Utilities Expense

What is a Utilities Expense

A business utilities expense is a cost a business pays for using the infrastructure provided by public utilities companies, they can include electricity, natural gas, water, sewage, and telephone services.

The utilities expense is based on the amount used during an accounting period, and is included as part of operating expenses in the income statement of the business.

Depending on the size of the utility bill, a business might maintain separate general ledger accounts for each utility, or combine them into one utilities expense account.

Types of Utilities Expense

Typically, utilities expenses includes costs associated with the following:

  • Telephone
  • Electricity
  • Gas
  • Water
  • Broadband
  • Sewage

For further information see the Wikipedia operating expense definition.

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