16 Examples of administrative expenses

  • Jul 26, 2021
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The administrative expenses they are related to the expenses that a company has, which are not directly related to a specific function such as manufacturing, production or sale. They are totally related to the company and not to an individual department.

These types of expenses are not necessary for the execution of the basic functions of the company. However, they are essential to the success of it, as long as they are to maximize its efficiency. Centralized organizations mostly have administrative expenses higher than decentralized companies.

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In this article you will find:

General examples of business administrative expenses.

Administrative expenses

The fixed expenses of an organization are those that must be assumed regardless of the amount of work or billing. Here are some examples of administrative expenses operating generals:

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1 Employee salary expenses, which in some cases are determined as operational, since they are related to the execution of products.
2 Telephone bill accounts.
3 Leasing of commercial premises.
4 Correspondence expenses.
5 Salary payment of senior executives.
6 Purchase of different office supplies.
7 Business travel expenses.
8 Purchase of folios and folders.
9 Water and electricity billing expenses.
10 Fees for accounting services corresponding to the company.
11 Salary expenses of the secretaries.
12 Contributions destined for social security.
13 Human Resources costs if the company is not mainly dedicated to that.
14 Fees for the legal advice of the organization.
15 Purchase of reams of sheets for printer use, if not a print shop.
16 Investment in expenses for advertising or advertisements.

Examples of administrative expenses of the Support Areas of a company

Next, the examples of administrative expenses that are used in the different Support Areas that have functions will be shown. administrative that every company should take into account when assuming its business expenses, these are divided into the following groups:

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  • Logistics.
  • General Administration.
  • Human Resources.
  • Marketing.
  • Technology.
  • Communications.

The objective of each of these groups is the corresponding vision of who should make the expense within the company and who is the one who has total control of the expenses.

Management has the obligation to account for the expenses incurred during its period of analysis and control, which means that has the responsibility to comply with the budget, explain the derivations and make proposals for the reduction of expenses.

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These groups of Support Areas comprise subdivisions that can be carried out in an orderly manner, thanks to the corresponding administration, the efficient control of expenses and the follow-up of the items accountants. In this way, each of the groups has its own examples of administrative expenses following:

Logistics:

  • Rentals.
  • Air-conditioning.
  • Electric power.
  • Rental and maintenance of photocopiers.
  • Drinking water.
  • Coffee shop.
  • Administrative and commercial printing.
  • Parking, fuel and vehicle maintenance, corrective or preventive.
  • Office and real estate maintenance.
  • Maintenance of equipment and furniture.
  • Mass correspondence service, local, national and international.
  • Plastic cards in case they are issued by the company.
  • Desk and toilet supplies.
  • Surveillance, filing, cleaning, printing and photocopying service.
  • Transfers.

General Administration:

  • Quotes.
  • Banking operations expenses.
  • Tenders.
  • Collection service.
  • Professional fees.
  • Donations to institutional centers.
  • Local government taxes.
  • Legal, notarial and registration expenses.
  • Insurance
  • Mobility with and without proof of payment.
  • Public relations.
  • Expenses for national and international travel.
  • Travel expenses for national and foreign trips.

Human Resources not including salaries:

  • Mobility for jobs that are extraordinary.
  • Budgets for uniforms.
  • Medicine cabinet budget.
  • Special attention to staff.
  • Training and training in a centralized and decentralized way.
  • Budget for staff celebrations.
  • Budget for managerial snacks, common and for extraordinary works.

Marketing:

  • Forecasts of events, loyalty and institutional.
  • Diversity of events.
  • Direct marketing.
  • Special projects.
  • Institutional image and image by product.
  • Advertising of products, institutional and loyalty.
  • Market research.
  • Notices and publications.
  • Variety of materials.
  • Image by product and institutional image.
  • Different eventualities.

Technology:

  • Software rental and maintenance.
  • Rental and maintenance of computer equipment.
  • Cabling system.

Communications:

  • Fixed and mobile telephony.
  • Maintenance of communication equipment.
  • Data transmission system.

After seeing the examples of administrative expenses, it can be said that these are a fundamental part of business activities, therefore, it is necessary that the documents accounting, as well as administrative and operational expenses are adequately reflected for the efficient operation of the business.

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