All 14 Expense Categories Explained
Clear definitions and real-world examples for every one of the 14 expense categories in AskBiz, so you always know which category to choose.
Key Takeaways
- AskBiz has exactly 14 expense categories covering the full range of typical small-business outgoings.
- Each category has a specific meaning — using the right one keeps your Category Breakdown bar accurate.
- When a purchase spans multiple categories, use the primary purpose of the spend to decide.
Premises and Infrastructure Costs
Rent/Lease covers any payment for the physical or virtual space your business uses. Examples: monthly office rent, co-working membership fees, warehouse lease payments, vehicle lease instalments, storage unit rental. Utilities covers ongoing infrastructure services tied to a premises or operations. Examples: electricity, gas, water, business broadband, telephone landline, waste disposal, CCTV monitoring service.
People and Technology Costs
Payroll covers all costs related to employees and contractors. Examples: monthly salary payments, PAYE employer contributions, employer National Insurance contributions, contractor invoices, freelancer payments. Software/SaaS covers subscription fees for digital tools and cloud services. Examples: Slack, Notion, Shopify, Google Workspace, Xero, Salesforce, Adobe Creative Cloud, AWS, GitHub, Zoom. Note that one-off purchases of physical software are Equipment, not Software/SaaS.
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Marketing and Ads covers all spending on customer acquisition and brand promotion. Examples: Google Ads, Facebook and Instagram ad spend, sponsored LinkedIn posts, influencer fees, PR agency invoices, print advertising, exhibition stand costs. Shipping covers the cost of sending goods to customers or between locations. Examples: Royal Mail postage, DHL or FedEx courier fees, Parcel Monkey shipments, pallet delivery charges, import duty payments on inbound goods.
Operational and Physical Costs
Supplies covers consumable items used in day-to-day operations. Examples: stationery, printer paper and toner, packaging materials, cleaning products, coffee and kitchen supplies for the office, small tools that are consumed or regularly replaced. Travel covers movement of people for business purposes. Examples: train and bus tickets, flights, taxi and rideshare fares, hotel accommodation, mileage claims for personal vehicle use, parking charges. Meals and Entertainment covers food and drink purchased in a business context. Examples: client lunch, team celebration dinner, coffee meeting with a supplier, conference catering.
Professional, Capital, and Compliance Costs
Professional Services covers external expertise hired on a project or retainer basis. Examples: accountant fees, solicitor invoices, management consultant fees, IT support contractor, business coach, architect or surveyor charges. Equipment covers the purchase of physical assets expected to last more than one year. Examples: laptop, printer, desk and chairs, point-of-sale terminal, manufacturing machinery, company vehicle purchase. Insurance covers all insurance premiums. Examples: employers liability, public liability, professional indemnity, building and contents, cyber liability, business interruption insurance. Taxes and Fees covers statutory payments and regulatory fees. Examples: Corporation Tax, VAT payments to HMRC, council business rates, Companies House filing fees, trade licence fees, bank charges. Other covers any legitimate business expense that does not fit clearly into the above 13 categories. Always add a note when using Other so you can recategorise later if needed.