{"id":161553,"date":"2025-10-20T17:42:47","date_gmt":"2025-10-20T15:42:47","guid":{"rendered":"https:\/\/www.jedox.com\/?p=161553"},"modified":"2026-03-11T15:51:23","modified_gmt":"2026-03-11T14:51:23","slug":"what-is-opex","status":"publish","type":"post","link":"https:\/\/www.jedox.com\/en\/blog\/what-is-opex\/","title":{"rendered":"What is OPEX? Your guide to operating expenses"},"content":{"rendered":"

Knowing your operating expenses (OPEX) inside and out is crucial for smart financial decisions and business planning. These ongoing costs directly impact your cash flow, profitability, and ability to scale operations efficiently.<\/strong><\/p>\n

This guide provides practical examples and covers different types of OPEX. We’ll also look at how enterprise performance management (EPM) tools<\/a> can streamline your approach to managing and forecasting these essential business costs.<\/p>\n

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What are operating expenses (OPEX)?<\/h2>\n

OPEX or Operating expenses are the everyday costs of running your business, such as employee salaries and rent. These aren’t the costs directly tied to making your products or delivering your services, but they’re the essential expenses that keep your operations running smoothly.<\/p>\n<\/div>\n

Unlike purchasing equipment or property, operating expenses don’t create lasting assets for your company. They’re consumed during regular business activities and need to be paid for again in future periods to maintain operations.<\/p>\n

From an accounting standpoint, operating expenses appear on your income statement below the gross profit line and are fully deductible in the year they’re incurred. Since these expenses are subtracted from revenue to calculate your operating income, they play a crucial role in determining your company’s operational efficiency and profitability.<\/p>\n

Examples of operating expenses<\/h2>\n

Operating expenses cover a wide range of business costs that support day-to-day operations.
\nCommon examples include:<\/strong><\/p>\n