Expenses are a fantastically complicated area of accountancy, this guide is here to simplify them for you.
When you are running a business, expenses are an integral part of your cash flow, and this guide will offer you some advice on an incredibly complex subject.
Companies pay tax only on their profits, so if you can offset costs against profits you'll pay less tax. In order to be tax deductible, business expenses relating to the whole cost of running the business must be considered by the IRS as both 'ordinary and necessary'. If your expenses fit these criteria, you can offset them against the amount of tax you pay on the company's overall profits.
This guide is intended to steer you through the maze of what the IRS will and won't accept, how much you can claim, and how to do so. You'll also find out how to separate Business Expenses from Capital and Personal Expenses, and when you may be allowed to claim them as a deductible.