Add up how much you spent on all of your utility bills within the time period you’re looking at.
Calculate your company’s overall spending throughout the same time period. You may get a wide picture of your expenses, including labor, rent, equipment, supplies, insurance, and everything else. Alternatively, depending on the categories you wish to compare to utility prices, you can sum a specific category of expenses, such as all non-labor costs.
To calculate the decimal part of utility expenses, divide total utility costs by total business costs. If your annual utility costs are $25,000 and your overall business expenses are $400,000, the percentage of your total costs that your utility charges represent is $25,000 divided by $400,000, or 0.0625.
To calculate the percentage, multiply the decimal value by 100, which you can easily do by moving the decimal point two places to the right. A decimal value of 0.0625 multiplied by 100 is 6.25 percent, for example. This is the amount of money spent on utilities as a percentage of total business costs.
Collect utility bills for a specific time period. If your utility expenses fluctuate seasonally, you should investigate them for at least a year. Include costs for expenses such as electricity, gas, water, heating oil, phone, and Internet access, which are all considered utilities. Other services, such as trash removal, may be offered by some firms.
What constitutes a business’s utility expense?
The cost of power, heat, sewer, and water during a reporting period is referred to as utilities expense. Expenses for ongoing telephone and internet service are sometimes included in this category. Because there is frequently a fixed fee component as well as a variable price based on actual usage, this item is classified as a mixed cost.
How do you figure out the cost of utilities per square foot?
The size of your home can have a significant impact on your electricity bills. As a result, it’s a good idea to calculate how much electricity each square foot costs.
Take your most recent monthly electric bill and divide it by the square footage of your home to get an approximation of your own expenses per square foot. If your energy cost is higher than what is displayed in this graph, you might think about switching suppliers to save money.
What are the different types of utilities that are used in a business?
- The utility industry includes companies that supply essential services such as electricity, natural gas, and water.
- Utilities make a profit, but they are a public service, so they are heavily regulated.
- Utility stocks are typically purchased as long-term investments because of their dividend income and reliability.
- During macroeconomic downturns, the utility sector performs well as a defensive play.
- Some analysts predict considerable growth for the utilities business in the 2020s as a result of the trend toward “clean” energy, as well as competition-enhancing legislation, initiatives, and investments in renewable energy resources.
What are some instances of expenses related to utilities?
- Electricity/gas (This includes lights and other electrical demands in addition to heating and cooling)
If you’re moving into a new place, you might ask a landlord, apartment manager, or realtor about the average cost of utilities in the area.
If you’re renting, your landlord or manager may be able to provide you with information on utility bills from other tenants or link you with someone who already lives there. A realtor should be able to supply you with copies of the current homeowner’s utility bills if you’re buying a house.
What method do you use to calculate utility costs?
To get an estimate of your electricity bill, enter your address into our tool. We estimate what you may owe1 by multiplying the address’s previous energy usage by 10 cents per kWh or an average power price of your choice.
Find the kWh of each appliance and multiply each value by your current electricity rate to get a more precise estimate. To accomplish this, take these four steps:
- Calculate the wattage of the appliance and multiply it by the number of hours it is utilized.
- To convert watts-hours to kilowatt-hours, multiply the amount by 1,000. (kWh)
- Repeat these steps to determine the cost of energy for each item, then add them all up to determine the monthly cost of energy for your complete home.
What is the maximum percentage of utilities that I can deduct for my home business?
You can deduct 10% of the cost of your mortgage interest or rent, utilities (such as electric, water, and gas bills), and homeowners insurance if your home office is one-tenth of the square footage of your home. Other whole-house expenses, such as cleaning and exterminator services, can be deducted at a rate of 10%.
What is the average amount of electricity used by a small business?
Heating and cooling in commercial buildings consumes an average of 5 kWh/square foot 7 kWh/square foot if ventilation is included while the exact quantity depends on the size of your business and the climate in your location.
What is the best way to estimate my electric bill?
You’ll need to find out how much energy each of your appliances and electronic devices use in order to compute your electric bill. Estimating your electricity usage would be as simple as looking at an itemized supermarket ticket in an ideal world. You’d be able to see just how much you spend on the dishwasher, laundry, TV, and a month’s supply of hot water. That technology is growing closer every day, but for now, you’ll have to perform some arithmetic or spend some money to get an appliance-by-appliance analysis.
What is the average amount of electricity used in a 3000 square foot home?
In 2015, the average home used 12,271 kWh, while homes with a square footage of 3,000 square feet or more used 14,210 kWh. Consider why your electricity use is more or lower than the averages as you compare your usage to them.
Is it true that rent is a utility expense?
Other Utilities Expenses Classifications Administrative expenses include utilities used for administrative tasks. Rent, advertising, and marketing are all included. Utilities used to assist with manufacturing activities are frequently accounted for in the factory overhead account.