With business bookkeeping and basic tax tips for new and old entrepenuers

Tuesday, May 12, 2009

What are the Expense Categories to Use?

As far as categorizing expenses, since most bookkeeping, especially for small businesses is to be able to prepare your tax returns at the end of the year, I recommend using the categories as they are set up on a tax return. For a business schedule C, that would be as follows; advertising, commissions & fees, insurance, interest, professional fees, office expense, rent, repairs & maintenance, supplies, meals & entertainment, utilities and wages paid. I will give come some further clarification as to what falls in some of these categories