The administration costs budget

July 19, 2022

Administration costs include administration costs related to the general management of the business. For example, management compensation, general accounting, secretarial costs, legal fees and IT.

Commonly used accounts

Public services
Includes utility expenses such as gas, heating oil, water and electricity incurred to earn income.
• Electricity;
• Heating;
• Telecommunications
• Basic service;
• Cell phone;
• Residential line business part;
• Long distance;
• Internet;
• Web hosting.

Meal and entertainment expenses
The name of the account used to record meal and entertainment expenses and entertainment to solicit or retain business, such as tickets to theaters, concerts, sports meets, or other entertainment.

Accounting, legal and other fees
The accounting, legal and other fees account represents the professional fees paid to firms to obtain advice, services or consultations for the proper functioning of the business.

Travelling expenses
Travel and traveling expenses for the operation of the business.
• Taxi;
• Parking;
• Vehicle rental;
• Subway and bus tickets;
• Plane tickets;
• Hotel room;

Insurance
The insurance account represents the cost of insurance to protect against a risk, for example regular commercial insurance premiums on all buildings, machinery and equipment.
• Home Insurance;
• Liability insurance;
• Salary insurance;
• Disability Insurance;
• Travel insurance;
• Health Insurance;
• Property insurance;
• Car insurance;
• Directors' life insurance.

Property taxes
Municipal and school taxes

Business taxes and permits
These expenses represent the cost of permits and licenses for business activities, such as permits and annual dues paid to remain a member of a trade or professional association.

Maintenance and repair
Expenses to maintain the company's fixed assets in good condition.

Rent
Rent incurred for property used in the business, such as the rent for the land and building where the business is located.
Training costs
• Fees for employee training
• Costs of participation in a congress
• Participation in conferences

Stationery
The supplies account represents the cost of items used by the business that are indirectly used in the production of goods and services. For example, a veterinarian will list expenses for medications, syringes, and other supplies, while a plumber will list the cost of cleaning supplies.

Office expenses
These fees include small items such as pens, pencils, paper clips, stationery and stamps. Office expenses do not include certain items such as calculators, filing cabinets (furniture), desks and chairs. These are considered fixed assets.

Management and administration fees
Management and administration fees.

Delivery, transport and courier
Fees that are charged for the transportation of goods, merchandise or products by any means.

EXAMPLE