Business Expense
/ˈbɪznəs ɪkˈspɛns/
Definitions
- (n.) An outlay of money incurred in the ordinary course of running a business, often deductible from taxable income.
The company recorded office supplies as a business expense to reduce its taxable income.
- (n.) Costs directly related to operation such as rent, salaries, and utilities, recognized in accounting and tax law.
Rent paid for the storefront is considered a business expense for tax reporting.
Forms
- business expense
- business expenses
Related terms
See also
Commentary
Business expense definitions hinge on the legal context—tax law emphasizes deductibility, while accounting focuses on cost recognition; precise documentation supports audit compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.