{"id":271528,"date":"2023-12-07T12:30:20","date_gmt":"2023-12-07T00:30:20","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?page_id=271528"},"modified":"2025-01-29T12:25:41","modified_gmt":"2025-01-29T00:25:41","slug":"expense","status":"publish","type":"glo","link":"https:\/\/www.reckon.com\/nz\/glossary\/expense\/","title":{"rendered":"What is an expense?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”off|desktop” _builder_version=”4.27.2″ custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” custom_padding_phone=”0px||||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f4f4f4″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Definition description ” _builder_version=”4.27.4″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

\u2018Expense\u2019 is one of the most fundamental terms in finance, business, and accounting. While it may seem straightforward, there are several intricacies around the term, and if you\u2019re going into business<\/a>\u2014or undertaking bookkeeping or accounting\u2014your knowledge of what an expense is, and how it works needs to be sound.<\/p>\n

Expense (meaning)<\/h2>\n

An expense is a cost incurred or payment made for goods, services, or resources to support a business. Expenses are typically associated with revenue generation or day-to-day operations.<\/p>\n

Expenses are subtracted from revenue to calculate profit<\/a>.<\/p>\n

There are many types of expenses in the business world. Let\u2019s unpack the most important.<\/p>\n

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1. Business expense<\/h2>\n

A business expense refers to the costs incurred by a business in the process of generating income. A business expense must be kept separate from your own expenses.<\/p>\n

Businesses need to keep accurate records of their business expenses for tax purposes and sound financial management. Software to help you manage your business expenses<\/a> can assist you here.<\/p>\n

Common business expenses include:<\/p>\n