First, the concept of financial expenses:

Financial expenses refer to the expenses related to fund-raising and investment activities in the company's business activities, including interest expenses, exchange losses and debt restructuring losses. Among them, interest expense refers to the interest paid by the company for the loan.

II. Financial expenses include:

When the company applies for a loan and is approved, the interest paid by the loan is included in the company's financial expenses. This is because the loan interest belongs to the company's financing cost and needs to be included in the expenses to accurately reflect the company's economic situation and financial performance.

In accounting statements, financial expenses are usually listed as indirect expenses in the income statement (or income statement), including interest expenses and handling fees. The increase of these expenses will reduce the company's net profit and directly affect the company's profitability and financial health.

Third, the impact and management:

Economic cost: the payment of loan interest increases the economic cost of the company. The company needs to evaluate the interest rate and term of the loan and choose the most suitable financing method to reduce the financial cost.

Impact on profit: High financial expenses will reduce the company's net profit and affect shareholders' rights and interests and the market value of the company's stock. Therefore, the company needs to manage loans reasonably, control interest expenses and improve operating efficiency.

Financial risk: Long-term high loan interest may increase the company's financial risk. Companies need to comprehensively consider financial expenses, solvency and profitability to ensure that loans will not pose a threat to the stability of the company.

Tax preference: In some countries, the loan interest paid by the company may enjoy tax preference, and the company can legally and reasonably reduce the pre-tax profit and tax burden according to relevant laws and regulations.

To sum up, it is a basic regulation in financial accounting that the interest of company loans is included in the financial expense account, which is an important way to accurately reflect the company's operating costs and economic situation. Companies need to make prudent decisions on loans and financing, and rationally plan the financial structure, so as to minimize financial expenses and improve the competitiveness and sustainable development ability of enterprises.