What expense are bank fees?

What type of expense are bank fees?

Ugh, bank fees. Hate those things. Last month, July 2024, my checking account at Chase, got slammed with a $35 overdraft fee. Thirty-five dollars! It was infuriating. My balance was, like, two bucks short. Two! I swear I checked my account. I was so mad. Felt completely ripped off.

That’s definitely a financial expense. No question. It’s directly related to managing my money. It’s not like rent or utilities, which are operating expenses for my business, my little Etsy shop, “KnitWitKnits”.

Operating expenses are different. That’s stuff like yarn, shipping supplies, website fees for my shop. Those are costs directly tied to running my business. Totally separate from those darn bank fees.

So yeah, bank fees? Pure, unadulterated financial pain. A complete waste of money, in my opinion. And it ruined my latte budget for a week. Seriously, the injustice!

Under which expenses are bank charges?

Bank charges… hmm, where do they even GO? Okay, so bank fees cover business account stuff. Duh. Like, any fee?

• Account maintenance fees.
• ATM fees. Ouch!
• Transaction fees.

Ugh, transaction fees. Paying to PAY someone else. Is that even fair? I once paid, like, 10 bucks just to transfer money online. What a rip! Remember that time I over-drafted my account? Those fees felt CRIMINAL. Seriously.

• Overdraft fees.
• Wire transfer fees.
• Returned item fees.

It’s ALL bank fees. I wonder if I can write that off. Taxes, y’know?

Are bank fees operating expenses?

Ugh, bank fees. 2024 really stung. My little bakery, “Crumbs & Co.”, on Bleecker Street, felt the pinch. Those monthly fees? Brutal. My landlord, bless his heart, kept rent the same, thankfully. But the bank? No such luck. It was ridiculous. I felt like I was throwing money away every month. Seriously, it ate into my profits.

Variable costs are a nightmare too, flour prices especially. One month it’s fine, the next I’m scrambling. Bank fees are different. They’re predictable, a fixed, monthly drain. Like a leech on my business. I’d rather pay for extra insurance or even more flour. Those are related to my actual business. Bank fees just… are.

• Fixed costs: Rent, insurance, those blasted bank fees. All the same, every month.
• Variable costs: Flour, sugar, sometimes even staffing. Depending on how busy things get.

My accountant, Susan, confirmed it. Bank fees are definitely operating expenses. She’s a whiz. I trust her completely. Fixed, like my lease. An annoying, necessary evil. I hate them. The bank charges me an arm and a leg. I seriously considered switching banks, but the hassle…nah. It’s 2024, and things are tight enough as it is. Maybe next year.

What type of cost are bank charges?

Bank charges? Those sneaky little vampires, sucking the lifeblood from your profits. Definitely indirect costs. Think of them as the persistent mosquito buzzing around your carefully crafted financial masterpiece. Annoying, yes, but not directly linked to, say, the cost of your latest widget.

They’re like that weird uncle at a wedding – always present, always demanding attention (and money!), but his contribution to the overall happiness is, well, debatable. He’s there, but he’s not the reason for the celebration.

Here’s the lowdown:

• Indirect Costs: The essence of accounting mischief. You know they’re there, but pinning them down is like herding cats during a thunderstorm.
• Allocation: The art of fair (ish) distribution. Think of it as the annual office Secret Santa – some people get a lot, some get… less.
• Examples of Indirect Costs (beyond bank charges): Rent, utilities, administrative salaries – the usual suspects. Even my therapist’s bill could arguably be an indirect cost to my highly productive writing career, but let’s not go there. My therapist, bless her soul, is already struggling enough with my existential dread.

In short: Bank charges are the irritating, yet unavoidable, overhead of doing business in 2024. They’re like a persistent paper cut—not life-threatening, but definitely annoying. My accountant, Dave, would concur. He also suggested I buy a better stapler. He’s a practical guy, Dave.

What are typical banking fees?

Ugh, bank fees. Hate those things. My Chase account, for example, charges a $12 monthly fee, unless I maintain a $5,000 balance. Ridiculous!

Then there are ATM fees. Got hit with a $3 fee last week at that CVS ATM. Seriously? Three bucks. For what? Convenience? I’d rather walk ten blocks.

Overdraft fees are the worst. I swear, they’re designed to trap you. $35 every time! I had that happen twice in July 2023. Sixty-five bucks just vanished. Sixty-five!

