Types of expenses you can invoice as a company

At every company, small or "petty cash" expenses tend to be tricky to track and invoice. And despite seeming insignificant, these small amounts can add up quickly, creating a considerable administrative burden for teams, who have to chase down invoices or, in the worst case, lose out on tax deductions, leading to paying thousands of extra pesos in taxes each month.

To clear up doubts about the types of expenses employees can invoice on behalf of the company, we created this article. If you want to know which expenses you can deduct and why it's important to do so, keep reading.

Why is it important to invoice company expenses?

Knowing the types of business expenses that can be invoiced is crucial for several benefits. The most notable ones are:

1. Tax savings

By invoicing your recurring expenses and reporting them to the SAT, many can be deductible, which translates into significant savings. By requesting the corresponding invoices, the company can optimize its accounting and reduce its tax burden.

2. Better financial control

Having an invoice for each expense gives you full control over the company's finances. This makes it easier to analyze recurring expenses and contributes to better decision-making, improving accounting management.

3. Proof of expenses

The electronic invoice is an essential document to validate expenses with the SAT. That's why it's essential to request invoices as soon as possible to avoid problems with tax returns and ensure the correct management of income and expenses.

What types of expenses can you invoice as a company?

The types of expenses that can be invoiced vary depending on each company's policies and operations. However, there are categories that apply by law to all organizations:

1. Travel expenses

These include the costs the company covers when an employee carries out work activities away from headquarters, more than 50 km away. These include plane tickets, lodging, car rentals, and meals during the trip. It's key that these expenses be reasonable and necessary for the business, following the company's internal policies.

2. Office supplies

This category groups expenses related to the supplies needed for daily work: paper, printer ink, furniture, pens, and more. These are essential for the company's operation and can vary by industry.

3. Telecommunications

This category includes phone bills, internet services, email, and video conferencing, among others. The need for these services can vary depending on the type of business. For example, a digital marketing agency will need high-speed internet, while a construction company will prioritize mobile phone services to coordinate its team in the field.

4. Professional services

This type of expense includes hiring specialized services such as graphic design, digital advertising, and consulting, as well as spending on training, courses, and conferences that benefit both employees and the company.

5. Fixed assets

Fixed assets include purchases of office equipment, computers, vehicles, and any acquisition that supports the company's operations. Invoicing these assets is essential for keeping accurate accounting records.

6. Representation expenses

Although often confused with travel expenses, representation expenses refer to activities carried out with clients without leaving the city. For example, business dinners, corporate events, or seminars. The difference is that these expenses don't involve trips of more than 50 km.

7. Fuel

Companies that manage vehicle fleets or provide mobility for their employees can invoice fuel expenses. This is another common category at many companies and is deductible as long as it's invoiced correctly.

Start invoicing all your expenses with Zumma!

If you want to optimize how your company manages its expenses, doing it in an automated way is the best option. Zumma lets you manage all of your company's purchases, making it easier to control, deduct, and document expenses through an intuitive web platform.

With Zumma, employees only need to send their expense ticket via WhatsApp and they'll receive the invoice within minutes, both by email and WhatsApp. Meanwhile, the finance team can keep full control over company expenses from a centralized dashboard.

Simplify your processes and start saving with Zumma.

Contact us to learn more!