From the course: Revenue, Staffing, and Expense Models Explained
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Expense model explained
From the course: Revenue, Staffing, and Expense Models Explained
Expense model explained
- Next up is our expense worksheet. And our expense worksheet is just going to capture all the expenses outside of our staffing expenses which we've already calculated. Now, we want to use the same calculations that we used just a moment ago in our staffing plan as well. They all qualify exactly the same. We've got to make sure we classify expenses properly. It's very important that you do this because this is how we get accurate financial statements. If we don't classify properly, our margin calculations will be off. You'll not represent yourself from the best way and I guarantee you, investors will catch it and they will question you on it if you don't actually get this right. Now, also for tax purposes, this also can be helpful as well. We want to make sure that we have things in the right categories for that as well. Now remember, there could be overlap between classifications that you can actually split expenses…
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