Operating Expenses

Control and analyze all fixed and variable expenses of your business to maintain profitability.

What are Operating Expenses?

Operating expenses are all costs necessary to keep your business running, BESIDES the direct costs of products (ingredients). They include:

Fixed Expenses

Don't vary with sales:

• Rent
• Base salaries
• Insurance
• Subscriptions (software, etc.)

Variable Expenses

Change based on sales volume:

• Electricity and gas
• Delivery/shipping
• Payment commissions
• Employee overtime

💡 Key Difference: Ingredient costs are calculated automatically per product. Operating expenses you register manually in the "Expenses" module.

How to Register Operating Expenses

Go to the "Expenses" module from the admin panel

Click on "Register New Expense"

Fill out the form with the expense information:

• Category: Type of expense (Services, Salaries, Rent, etc.)
• Description: Expense detail (e.g., "Electricity bill January 2024")
• Amount: Amount spent
• Date: When the expense occurred
• Store: Which store it corresponds to (if applicable)

Optionally attach a receipt (invoice, receipt)

Save the record. The system will automatically include it in your financial reports.

Common Expense Categories

Rent and Properties

Rent, utilities, municipal taxes, building maintenance.

Utilities

Electricity, water, gas, internet, phone, cleaning services.

Staff and Salaries

Salaries, overtime, social charges, uniforms, training, bonuses.

Maintenance and Repairs

Equipment repair, preventive maintenance, spare parts, tools.

Marketing and Advertising

Online/offline advertising, social media, graphic design, promotions.

Administrative and Legal

Accountant, lawyer, insurance, licenses, permits, software/subscriptions.

View Operating Expenses Report

The operating expenses report is integrated into the Financial Dashboard. From there you can:

✓See total expenses: By period (day, week, month, year)

✓Breakdown by category: Which types of expenses consume most money

✓Time comparison: Compare expenses from current vs previous period

✓Filter by store: See expenses from each store separately

✓Real net profit: Revenue - Product costs - Operating expenses

How to Analyze your Operating Expenses

📊 Operating Expense Ratio

Calculate what percentage of your revenue goes to operating expenses:

Ratio = (Operating Expenses / Total Revenue) × 100

• < 30% - Excellent expense control

• 30-40% - Acceptable for most businesses

• > 40% - Attention: review and optimize expenses

🔍 Identify Abnormal Expenses

Compare your expenses month to month. If an expense increases significantly (>20%) without apparent reason, investigate:

• Did the supplier price change?
• Is there waste or leakage (water, electricity)?
• Is it normal seasonal expense?
• Was there an error in the record?

💰 Look for Savings Opportunities

Strategies to reduce operating expenses:

• Negotiate annual contracts with service providers
• Implement energy-saving measures (LED, thermostats)
• Review subscriptions: are you actually using all services?
• Optimize staff shifts according to peak hours
• Consider more economical alternatives for marketing

Best Practices

📅 Register Expenses Regularly

Don't wait until the end of the month. Register each expense when it occurs for accurate real-time data.

🗂️ Use Consistent Categories

Keep the same categories each month to easily compare and analyze trends.

📎 Attach Receipts

Save invoices and receipts digitally. It will help with accounting, audits, and supplier claims.

🎯 Set Budgets

Set monthly limits for each expense category. The system will alert you if you're exceeding.

Common Mistakes to Avoid

❌Not recording small expenses: Small expenses add up. Record everything, even minor purchases.
❌Mixing personal and business expenses: Keep separate accounts. Only record business expenses.
❌Not reviewing contracts regularly: Services you contracted years ago may have better prices now.

Frequently Asked Questions

Do ingredient costs go in operating expenses?

No. Ingredient costs are calculated automatically per product in the Inventory module. Operating expenses are ADDITIONAL costs like rent, utilities, salaries, etc.

Can I edit or delete a registered expense?

Yes, from the "Expenses" module you can edit any expense to correct errors. You can also delete it if it was registered by mistake.

How do operating expenses affect my net profit?

Your net profit is calculated: Revenue - Product Costs - Operating Expenses = Net Profit. Operating expenses directly reduce your final profit.