Simplicable Guide

34 Examples of Business Expenses

John Spacey, January 27, 2016 updated on June 18, 2020

A business expense is a business cost for goods and services that are used up quickly. As a rule of thumb, periodic payments such as monthly wages are considered expenses. The purchase of capital that has a useful life that extends into the future is generally considered an investment in an asset as opposed to an expense. The following are common types of expenses.

Accounting Fees	Administration Fees
Advertising	Amortization
Bank Fees	Communication Expenses
Consulting Fees	Cost of Goods Sold
Depreciation	Education & Training
Employee Benefits	Equipment Rentals
Freight	Insurance
Interest Payments	Legal Fees
License Fees	Maintenance
Management Fees	Marketing Expenses
Materials	Meals & Entertainment
Office Supplies	Pension Plan Contributions
Professional Fees	Property Taxes
Regulatory Fees	Rent
Repair Costs	Salaries
Sales Commissions	Travel Expenses
Utilities	Vehicle Expenses

Generally speaking, firms try to attribute production, marketing and sales expenses to cost of goods sold where possible. For example, firms may include factory salaries in cost of goods sold and other types of general administration salaries as a separate expense. An accurate cost of goods sold figure is essential to understanding the profitability of a firm.

Notes

There are many nuances in determining what is a valid business expense for the purposes of financial reporting and taxes. The list above is a general and global view of a topic as opposed to specific tax or accounting advice.

Overview: Business Expenses
Type	Business Costs
Definition (1)	A business cost for goods and services that are used up quickly.
Definition (2)	A business cost for something that is used within a financial period or year.
Definition (3)	A business cost that is immediately tax deductible.
Notes	Expenses may be either operating expenses or capital expenses.
Related Concepts	Capex Opex