Business expenses stem from the costs a company incurs during its regular operations. These outlays could be one-time charges or ongoing payments, both of which contribute to the company's net revenue and overall accounting practices. With the continuous growth of a business comes an increase in the amount and magnitude of these expenses, making it crucial to clearly distinguish between recurring and nonrecurring costs when evaluating financial statements. This article aims to unpack what recurring and nonrecurring expenses are, how to differentiate between them, and why it's critical for business owners to understand these costs.