Entering General, Startup, and Operating Expenses

In the Expenses section of your forecast, you can estimate regular monthly, yearly, and one-time operating expenses such as rent, utilities, insurance, marketing, office supplies, and other costs required to run your business.

If your company is just getting started, you can also include one-time or short-term start-up expenses in the early months of your forecast.

Upmetrics can now help you set up these expenses automatically. Simply describe the costs involved in running your business, and the system can draft relevant expense categories and items with starting values. You can also choose to set them up manually.

Common Expenses you should not include here

There are several special expenses that are covered elsewhere in the forecast. To avoid duplicate entries, do not add these costs to the Expenses section.

The table below shows where to enter some of the most common special expenses:

For more details, see What is the difference between direct costs and expenses?

Adding an Expense

1

Go to the Forecast tab in the Finance Forecasting module and select Expenses.

You will see a guided setup asking What does it cost to run the business?

2

Enter a short description of the expenses involved in running your business. You can include costs such as rent, utilities, insurance, vehicle expenses, software subscriptions, marketing, and other operating expenses.

Once you have entered the details, click Draft my expenses.

TIP: Include the main types of expenses and any approximate amounts you already know. This gives the system more information to create a useful starting point.

3

Upmetrics will use your description to create expense categories and expense items for your forecast.

Review the generated expenses and their starting assumptions. You can edit or update individual items as needed to better match your business.

NOTE: The generated expenses and figures are intended as a starting point. Review them carefully and adjust the assumptions to match your expected costs.

Adding Expenses Manually

1

If you prefer to create your expenses manually, click I'd rather set it up myself from the expense setup screen.

2

Enter the name of the expense category and at least one expense item within that category.

You can click Add another expense to add more items to the same category or Add a category to create another expense category.

When you are ready, click Create these.

3

The system will create the expense category and item. Locate the expense item you want to configure, click the three-dot menu, and select Edit.

4

The expense assumption form will open. Review the expense name and select the method you want to use to forecast the expense.

You can choose from the available expense types depending on how the cost behaves in your business.

5

Constant Amount: Choose this option when you expect the expense to remain relatively consistent over time. Enter the amount you expect to spend per day, month, quarter, or year.

You can also enter an expected percentage change over time. For example, you can increase rent by a certain percentage each year.

Per Unit: Choose this option when your expense changes depending on the number of units involved.

TIP: For one-time expenses or costs that fluctuate from month to month, use the One-time or varying amount over time option.

Per Employee Expense: Use this option for expenses that depend on the number of employees, such as training, work equipment, or travel allowances.

When you select Per Employee Expense, choose the applicable personnel expense. Upmetrics will calculate the expense based on the number of employees associated with that personnel entry.

% of Revenue: Use this option when the expense depends on the revenue your business generates. You can calculate the expense as a percentage of total revenue, a specific revenue stream, or an individual revenue item.

Varying Amounts or One-time Amount: Choose this option when the expense changes over time or occurs only once. Enter the amount in the applicable month or months.

6

Time Duration: Select when the expense should begin and end.

Review your assumptions and click Save.

Manage Your Expense Groups and Items: Edit, Copy, or Delete

1

To duplicate a complete expense group, click the three-dot menu for the group and select Copy Group.

This creates a copy of the group along with its associated expense items. To remove the group, select Delete Group.

2

To manage an individual expense item, open its three-dot menu. Select Duplicate Item to create a copy or Delete to remove it.

TIP: You can move finance items from one group to another. See our help guide here.

TIP: You can also switch finance items between Cost of Sales and Expenses. Click here for more.

3

To update an expense item's assumptions, open its three-dot menu and select Edit.

The assumption form will open, where you can make the required changes and save them.

Where does this entry appear in the financial statements?

Your expense entries appear as an itemized list under Operating Expenses in the Profit & Loss statement.

Expenses also affect the Balance Sheet and Cash Flow statement. They are used in calculating your available cash, which appears in the Assets section of the Balance Sheet.

In the Cash Flow statement, your expense entries are included in the applicable operating cash flow calculations.

Once your expenses are set up, you can return to the Expenses section at any time to review, edit, duplicate, or remove individual items as your forecast changes.