What Are Business Expenses?
Business expenses cover all spending required to run your office or company. Correct planning and calculation are critical for budget control and tax planning. In this guide you will find business expense categories, how to calculate labour cost, office tax, overhead rate, office fixtures and supplies — all topics that rank well on Google. For numerical estimates use our office expenses calculators.
1. Business Expense Categories
Business expenses are usually grouped as:
- Fixed: Rent, tax, insurance, loan instalments
- Variable: Electricity, water, gas, internet, phone
- Personnel: Salary, social security, labour cost, benefits
- Overhead: Cleaning, security, maintenance, office supplies, hospitality
- Fixtures and depreciation: Use of assets such as computers, furniture, equipment
To bring all these items together in one place, use our office expenses calculation tool.
2. How Is Labour Cost Calculated?
Labour cost is not only gross salary; it includes employer social security, tax, benefits and other burdens. A simple formula:
Labour cost ≈ Gross salary + Employer social security + Unemployment + Tax and obligations + Benefits
To estimate cost by type of office staff (cleaning, tea server, hospitality, support, floor attendant):
- Personnel expenses calculation
- Office cleaning staff cost
- Tea server cost
- Hospitality staff cost
- Hospitality staff vs automation comparison
For total per-employee office cost, use our per-employee office cost calculator.
3. Office Tax and How Much Tax Does a Business Pay?
“Office tax” is not a single tax; the business tax burden typically includes:
- Corporate / Income tax: On profit (e.g. 25% corporate)
- VAT: On purchases (recoverable or cost)
- Stamp duty: On contracts, payroll, etc.
- Other duties: Depends on sector
- Property tax: If the business owns the premises
“How much tax does a business pay?” depends on sector, size, profitability and legal form. Consult an accountant or tax adviser for rates and reliefs in your country.
4. How Is Overhead Rate Calculated?
Overhead rate is the ratio of indirect costs (rent, admin staff, utilities, cleaning, etc.) to direct costs or sales. Common formulas:
- On production cost: Total overhead ÷ Total direct cost × 100
- On sales: Total overhead ÷ Net sales × 100
- Per employee: Monthly overhead ÷ Number of employees
To quantify office overhead (utilities, hospitality, cleaning, etc.), use our office expenses calculation and per-employee office cost tools.
5. What Are Office Fixtures?
Office fixtures are assets used for more than one year and usually depreciated:
- Desks, chairs, cabinets, shelving
- Computers, monitors, printers, phones
- AC, projector, white goods
- Meeting tables, side tables, coat racks
- Security and network equipment
Their cost is spread over useful life (depreciation). “How many years until the business pays for itself?” is payback period = Total investment ÷ Annual net cash inflow (simplified).
6. Office Supplies and Business Expense List
Office supplies are consumable expenses — short-lived or single-use, unlike fixtures:
- Paper, pens, folders, staplers, clips
- Toner, cartridges, discs
- Cleaning supplies, towels, soap
- Tea, coffee, cups, water — plan with our office coffee cost and office water cost calculators
- Refreshments and snacks — see our office hospitality cost page
This list answers the day-to-day part of “what are business expenses?”.
7. Summary and Practical Steps
To manage business expenses:
- Categorise expenses (fixed, variable, personnel, overhead, fixtures).
- Calculate labour cost as gross plus burdens; use calculators by staff type.
- Plan tax burden (corporate/income tax, VAT, stamp duty, etc.) with an adviser.
- Track overhead rate regularly; compare with office and per-employee metrics.
- Separate fixtures and supplies; keep depreciation and stock under control.
With DrinkSelf’s office expenses calculators you can estimate coffee, water, hospitality, staff and per-employee costs in one place and build a numerical base for budget and reporting.
