What are costs?

Definition of costs

Costs, in the context of running a business, are what an organisation has to pay for.

Nearly every business will have to ‘spend money to make money’. For instance, a business will nearly always need a website. That website will need to be built and the developer who builds the website will usually charge a fee for their services. This fee is a cost.

A business’s costs may be day-to-day running costs, such as paying for electricity to light or heat the business’s premises, or they may be larger, one-off costs, such as buying a new computer or new desk.

Business tips and news

If you check this box we'll include information and updates about Making Tax Digital along with your general business tips and news.

We’ll never share your details with third parties for their marketing purposes. For details on how we use customer information, see our General Privacy Notice. You can opt out of marketing emails any time by clicking on the unsubscribe link in the footer of any email.

Related Definitions

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.