An operating expense [ie. operating expenditure] is an ongoing cost for running a facility department or business.

Operating expenses include:

  • Utilities,such as telephone, space, electric bills, etc
  • Insurance
  • travel and vehicle expenses
  • Maintenance and repairs

A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.

Operating expenses include:

  • Conferences
  • Purchase office supplies
  • Purchase repair parts

In the current economic times, most hospitals are examining operating expenses, looking for ways to reduce costs, increase efficiency and optimize resources. As a facilities manager, finding ways to improve your physical security infrastructure and processes with a reduced budget can be a daunting task.