How do you calculate expenses?
submitted by expenses

Reed Toomey

You've got to start by identifying all the costs incurred during a specific period. That will be your salaries, rent, utilities, supplies, and depreciation. Then, sum up all these costs to get the total expenses for that period. You really want to make sure no stone is unturned as you add up costs. Overlooking expenses will scuttle a company pretty quickly.

Barnacle Bill

List out everything you spent money on during the time period you're measuring. Look at your bills, wages, and office supplies, and other things you had to buy for the business. Add all of those up. That's it.

Jane

Calculating expenses involves adding all costs related to the core operations of the business. You analyze financial statements and sum up costs such as direct costs (COGS) and operating expenses. Sometimes, you need to adjust for accruals or prepayments to get an accurate picture.