What are the expenses of a small business?

What are typical small business expenses?

Business expenses list

  • Rent or mortgage payments.
  • Office equipment.
  • Payroll costs (e.g., wages, benefits, and taxes)
  • Advertising and marketing.
  • Utilities.
  • Small business insurance.
  • Depreciation.
  • Taxes.

What are the expenses of running a business?

Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.

What are the 4 types of expenses?

Terms in this set (4)

  • Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).
  • Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)
  • Intermittent expenses. …
  • Discretionary (non-essential) expenses.

What are 10 examples of expenses?

Examples of Expenses

  • Cost of goods sold.
  • Sales commissions expense.
  • Delivery expense.
  • Rent expense.
  • Salaries expense.
  • Advertising expense.

How do you calculate business expenses?

Business owners and investors use operating costs presented in the income statement for analysis, such as the operating expense ratio, which is used to verify how well a firm can control its operating costs. This ratio is calculated by dividing operating expenses by net sales.

How do you calculate expenses?

Subtract the net income or net loss from total revenue to calculate total expenses. Treat a net loss as a negative number in your calculation. Concluding the example, subtract $100,000 from $500,000 to get $400,000 in total expenses.

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How do you calculate the cost of doing a business?

Your cost of doing business is the result of an equation. Non-reimbursable expenses, plus your desired salary, equals your total annual costs. Your total annual costs divided by your number of billable days equals your cost of doing business.

What are 3 types of expenses?

There are three major types of expenses we all pay: fixed, variable, and periodic.

What are the monthly expenses?

20 Common Monthly Expenses to Include in Your Budget

  • Housing or Rent. Housing and rental costs will vary significantly depending on where you live. …
  • Transportation and Car Insurance. …
  • Travel Expenses. …
  • Food and Groceries. …
  • Utility Bills. …
  • Cell Phone. …
  • Childcare and School Costs. …
  • Pet Food and Care.

What are the major expense items?

Let’s take a look at some of the major categories of expenses you’ll take on and how you can manage them more efficiently:

  • Wages and benefits. …
  • Rent (or mortgage). …
  • Equipment. …
  • Utilities and office supplies. …
  • Theft. …
  • Other losses. …
  • Professional fees. …
  • Marketing and advertising.