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  1. To calculate business expenses, you can follow these steps12:
    1. Tally all of the expenses of your business on a regular basis. Daily is not too often if a longer cycle means that some payments will be forgotten.
    2. Record these expenditures in your accounting system (usually a paper ledger or computer software).
    3. Create a new expense entry to cover any additional expenses that are not covered in your monthly recurring expenses.
    4. Calculate net income by subtracting beginning equity from end equity.
    5. Calculate total expenses by subtracting net income from net revenue.
    6. If the result is positive, the revenue is more than expenses, making a profit.
    Learn more:
    Below is a simple way of calculating total expenses from revenue, owner's equity, and income: Net income = End equity - Beginning equity (from the balance sheet) Total Expenses = Net Revenue - Net Income If the result is positive, the revenue is more than expenses, making a profit.
    www.paddle.com/resources/total-expenses

    How to Calculate Business Expenses

    • 1. Tally all of the expenses of your business on a regular basis. Daily is not too often if a longer cycle means that some payments will be forgotten. ...
    smallbusiness.chron.com/calculate-business-expe…
     
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