General Administrative Expenses Definition
As a business owner, you are likely familiar with the term “operating expenses.” Operating expenses are the costs associated with running your business on a day-to-day basis. They can include things like rent, utilities, salaries, and office supplies.
General administrative expenses are a type of operating expense that refers to the costs of running your business that are not directly related to producing goods or services. In other words, these are the costs that you incur in order to keep your doors open and your lights on, but that don’t directly generate revenue for your business.
Some common examples of general administrative expenses include:
Rent or mortgage payments for your office or store
Utility bills (electricity, gas, water, etc.)
Insurance premiums (business liability insurance, property insurance, etc.)
Accounting and legal fees
Bank charges and merchant account fees
Office supplies and equipment
