Understanding the types of expenses is crucial for categorizing and managing them effectively. Common business expenses include:
Operational Expenses: These include rent, utilities, payroll, and supplies necessary for daily operations. Marketing and Sales Expenses: Costs associated with advertising, promotions, and sales activities. Administrative Expenses: Office supplies, software subscriptions, and other administrative costs. Travel and Entertainment: Costs related to business travel and client entertainment. Research and Development: Expenses incurred for developing new products or services.