Work Smarter – Not Harder

Expense

The most important terms in time management

Back to Home page

What is an Expense?

In the simplest terms, an expense is an outflow of money to another company or individual as payment for services rendered or an item acquired. In other terms, it is anything that leads to the reduced value of the owner. Thus, if something increases a company’s liability, it can be defined as an expense.

Types of Expenses

There are two main types of expenses. It is important that you understand what are fixed expenses and what are variable expenses when using a record expenses app. It will ensure that there is reliability in the results that you get. So:

What are fixed expenses?

Fixed expenses are those which remain constant and are recurrent. It does not matter if your company makes sales or not. For instance, rent which or electricity bills that you have to pay every month.

What are variable expenses?

Variable expenses are these which change directly with a change in sales volume. These costs include hourly wages, the costs of goods sold, and shipping costs.

How to calculate expenses?

Tracking expenses with zistemo

It is quite easy to understand expenses. You simply calculate the amount of money you have spent to get to the final stage of the production process. Without understanding its expenses, a company would soon be declared bankrupt.

At times, the costs associated with an expansion make it an unprofitable move. Thus, understanding costs after each process can help you to improve your business profitability.

Simplify Expense Calculation with zistemo

One of the easiest ways to calculate expenses is to use an automated method, like Zistemo Expense Tracking. It will help you to track all expenses and calculate them automatically. The result is that you can:

E


Related words

Assets

What are assets? Assets are anything available to meet commitments or offset debts and add financial value to a business or service. It may be money in the bank, investments, property or possessions.

A

Commercial Invoice

What is a commercial invoice? If you run a small international business you’ve probably either received or had to issue a commercial invoice. Commercial invoices allow foreign trade and shipment to occur more seamlessly and easily.

C Commercial Invoice e-invoicing

Billing Software

What is billing software? You may be used to creating paper invoices to request payment or paying invoices by cheques in the mail. Online billing software does the receiving and payment work for you.

B Billing software Double Entry Bookkeeping

Invoice

Invoice definition An invoice is an itemized “bill” of sale. It includes two parties: the issuer and the buyer. The issuer of the invoice is the “seller” of products or services.

I

zistemo: the productivity booster for your business

No credit card required. Cancel anytime.