Week 4 Day 3 Action Items

Day 3

• [ ] Explore a sample expense categorization system.
• [ ] Begin categorizing your current business expenses.

Sample Expense Categorization System

Creating an expense categorization system involves grouping expenses into meaningful categories that provide clarity and organization for financial tracking and analysis.

Operating Expenses:

• Rent and Utilities: Rent payments, electricity, water, gas, internet, and other utility bills.
• Office Supplies: Expenses for stationery, printer ink, paper, and other office supplies.
• Insurance: Payments for business insurance coverage.
• Maintenance and Repairs: Costs related to office or equipment maintenance and repairs.
• Travel and Entertainment: Expenses for business travel, client entertainment, and related costs.

2. Personnel Expenses:

• Salaries and Wages: Payments to employees for their work.
• Benefits: Costs for employee benefits such as healthcare, retirement plans, and bonuses.
• Training and Development: Expenses for employee training and skill development programs.

3. Marketing and Advertising:

• Advertising: Costs associated with paid advertisements, including online and print.