Operating expensesStarter+
How expenses such as rent and payroll are spread over time and across stores.
Operating expenses are costs outside the order flow: payroll, rent, software, insurance. They reduce net profit but not contribution profit.
How an expense is spread over time
| Repeats | How it is counted |
|---|---|
| Monthly | The amount ÷ days in that month, on every day |
| Quarterly | The amount ÷ days in that quarter, on every day |
| Annual | The amount ÷ days in that year, on every day |
| Once | The full amount on the start date |
An expense stops after its end date, if it has one.
Example: a $3,000 monthly rent in a 30-day month adds $100 to each day. A report for 1–7 of that month carries $700 of rent.
For today, recurring expenses count only for the part of the day that has passed. See Partial-day proration.
Expenses across several stores
Each expense has a scope:
- Store: belongs to one store.
- Brand: split equally across the brand's stores.
- Company-wide: split across your stores, equally or by weights you set.
Imported expenses
Expenses synced from QuickBooks or Xero are imported for completed months only, so the current month shows no imported overhead until it closes. See Accounting.
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