3.1.4. Operating expenses

The operating expenses include the array of services that the company needs to acquire to operate, independently of being directly attributable to the productive process or to any other activity within the company. The following list enunciates types of expenses that a company may incur into.

Related to the productive process
  • Outsourcing services (includes services by companies or individuals)
  • Subcontracting
  • Machine and equipment maintenance
  • Technical assistance
  • Rent of Commercial spaces
  • Rent of productive spaces/ factory (only applies in cases in which the company does not own the space)
  • Warehouse rent
  • Transportation and logistics of stocks and products
  • Call center
Specialized advisory
  • Business set up
  • Legal advisory
  • Accounting services
  • Financial and business management advisory
  • Technological advisory
  • Auditing
  • Patent filing (in most situations it should be defined as an investment, although it may also be correct to set it as a cost – depends on each individual case)
  • Brand filing (in most situations it should be defined as an investment, although it may also be correct to set it as a cost – depends on each individual case)
  • Outsourcing services (includes services by companies or individuals)
  • Water
  • Electricity
  • Gas
  • Fuel
  • Office Rent (in most cases, the office and the commercial and productive areas share the same location – if that is so, only one rent should be considered)
  • Maintenance
  • Coworking
  • Meeting rooms renting
  • Gardening
  • Cleaning services
  • Communications (example: cell phones or internet services)
  • Office materials and tools
  • Printing
  • Documentation
  • Document management
  • Office amenities (example: on-site meals and drinks)
IT related
  • Website development and maintenance
  • Web hosting
  • Other hosting services
  • App development services
  • Business suits (example: Microsoft Office)
  • IT advisory
  • Other IT services
  • SEO and social media management
  • Design
  • Printing services
  • Event planning
  • Event hosting
  • Event decorations and setup
  • Event catering
  • Market research services
  • Communication agencies’ services
  • Branding agencies’ services
  • Fees for showroom space in fairs and conferences
  • Sponsorships
Travelling and accommodation
  • Travelling fees (example: air flight fares)
  • Public transportation
  • Taxis, Uber and similar services
  • Hotel and other hospitality services
  • Restaurant expenses (when applicable – be aware that in some countries the tax systems restrict these expenses or apply taxes over restaurant expenses)
  • Representation expenses
Other services
  • Insurances
  • Other services
  • Commissions
  • Royalties
  • Representation expenses
  • Offerings to clients
  • Vehicle renting
  • Security and surveillance services
  • Health plans for employees
  • Perks for the employees
  • Facility services

Important: This list exemplifies the most common costs. It does not enunciate every operational expenditure possible. Also, it is quite unlikely that a project has all of these examples, therefore you should only use the ones that apply.