Understanding Expenses in Product Sales Business
In this article, we will provide a thorough explanation of what can be considered as an expense in a product sales business and what to keep in mind. We will cover the points that are easy to get caught in the military, and the points that you need to be careful about. Being aware of them firmly will lead to tax savings, and the result will be good. You will be able to increase the amount of money that comes to you, so if you don't want to file a tax return because you haven't earned 200,000 yen in profits yet this year, please read it until the end for future reference.
Table of Contents
1. [Understanding Expenses in Product Sales Business](#understanding-expenses-in-product-sales-business)
2. [The Premise: Expenses in Individual Business](#the-premise-expenses-in-individual-business)
3. [Expenses in Corporate Business](#expenses-in-corporate-business)
4. [Tax Calculation](#tax-calculation)
5. [Main Expenses](#main-expenses)
6. [Expenses That Can Be Deducted](#expenses-that-can-be-deducted)
7. [Investing in Knowledge](#investing-in-knowledge)
8. [Summary](#summary)
9. [FAQs](#faqs)
10. [Resources](#resources)
The Premise: Expenses in Individual Business
First of all, let's talk about the premise. There are many people who have a wrong understanding of expenses, so we would like to explain a little about expenses when running an individual business. In the case of office workers, it's company expenses, such as drinking parties, golf, entertainment expenses, training skills, and so on, but in this case, it feels like they receive money from the company. So, just make sense of it. In other words, since I can use the company's money, it feels like I can do something for free. When I go out to eat with the people at the company, I can go out for drinks for free, so I'm grateful for the money I get to use, but I'm an office worker. Well, the process in this case is like this.
Expenses in Corporate Business
In the case of a corporate business, expenses are the money needed to run the business, so if you record it as an expense, you can receive money from someone. That's not true. If you're an office worker, you receive money from the company, so your money doesn't actually decrease, but in the case of a private business, geisha has to put money out of their own wallet, so they waste money just because it's an expense. I hope you understand that there is no point in doing something like that, but in the end, it's just your own money coming in, so you have to pay from your own wallet.
Tax Calculation
Tax is calculated to determine the amount of tax. What it means is that tax is sales minus miscellaneous expenses. Tax is applied to this amount. For example, if the tax is 10%, sales are 1 million yen and expenses are If it is zero, the tax is 10% of 1 million yen, so it is 100,000. But if sales are 1 million yen and expenses are 100,000 yen, sales - expenses are 900,000 yen, so 900,000 and 20% are added to that, so the tax is 90,000 yen. I feel like if you take 100,000 yen as expenses, you can save the most on taxes, so I hope you understand that you won't get that money if you take it as an expense.
Main Expenses
The main expenses in a product sales business are purchasing table, sales fees, transfer fees, and other fees, packaging materials, shipping costs, and outsourcing costs.
Expenses That Can Be Deducted
Expenses that can be deducted as expenses when selling products are surprisingly often overlooked. First of all, communication costs, utilities, and rent. There are things that affect your private life that can be recorded as expenses. How is this determined? Everyday life is also a private life, right? The amount that can be recorded as an expense is determined by the proportion of that and business expenses. For example, if you're renting a room just for business purposes, it's like a warehouse. If you say that you are using your smartphone for business purposes, you can only account for that portion of the cost.
Investing in Knowledge
To continue to grow at a high level in the classroom, you need to invest in knowledge. I think it's extremely important to do things. Nowadays, there are not only books but also notebooks written by those great Chinese heroes, and a lot of e-books, so please take a look. I think this investment in knowledge is directly related to the later business, so it can be treated as an expense.
Summary
By reporting expenses in a legitimate manner, you can avoid paying unnecessary taxes. If you try to file a tax return just because you don't want to pay the tax, or if you don't file your final tax return because you just don't want to pay it, you will end up having to pay the delinquent tax later. If you pay that late tax, you may end up having to pay more, so be sure to have knowledge about expenses.
FAQs
1. What are the main expenses in a product sales business?
- The main expenses in a product sales business are purchasing table, sales fees, transfer fees, and other fees, packaging materials, shipping costs, and outsourcing costs.
2. Can communication costs, utilities, and rent be recorded as expenses?
- Yes, there are things that affect your private life that can be recorded as expenses. The amount that can be recorded as an expense is determined by the proportion of that and business expenses.
3. Why is investing in knowledge important?
- Investing in knowledge is important because it is directly related to the later business, and it can be treated as an expense.
Resources
- [AI Chatbot](https://www.voc.ai/product/ai-chatbot)
