Operating expense
The cost of running the business: rent, software, meals, insurance, payroll. The 6000–7999 accounts.
In Solo Superstars
Most bank transactions land in an operating expense account. Category variance and Financial Watch both watch these for unusual jumps.
Example
Rent 3,000 + software 2,340 + meals 412 + insurance 600 + … = operating expenses 8,900.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- OpEx
- overhead
Related
- Cost of goods sold — What the things you sold cost you to buy or make. Subtracted from revenue to get gross profit.
- Income statement — Revenue, costs and expenses over a period, ending in net income. The report that says whether you made money.
- Account class — The five fundamental kinds of account: asset, liability, equity, revenue, and expense. Every ledger account is one of them.