Accounting glossary
What is overhead?
The expenses that exist whether or not you sell anything today: rent, salaries, insurance. Businesses die two ways — bad margins or overhead outrunning gross profit. The P&L shows both; the budget keeps the second one honest.
Example
A shop with $8,000 of monthly overhead and a 40% gross margin needs $20,000 of sales just to break even before profit begins.
That arithmetic is why overhead is worth knowing to the dollar: it sets the number the month has to clear.
In SeroBooks
Budget vs Actual puts a plan beside every overhead account. Budget vs actual →