Expensing

Expensing refers to the practice of recognizing an expenditure as an expense on a company’s financial statements, affecting the accounting period in which it occurs. This is typically done in accordance with accounting principles, such as the matching principle, which states that expenses should be recorded in the period they help generate revenue. Proper expensing enables a company to accurately assess its profitability and manage its financial resources effectively.

Expensing meaning with examples

In the financial department, we focused on expensing all operational costs before the end of the fiscal year, to ensure that our budget was aligned with our revenue projections. This strategy of expensing not only complied with our internal policies but also improved our overall financial transparency for stakeholders, allowing them to better gauge our financial health moving forward.
During the quarterly review, it was noted that the team had been diligent in expensing travel costs quickly, ensuring that no receipts were lost and all expenditures were accounted for. This attention to detail in expensing contributed to accurate report generation and enhanced trust from upper management, demonstrating our commitment to financial accountability and rigorous compliance with budgetary constraints.
The startup implemented a new software system aimed at simplifying the expensing process for employees. They could now submit their expenses online, making it easier for the finance team to track and approve claims promptly. By streamlining expensing through technology, the company hoped to foster a culture of fiscal responsibility alongside enhancing employee satisfaction and encouraging timely reporting.
In an effort to cut costs, the management recommended reviewing all expensing policies to identify areas where expenses could be minimized. This involved analyzing recurring expenditures and determining if they were essential for the business's growth. By refining our approach to expensing, we aimed to increase overall profitability while maintaining necessary operational capabilities.

Expensing Synonyms

accounting billing charge clearance cost deduction disbursement expend expenditure expenditures financial reporting general expense outflow outgo outlay payment reimbursement remittance spending subsidiary expense

Expensing Antonyms

acquisition advantage asset benefit collection credit earnings gain income increase inflow investment return profit receiving revenue saving surplus wealth windfall yield