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Expenses

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Expenses covers the following:

 Direct costs: Costs incurred in providing goods or services, inclusive of freight — for example, purchase of stock.

 Expenses: Costs associated with running the business — for example, telephone charges.

 Depreciation: The allocation of the value of capital assets to expenses, over the life of the assets — for example, depreciation on cars owned by the business.

 Overheads: Fixed costs associated with running the business — for example, rent.

See the following section for more on how direct costs relating to specific income streams can be reflected in expense accounts within your Chart of Accounts in Xero.

Xero For Dummies

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