Let’s Talk Bookkeeping – Expenses Part 4a

While we’re talking about expenses, let’s add something else you might not think about. This does round back to other blogs I’ve posted.

You must separate what is an expense from what is an investment at least in your mind. An expense is a cost for your immediate business, usually for maintaining the business. An investment is a cost you pay out now that you hope will return a greater reward in the future.

An investment might include purchasing more equipment or taking a class. While these are technically classified as expenses or fixed assets that will have depreciation expenses for bookkeeping purposes, you need to keep in mind that if you expect to receive a long-term payoff it’s an investment. An investment may also be as simple as putting your time and energy into your passion. Invest in skills you will always have. No one can take away skills you learn. Weigh the costs of an investment against the future potential and you might see your expenses diminishing for a greater reward.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: