Expenses


Ron explains in 60-seconds with no BS

So what are revenue, really?

Expenses are everything your business pays to keep the lights on, both literally and metaphorically. That includes rent, payroll, insurance, supplies, software subscriptions, advertising, and even that weird little monthly charge no one remembers signing up for.

Expenses aren’t bad - they’re necessary. But too many businesses treat them like an afterthought, and that’s how profit disappears.

Every business has to spend money to make money, but smart businesses track it, budget for it, and cut what isn’t helping.

If revenue is the money coming in, expenses are what’s flowing back out. And when you subtract one from the other, you get the number everyone actually cares about: profit.

Every time a business forgets to cancel a subscription, an expense gets its wings


How people actually use it in a sentence...

“Maya said her business wasn’t profitable yet… But once she looked at her expenses, she realized it was mostly just her buying things with a logo on them.”


Did you know...

The IRS recognizes over 20 categories of deductible expenses including meals, mileage, and even part of your home if you work from it.


Want the textbook definition? Check out Expenses on Investopedia.com