The Fixed Monthly Expenses Every Business Should Track
Introduction
Revenue is exciting. Fixed expenses are boring. And yet, the difference between a business that survives its third year and one that quietly closes usually comes down to how well the owner knew — and forecast — the fixed monthly base.
Table of contents
- The unavoidable eight
- Marketing: fixed or variable?
- Why recurring obligations deserve their own model
- Business forecasting from a solid base
- Frequently asked questions
- Conclusion
The unavoidable eight
Rent
Predictable, contractual, first payment out of the account each month.
Payroll
Salaries, employer contributions, benefits. Model gross, not net.
Accountant
Monthly fee plus year-end. Include both in the fixed base.
EFKA
Owner contributions. Small businesses often forget these outside of payroll.
Loans
Principal and interest, separately if possible, so refinancing shows up cleanly.
Utilities
Electricity, water, gas — variable inputs to a fixed obligation.
Internet & telephony
Business plans, mobile lines, hosted phone systems.
Software subscriptions
The quiet killer. Audit the list quarterly.
Marketing: fixed or variable?
If it renews monthly, treat it as fixed
Google Ads at €500/month becomes part of the base, not a bonus expense.
Campaign-driven spend is variable
One-off launches sit outside the fixed line so trends stay clean.
Why recurring obligations deserve their own model
Frequency matters
Yearly software billed once but consumed monthly should be normalized.
End dates matter more
A three-year lease should stop appearing in the forecast the month it ends.
Pause and resume
Seasonal businesses need to model gaps without deleting history.
Business forecasting from a solid base
Baseline = fixed monthly commitments
Everything above the baseline is variable and controllable.
Runway = cash / baseline
The single most important number for a young business.
Scenarios
Model +10% payroll, -20% rent, +€2k software and see what breaks.
Frequently asked questions
Should I include one-time year-end expenses in fixed costs?
Amortize them — divide by 12 and add to the monthly base.
How often should I review the fixed base?
Quarterly, with a deeper review annually. Subscriptions especially drift.
What is a healthy fixed-cost ratio?
As a rough guide, keep fixed costs below 70% of average monthly revenue for resilience.
Conclusion
Modern financial management is about pushing the boring work to software so the interesting work — the decisions only you can make — gets your full attention. Every article on this blog points to that same idea, and Ledger Monkey is the tool built around it.
Ready to see it for yourself?
You do not need a consultant, an accountant or a spreadsheet upgrade to feel the difference. Start your free trial today. Scan five receipts, connect one supplier, and let Ledger Monkey show you where the money actually goes.