Business expenses: what is included in the concept and how to keep records
Posted: Sat Feb 01, 2025 9:35 am
What are they? Commercial expenses are expenses that are not related to the production of the product: delivery, wages, marketing activities, depreciation. They are included in accounting, and the company must prepare a budget and make write-offs.
What to pay attention to? Commercial expenses affect the profitability, pricing, range and economic efficiency of the organization. Therefore, it is necessary to regularly analyze and optimize expenses.
The article explains:
The essence and types of commercial expenses
The role of commercial expenses in the company
Accounting of commercial expenses
Budgeting for Business Expenses
Commercial expenses in cost price
Example of writing off commercial expenses
Analysis of commercial expenses
Optimization of commercial expenses
Frequently Asked Questions About Business Expenses
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The essence and types of commercial expenses
Commercial expenses are funds spent on the sale of finished products or goods, their packaging, advertising, transportation, etc.
To avoid making a mistake in defining expenses as commercial, you should pay attention to two important points:
These expenses are not related in any way to the rest of the company's activities that are not related to core production or trade.
Let's say a company decided to sell some fixed asset and, in order to speed up the process, placed an advertisement. The costs of this, as well as the costs of delivering the purchased item to the buyer, should be attributed to other costs, not to commercial ones.
Commercial expenses
Source: shutterstock.com
The first step is to correctly identify the costs as commercial and not other.
Commercial expenses affect the financial result, but not immediately. At first, account 44 ("Selling expenses") simply collects all the information about the costs of the sales process. It does not affect anything.
And only at the moment when these data are transferred from account 44 to account 90, the costs of selling the product become commercial. And commercial expenses on account 90 are a reduction in operating profit. The part of the selling costs that fell on the remainder of the goods will be listed on account 44.
The list of commercial expenses does not have a strict formulation. When accounting for and classifying this type of costs, you can refer to the Chart of Accounts, which lists all possible costs attributed to account 44, as well as PBU 10/99 "Organization Expenses" and FSBU 5/2019 "Inventories".
The composition of commercial expenses and their structure depend on the type of activity of the enterprise.
What to pay attention to? Commercial expenses affect the profitability, pricing, range and economic efficiency of the organization. Therefore, it is necessary to regularly analyze and optimize expenses.
The article explains:
The essence and types of commercial expenses
The role of commercial expenses in the company
Accounting of commercial expenses
Budgeting for Business Expenses
Commercial expenses in cost price
Example of writing off commercial expenses
Analysis of commercial expenses
Optimization of commercial expenses
Frequently Asked Questions About Business Expenses
5 Scenarios for Using Neural guatemala email list Networks to Increase Website Profits by 40%
Download for free
The essence and types of commercial expenses
Commercial expenses are funds spent on the sale of finished products or goods, their packaging, advertising, transportation, etc.
To avoid making a mistake in defining expenses as commercial, you should pay attention to two important points:
These expenses are not related in any way to the rest of the company's activities that are not related to core production or trade.
Let's say a company decided to sell some fixed asset and, in order to speed up the process, placed an advertisement. The costs of this, as well as the costs of delivering the purchased item to the buyer, should be attributed to other costs, not to commercial ones.
Commercial expenses
Source: shutterstock.com
The first step is to correctly identify the costs as commercial and not other.
Commercial expenses affect the financial result, but not immediately. At first, account 44 ("Selling expenses") simply collects all the information about the costs of the sales process. It does not affect anything.
And only at the moment when these data are transferred from account 44 to account 90, the costs of selling the product become commercial. And commercial expenses on account 90 are a reduction in operating profit. The part of the selling costs that fell on the remainder of the goods will be listed on account 44.
The list of commercial expenses does not have a strict formulation. When accounting for and classifying this type of costs, you can refer to the Chart of Accounts, which lists all possible costs attributed to account 44, as well as PBU 10/99 "Organization Expenses" and FSBU 5/2019 "Inventories".
The composition of commercial expenses and their structure depend on the type of activity of the enterprise.