Using ChatGPT to Learn Business Expenses 101

Business Expenses 101: A No-Fluff Guide for Small Business Owners

If you want to run a profitable business, you need to understand your expenses. Not just where your money is going—but how those costs affect your pricing, cash flow, and long-term plans.

When you categorize expenses the right way, you can:

• Build realistic financial projections

• Set smarter revenue goals

• Plan for profit instead of guessing

In this post, we'll give you a quick breakdown of the 3 main types of business expenses—and why tracking them matters, and the best way to use ChatGPT to learn how to do this for your business

The three main types of business expenses:

1. Fixed Expenses: The Costs That Don’t Budge

These are your steady, predictable costs—like rent, insurance, or software subscriptions.

Why it matters: Fixed expenses give you a baseline for your budget and help you calculate how much revenue you need to break even.

2. Variable Expenses: The Costs That Flex With Your Sales

These rise and fall depending on how much business you’re doing.

Why it matters: These directly affect your profit margins. Tracking them helps you understand how your costs scale with growth.

3. Startup Expenses: The One-and-Done Costs

These are the upfront costs to get your business off the ground.

Why it matters: Startup costs don’t repeat, but they can drain your cash flow early. Planning ahead ensures you don’t run out of runway.

How to Use ChatGPT as Your CFO

Want help brainstorming your expenses? Try this prompt in ChatGPT to get started:

Beginner Prompt:I’m starting a small [type of business, e.g., bakery or online shop]. Can you help me brainstorm all the possible fixed, variable, and startup expenses I need to include in my financial plan? Also, ask me questions to make sure I don’t miss anything important.

Advanced Prompt:I already run a small [type of business]. Can you review my current list of expenses (fixed, variable, and startup) and suggest any categories or costs I might be missing? Also, ask me targeted questions to help uncover hidden costs and optimize my financial planning.

💡 Pro Tip: Copy and paste one of these prompts into ChatGPT right now and let it guide you step by step.

Or check out our YouTube channel for an example of how these ChatGPT prompts can work for your business.

Want to learn how to use ChatGPT more effectively for your business? Join us... we're obsessed!