- Expenses are the costs of operations that a company incurs to generate income.
- Businesses may write off tax-free expenses on their income tax returns, provided they comply with IRS guidelines.
- Accountants record expenses using one of two accounting methods: cash basis or accrual basis.
- In accounting, there are two main categories of business expenses: operating expenses and non-operating expenses.
- The IRS treats capital spending differently than most other business expenses.