Operating Expenses are the day-to-day costs associated with running a business, such as salaries, rent, and utilities. They are typically necessary for normal operations and are recurring expenses. Non-Operating Expenses, on the other hand, are one-time expenses that are not central to a company’s core competencies. Examples include legal fees, interest payments, or the cost of acquiring another business. Understanding the difference between operating and non-operating expenses can be critical in ensuring your business stays profitable and afloat.