What are revenue expenses?

Expenditure expenditure is expenses for everyday business costs. When companies spend income spending, costs provide immediate benefits than long -term. This is contrary to capital expenditures, which are long -term investments aimed at helping the company grow and prosper.

Sometimes it is said that businesses have to spend money to make money. Businesses use their income both to accumulate capital that can be used in the long term and to cover immediate expenditure. Revenue expenses include things such as maintenance, wages and salaries and public services costs. Revenue expenses consist of expenditures that must be immediately covered in order to keep the company in operation and which provide immediate benefits.Vely. Routine -high income expenditure can make it more difficult for the company to build capital, which means that it cannot carry out long -term investments and may not be prepared in the event of a crisis situation. For exampleAnd it performs maintenance, it may be trouble if the freezer system drops and needs to be replaced.

occasionally calculated capital expenditure can reduce revenue expenses. In order to re -borrow an example of a restaurant, the owners can sit down and realize that the purchase of a building in which it will operate would be cheaper than renewal. Therefore, they could decide to spend capital for this purchase in order to reduce operating costs and determine the long -term presence. The new building will also be the investment itself; The restaurant now acts can sell or rent if it needs it.

Some income expenses may be restable to tax purposes. It is acknowledged that part of the business income used for immediate expenses should not be taxed and business can require expenditures such as deductions. For example, the company is not obliged to pay taxes on the money it uses to pay tax taxes. Rules for restThese are very complex and for a large enterprise may need to be consulted with the account to obtain accurate information and advice to give taxes properly.