Expensing Meaning: Definition, Examples, and Translations
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expensing
[ɪkˈspɛnsɪŋ ]
Definition
business finances
Expensing refers to the process of recording expenses in the financial accounts of a business. It allows companies to track their expenditures for budgeting and taxation purposes. Proper expensing ensures that businesses have a clear understanding of their financial obligations and profitability.
Synonyms
Examples of usage
- The finance team is responsible for expensing all operational costs.
- Proper expensing can help in tax deductions.
- We might need to review our expensing policies next quarter.
Translations
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Origin of 'expensing'
The term 'expensing' originates from the word 'expense', which can be traced back to the Latin term 'expensum', meaning 'to weigh out, pay out'. The evolution of the term in the financial context began in the early 20th century as businesses sought more efficient ways to account for their costs. 'Expensing' as a process became more formalized with the advent of corporate accounting practices. Businesses began to recognize the necessity of tracking all expenses to develop budgets, report to stakeholders, and prepare for tax obligations. This is crucial for financial health and strategic planning, leading to the widespread use of the term in modern financial discussions.