Operating Expenses (or Cogs) are the necessary costs required to run a business. They include things like payroll expenses, rent, utilities, insurance and other overhead costs. Essentially, they’re anything you have to pay for in order to keep your business running smoothly – and they can quickly add up! Knowing how much money needs to be allocated to operating expenses can help a business stay on track with its budget and ensure there’s enough cash flow to cover daily operations.