Business Expenses Online Information

Here at Business Expenses Online, we are dedicated to bringing you clear and reliable information about business expenses. Two accounting principles determine when to recognize business expenses: the revenue recognition principle and the matching principle.

The revenue recognition principle states that revenue must be recognized (on your books) in the accounting period in which it is earned (even though you may not be paid until later). In other words, if Business A invoices Business B in December, but does not get paid until January, Business A must show the revenue on its books in December.

The matching principle states that "the expenses must follow the revenue". In other words, business expenses incurred in December must be reported in December, even if those business expenses are not paid until January.

Timely Reporting of Business Expenses

These two principles make it imperative that you process both revenue and expenses in a timely fashion. Particularly where expenses are concerned, many businesses are turning to online tools in order to expedite reporting. This is because:

By managing their business expenses online, businesses find it easier to follow the matching principle, and let their expenses closely follow the revenue.

Moreover, managing business expenses online allows employees to be reimbursed promptly for their business expenses.

Finally, managing business expenses online allows companies to more closely monitor and control the reporting of business expenses by employees. Online expense reporting introduces a strong measure of control into what has, hitherto, been a strictly paper-based process.

We hope that this site will provide useful information about reporting business expenses.