Total Operating Expenses (TOE) is a business term that describes all expenses incurred in the regular operation of a company. It includes all costs from daily operations, such as payroll, rent and utilities, to sales and marketing expenses like advertising and promotions. By tracking its total operating expenses, a company can determine how much money it needs to generate to remain profitable and plan for future growth. TOE makes budgeting and forecasting more accurate and reliable, allowing business leaders to make smart decisions when it comes to their bottom line.