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What types of expenses are invoiced?

It is important to understand what types of expenses a company will typically receive an invoice for. When a company is buying goods or services, it is standard for the vendor/supplier to send an invoice to the company that is buying the goods or services.

The most common types of expenses that have an associated invoice include purchases of materials, utilities, consulting services, travel expenses, telephone expenses, and IT service providers.

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  • Am I eligible for a tax refund even with no taxable income?

    Yes, potentially. Even if the taxpayer does not have any taxable income, the taxpayer may still qualify for certain refundable tax credits. It is important to understand that refundable tax credits aren’t limited by the taxpayers taxable income. As you can see in the example below, since the taxpayer had taxable income of $0, he/she would only be eligible for refundable tax credits. Nonrefundable tax credits can only be applied to reduce a taxpayers tax liability to zero. Nonrefundable tax credits cannot result in a tax refund. So if the taxpayer has $0 of taxable income, he/she would not qualify for nonrefundable tax credits. The visual below lists out common refundable tax credits that a taxpayer with no income might be eligible for. This would include the W-2 withholding credit, child tax credit, earned income credit, excess social security paid credit, and the american opportunity credit (this is not a full list of refundable credits.

  • What is an invoice?

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  • How to read early pay discount terms on an invoice?

    If a company offers any early pay discount on your invoice, you better know how to interpret it! In the visual below, you can see how to break down terms that would be “5/10, net 30”. Basically, you would receive a 5% discount on your invoice if you pay the invoice 10 days from the invoice date. If you wait more than 10 days, then you might as well wait until 30 days, as you would no longer be able to receive the discount!