In short, a business expense is a cost that you incur in order to generate revenue. The business expenses can be claimed for income tax purposes, allowing you to reduce tax payable.
Business expenses have to be supported up with supporting documents, such as a sales invoice, a receipt, etc. Supporting documents should include the vendor’s name and the date, total amount, and business number in case if there are taxes collected. Furthermore, the processed bank cheques can support amount paid for business expenses.
10 common business expenses are:
- Accounting fees
- Advertising expenses
- Business fees, licences, and dues
- Insurance expenses
- Interest and bank charges
- Maintenance and repairs
- Meals and entertainment
- Motor vehicle expenses
- Fuel and oil
- Automobile maintenance and repairs
- Licence and registration fees
- Capital cost allowance
- Interest paid on car’s loan
- Leasing costs
- Office expenses
- Salaries expenses
While it may seem straight forward what the business expenses are, feel free to contact me for quick consultation.