Wire transfers… Those are also killer. I sent money to my sister in 2023, it was like $30 for the transfer. Total rip off.

Insufficient funds? Yeah, that’s another one. Same as overdraft, basically. More money down the drain.

And early account closing fees? Banks are just money-grabbing vultures. They want their pound of flesh.

Key Bank Fees to Watch Out For:

• Monthly Maintenance Fees: These are usually avoidable if you meet certain balance requirements. Mine’s $12 if under $5000.
• ATM Fees: Out-of-network fees are highway robbery. Stick to your bank’s ATMs!
• Overdraft Fees: The absolute WORST. Avoid them at all costs. I know, easier said than done.
• Insufficient Funds Fees: Like overdrafts, just a different name for the same predatory practice.
• Wire Transfer Fees: Expect to pay a significant fee for these. I paid $30, it stings.
• Early Account Closing Fees: Sneaky bank fees that can punish you for switching banks.

I need to find a better bank. Seriously. This is highway robbery. This is insane! Next time I’m switching, definitely switching.

What fees do banks usually charge?

Bank fees, huh? Well, lemme tell ya, banks are like that uncle who always needs a “small loan.”

• Monthly Maintenance Fees: Banks charge these? Supposedly for keeping your account sparkly clean, like Aunt Mildred’s dentures. I suspect they just need coffee money.

• NSF Fees: Bounced a check? Ouch. Get ready to pay. It’s like getting a speeding ticket for your money being too slow. My luck.

• Overdraft Fees: Spent a wee bit too much? BAM! Overdraft fee. My bank makes me overdraft on purpose, probably.

• Out-of-Network ATM Fees: Used another bank’s ATM? They’ll getcha! Avoid, if you can, unless you’re seriously desperate for cash. Like, really desperate.

• Check Fees: Some banks still charge for checks? What is this, 1923? Seems odd, but ok.

• Stop Payment Fees: Need to stop a payment? Sure, no prob, said the bank, after charging you $30. A rip-off!

• Inactivity Fees: Didn’t use your account? You’re penalized. It’s like getting fined for not going to the gym!

• Foreign Transaction Fees: Used your card overseas? Ka-ching! Banks love this one. Remember to carry extra cash.

Are bank charges expenses or revenue?

Bank charges? Expenses. Debit side of P&L. End of story.

• Expense: Always. Period.
• Profit & Loss (P&L) account: Where they belong.
• My coffee cost more today. Inflation, I guess.

Indirect expenses impact the bottom line. Think small drips eroding a stone. Over time, they add up. Like those streaming subscriptions. Irrelevant? Debatable.

Debit reflects decreases. Credits, increases. Accounting 101, still relevant in 2024. Know your debits from your credits. It is kind of important.

• Debit = Expense
• Credit = Revenue

The P&L shows the company’s financial performance. Bank charges are one small blip on a long ledger. A blip, yes, but recorded. Or don’t. See if I care. LOL. I don’t really care.

What are examples of operating expenses?

Ugh, operating expenses… reminds me of that summer. Summer of ’23, sweat dripping, trying to run my little Etsy shop out of my tiny Brooklyn apartment!

Rent was the killer! My share of the apartment on Bedford Ave was like, $1800, insane. Obvi operating expense #1.

Then there were the supplies. Beads, wire, clasps, ugh, it was a never-ending cycle. My desk looked like a craft explosion. Office supplies, a real drain.

Website fees… Squarespace kept sucking me dry! Then there were Etsy listing fees. Sales and marketing? Basically zero. I tried, okay? Instagram was my downfall, LOL.

Utilities went through the ROOF. Air conditioning was survival, not luxury! I’d get the bill and just want to scream.

Bank charges always felt like a personal attack. They charged for everything.

Paying my friend Sarah, who helped me pack stuff, that was a salary, right? I felt so official, then I felt guilty I couldn’t pay her more.

Accounting? Legal? Nah. I was too broke for that fancy stuff. I did have to fix my printer twice. Repairs hurt the budget.

Let me break it down. Operating Expenses:

• Rent: The constant Brooklyn rent battle.
• Salaries/Wages: Paying Sarah for packaging help.
• Office Supplies: So many beads…
• Sales & Marketing: Instagram fail.
• Repairs: My damn printer.
• Utilities: A/C in summer is a must.
• Bank Charges: Tiny charges, huge annoyance.