BizEquity Knowledgebase Support Center

Where Do I Enter Regular Expenses?

The nature of our algorithm is such that there are only a few select "specific" expense items which must be entered, namely interest expense, non-cash expenses like depreciation and then any "one-time, non-recurring" expenses as you have pointed out in your message. You would only enter an expense number in this category if there were any "unusual and non-recurring or unrelated expenses", which is only rarely the case. By entering the pretax income figure from your tax return or income statement, you have automatically accounted for ALL of the operating expenses including cost of goods sold (if a retail or mfg. business). The reason for listing the interest and non-cash expenses is that they are a special type of "discretionary" expenditure which are used to help value the company.