what % of your revenue is business expenses?

EvilPenguin

EvilPenguin

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May 4, 2012
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my accountant said that it was weird that ~50% of my total revenue was expenses. I'm scared this will trigger an audit.

what do you guys think? is this normal in the IM field? what % of your total revenue is expenses? (e.g. your VAs, contractors, tools, advertising, restaurants, flights, etc..)
 


Your question doesn't make any sense.

Do you mean you aren't spending anything on materials, and that's wierd? You're a fucking internet based business. You're not gonna buy bricks.
 
You have some vocabulary words to learn but I think I understand the question anyways and my question is: if you can't weather an audit why are you trying to expense all that shit?
 
EvilPenguin said:
my accountant said that it was weird that ~50% of my total revenue was expenses. I'm scared this will trigger an audit.

what do you guys think? is this normal in the IM field? what % of your total revenue is expenses? (e.g. your VAs, contractors, tools, advertising, restaurants, flights, etc..)
Click to expand...

I have a length of string that is 3 inches long. Is it bad that my string is 3 inches long? Should it be 5 inches? Or 1 inch?
 
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Come on penguin...how do you expect anyone to give a reasonable answer to that without knowing more details? If you are churn and burn, I would say yeah - that's wierd. If you're building long term assets with delayed return, probably not far off. If you're doing ppc...yeah...you get that point. Give us some more info. I didn't even do taxes this year yet, but I'm estimating about 30-40% of my revenue is going to be expensed.
 
This thread is now about elephants:

tumblr_mi734hEWSt1s5l2s9o1_1280.jpg
 
This is a good question... for your accountant.

FYI we don't know what that shiny bump on your penis means either... cancer? gangrene? masturbation injury?
 
its different for everyone. if someone does a single breakeven PPC campaign, variable expenses alone on that campaign are 100%. margin totally depends on your level of revenue relative to fixed costs, what strategies you're employing (some are higher variable margin, some lower), your degree of success on those strategies, and how much bullshit overhead you're adding in.
 
drave said:
its different for everyone. if someone does a single breakeven PPC campaign, variable expenses alone on that campaign are 100%. margin totally depends on your level of revenue relative to fixed costs, what strategies you're employing (some are higher variable margin, some lower), your degree of success on those strategies, and how much bullshit overhead you're adding in.
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yeah, I guess my mistake was assuming everyone was doing the same thing. I can see how those buying traffic via ppc, media buying and stuff would have much larger expenses.
 
If you're telling the truth about your expenses, and you have an accountant handing things, who cares about an audit? Call up the irs and be like "Come at me, bro"
 
You account sucks if your only writing off 50% needs to be over 100% for the first few years. New business are not expected to make money. Then a few years later when your banking it and need to get you taxable income down use the losses from the first few years!
 
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