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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Last modified May 30th, 2018 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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