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{{Short description|Item requiring cash outflow}}
{{redirect|Expenses|the Better Call Saul episode|Expenses (Better Call Saul)}}
An '''expense''' is an item requiring an outflow of [[money]], or any form of [[Wealth|fortune]] in general, to another person or group as payment for an item, service, or other category of [[cost]]s. For a [[leasehold estate|tenant]], [[renting|rent]] is an expense. For students or parents,
In [[accounting]], ''expense'' is any specific outflow of cash or other valuable assets from a person or company to another person or company. This outflow is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an expense is an event in which a
Expense is a term also used in [[sociology]], in which a particular fortune or price is sacrificed voluntarily or involuntarily by something or someone to something or somebody else, often in the context that the latter is taking advantage of the former.
==Bookkeeping for expenses==
In
==Cash flow==
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Defining an expense as capital or income using the most common interpretation depends upon its term.
When an expense is seen as a purchase, it alleviates this distinction. Soon after the purchase (that which was expenses holds no value), it is usually identified as an expense. It will be viewed as capital with life that should be [[Amortization (business)|amortized]]/[[depreciation|depreciated]] and retained on the
==Deduction of business expenses under the United States tax code==
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Section 212 of the Internal Revenue Code is the deduction provision for investment expenses.<ref>{{USC|26|212}}</ref> In addition to being an expense and satisfying elements 1-4 above, expenses are deductible as an investment activity under Section 212 of the Internal Revenue Code if they are (1) for the production or collection of income, (2) for the management, conservation, or maintenance of property held for the production of income, or (3) in connection with the determination, collection, or refund of any tax.
In investing, one
==Expense report==
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Many businesses benefit from automated expense reports systems for [[expense management]]. Depending on the system chosen, these software solutions can reduce time costs, errors, and fraud.
==Expense management==
Expense management is a crucial aspect of both personal and corporate financial well-being. It involves effectively tracking, controlling, and optimizing expenses to ensure financial stability and growth. Whether for individuals or organizations, understanding and managing expenses is essential for various reasons.
On a personal level, expense management enables individuals to maintain a healthy financial life. By tracking and categorizing expenses, individuals gain a clear understanding of where their money is going. This awareness allows for better budgeting, saving, and investing decisions. It empowers individuals to make informed choices about their spending habits, prioritize financial goals, and avoid unnecessary debt. There are outstanding mobile applications that makes personal expense management handy, notably SMoney that are available in both [https://apps.apple.com/us/app/smoney-expense-tracker/id1525674363 iOS] and [https://play.google.com/store/apps/details?id=com.money.smoney%20android&hl=en%20US Android] Versions.
For businesses, effective expense management is vital for maintaining financial health and achieving long-term success. By closely monitoring and controlling expenses, businesses can optimize their operational costs and improve profitability. Expense management helps identify areas of overspending, inefficiencies, or potential cost savings. It allows for strategic decision-making, such as resource allocation, investment planning, and pricing strategies. Moreover, proper expense management ensures compliance with financial regulations and enhances transparency in financial reporting. Whilst there are a plethora of corporate finance and expense management apps, it is notable that [https://www.odoo.com Odoo] and [https://www.expense.com.hk/ Expense.com.hk] are free and simple to use. Other platforms, including [https://www.workstem.com Workstem] and [https://www.info-tech.com.hk/ InfoTech] requires an upfront payment plus relatively complex setup procedures.
In both personal and corporate contexts, expense management contributes to financial stability and resilience. It helps individuals and businesses weather unexpected expenses, emergencies, or economic downturns. By establishing sound financial habits and practices, individuals can build a strong foundation for their future. Similarly, organizations with effective expense management have better cash flow management, which enhances their ability to invest, expand, and adapt to changing market conditions.
==See also==
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