Company expenses are costs incurred by businesses to keep operations running smoothly. These can include everything from office supplies and employee salaries to utilities and transportation expenses. For tax purposes, certain expenditures may be designated as ‘tax deductible’, meaning they can be used to offset the company’s taxable income. This can help to reduce the overall amount of taxes a business owes in any given year. To be eligible for this deduction, the expense must be related to the activities of the business, necessary for doing business, and reasonable in amount.