Startup Expenses are any expenses made before a business starts, includes costs like Professional fees, Insurance, Premises costs, Staffing and employment, Equipment and supplies, Stock, Sales and marketing, and Finance, etc. These costs are later on depreciated over the years so the expenses are balanced out.
Startup Expense Report is a detailed analysis of the reason for expenses paid and how much is depreciated over the years. The analysis of these expenses is helpful in planning future expenses. It is a private document of the business which is not published for the general public, however, it is made available to the shareholding members, if any. Although it is often demanded by the tax officials for income tax returns verification.
Startup Expense Report doesn’t have a specific requirement or contents list. Although it usually includes the details of the following expenses,