• Cost on employee: The cost is associated to hire the permanent & temporary labors, staffs & contractors. It also includes the contribution of management to the retirement benefit fund like pension fund or gratuity fund. Besides this the incentive & bonus are also treated as cost on employee.

• Cost for the use of premises: The business house has to pay rent on monthly, quarterly, yearly basis or lease amount for the premises wherefrom it operates the business. Even if the company is the sole proprietor of the premises there should have a depreciation cost of the premises. This cost may be treated as the cost for the use of premises.

• Traveling expenses: The cost incurred for the traveling by staffs to the causes of the company.

• Telephone expenses: It is the expenses for telephone bills linked to business.

• Inventory: The cost of the items needed to provide services to the customer.

• Advertisement: It is most essential part to promote the business. The expenses incurred to make relationship with the clients & advertising in different medium to reach the targeted customers fall in this category.

• Professional Services: This cost includes the service charge of lawyers, external auditors & accountants for the service provided by them.

• Sundry expenses: The expenses which do not fall in the general category is defined as sundry expenses.

Above mentioned categorization list is not all inclusive. The business expenses are very important part to the business accounting. A higher amount of Tax relief may be obtained by close monitoring & making right categorization of business expenses. To get information please contact the website.

A good example for the misuse of business expenses is the recent UK political Scandal. This scandal diminished the peoples trust in the existing political system and gave rise to the term, “Rotten Parliament” events like these make you wonder about the current state of politics. If politicians can’t set an example, I don’t think that the common people who own small businesses are going to be all that different. People who lease cars don’t think that it will be worth the cost but obtaining finance for a car shows to be a greater expense as compared to leasing a car.

Most business people who disguise personal expenses as business expenses are likely to get caught at some point of time although it might seem like fun and games at first there is always a catch which might be seen and caught by a suspecting IRS official. If business and personal expenses some how get mixed up the right thing to do is calculate the percentage spent on personal gain and the amount that was legitimately spent for the business, the amount that was legitimately spent on the business can be rightfully claimed by the employee.

If you are on the look out to cut your costs and increase profit, hire a good analyst who can show you where you can increase your productivity in business to maximize your profit.

“He has co-operated fully with the investigation which relates to five meal expense claims which have a total value of £227.00. In the context of other, and far more significant, investigations it is a matter of regret that political expediency appears to be present.” Given that proceedings have been brought it is inappropriate to comment further at this time.” Mr Johnson has lost several high profile figures from his team after a string of controversies. First transport minister Tim Parker left after discovering he would not be made chairman of Transport for London. He was preceded by Ray Lewis, another deputy mayor, following allegations about his past and James McGrath, senior political strategist, for comments about immigrants of Caribbean origin Paralegal Busted for Claiming $430,000 in Fake Travel Expenses As a blogger, it’s not my mission to rat out every paralegal who makes a mistake, but this story from the San Antonio Express News is notable for the sheer audacity of the alleged misdeeds.

In this case, the since fired paralegal copped to submitting more than $430,000.00 in fake travel claims. Leo G. Alvarado, an ex-lawyer who worked as a paralegal for Texas RioGrande Legal Aid for approximately 14 years, “pleaded guilty to four felony counts of mail fraud for submitting false claims for mileage and per-diem reimbursement.” He claimed he had visited several of the organization’s clients to help them fill out their Veterans Affairs Department claims. In reality, the people he claimed to have visited were dead, did not exist or were not even clients of the TRLA, previously known as the Texas Rural Legal Aid.

It provides legal services to the poor. It’s not unheard of for employees to pad travel reimbursement requests or misplace a few meal receipts, but almost half a million dollars in fraudulent mileage and per-diem claims is like winning the travel expense lottery. Why didn’t this kind of money raise any red flags in TRLA’s bookkeeping department a long time ago? How much does it cost to visit the poor – in the same state? Our eagle-eyed office manager and bookkeeper notices if we accidentally write 43 cents instead of 34 cents on a mileage reimbursement form.