Indirect Expenses

The Indirect Expense Summary report provides a consolidated view of a company's indirect expenses, which are costs associated with the business use of personal property. These expenses are not typically tracked directly within the accounting software but are essential for accurate financial reporting and tax purposes.

The report summarizes expenses related to:

• Home Office: Includes a portion of rent/mortgage, homeowners insurance, utilities, maintenance, and housekeeping allocated for business use.
• Personal Vehicle: Includes expenses related to fuel, repairs & maintenance, tolls, and parking allocated for business use.
• Other Personal Property: May include expenses related to cell phone, internet, and other personal property used for business purposes.

By analyzing the Indirect Expense Summary report, businesses can ensure they are accurately capturing and deducting these expenses, maximizing tax benefits and maintaining compliance with IRS regulations.