Recurring expenses are the ones repeated from time to time. These are the forecasted expenses/cash outflows reflected in the budget. On the other hand, non-recurring expenses are one-time or in-frequent expenses (may not be in the budget), which may be challenging to predict.
Please note that the only difference between recurring and non-recurring expenses is in terms of frequency, while accounting treatment, presentation, and other details remain exactly the same.
Examples of recurring expenses
- Electricity & telephone bills.
- Office and warehouse rentals.
- Monthly salaries of employees.
- Subscription charges.
- Interest expense on the outstanding loan.
Examples of non-recurring expenses
- Sudden repair is required in the production machine.
- Damages paid due to court order.
- Unplanned business travel expenses.
- Cost of switching the office.
Conclusion
A recurring expense is one that occurs frequently and is incurred in each accounting period. These expenses can be forecasted/predicted in the business budget.
Examples of recurring expenses include electricity & telephone bills, subscription charges, and salaries, etc.
Non-recurring expenses are one-off expenses that are not incurred frequently and are not usually part of the budget.
Examples of non-recurring expenses include sudden repair & maintenance charges, the cost of switching the office, and damages paid due to court order etc.
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