Expenses
Products and services purchased for in connection with driving the sales of the business. They major ones include payroll, rent, utilities, materials if you are sellng a product, supples and more. The key is the rationalization of expenses and the productivity of dollars spent.
There are several modules that address the effective management of expenses including our human resource module and our financial planning and control module. Where applicable we use our production and control module, maintenance module and retail store management module.
Expense vs. Capitalize
Generally an item purchased that is used in support of sales over an extended period of time is capitalized and amortized based on its useful life over the period benefited. The most common types of capitalized spending are machinery and equipement, some computers and software, buildings owned, major leasehold improvements and vehicles purchased.
You are invited to review the index of articles for more informantion on expense management and profit improvement.
|