly costs if ignored.

Separate personal spending

Personal spending should not be mixed with business expenses. This makes profit harder to understand.

Review expenses regularly

Weekly and monthly reviews help identify costs that are reducing profit.

Clear expense records help business owners make better decisions.