Expenses are costs incurred in the process of earning revenue, including rent, salaries, and utilities. Effective expense management is vital for profitability as it helps control costs, maximize profit margins, and ensure the efficient use of resources. By regularly monitoring and analyzing expenses, businesses can identify areas where cost savings can be achieved, eliminate wasteful spending, and allocate resources more strategically. This not only improves the bottom line but also enhances operational efficiency and competitiveness. Additionally, keeping expenses in check ensures that the company can reinvest in growth opportunities and maintain financial stability during economic fluctuations.