Operating expenses are your overhead: the recurring costs that are not tied to a single order, like software, salaries, rent, or a monthly marketing retainer. Shopshot calculates them daily and allocates them across orders, so your Net Profit reflects the true cost of running the business, not just the cost of each sale.

[Screenshot placeholder] The Operating expenses table with a "June 2026 Marketing" row showing Type, Frequency, Category, Amount, and Start/End dates

Recurring costs are automatically converted to daily rates. A $300 monthly cost becomes a daily amount spread across the days it covers, then shared across that period's orders. This is why a big fixed cost does not distort the day it was paid, and why an expense only affects the days it actually covers.

Use + Add Operating Expense and set:

You can Import expenses in bulk or Export CSV, and edit or delete any row.

Operating Expenses is its own expandable group on the Profit & Loss statement, sitting below Contribution Margin. Subtracting it gives Net Profit.

Why spread a monthly cost across days? So a cost lands on the orders it genuinely supports, rather than dumping the whole amount on the day it was paid.

How do I handle a one-off cost? Set a start and end date covering the period it applies to, and Shopshot allocates it across those days.

Where do my Shopify app subscriptions go? Here, as operating expenses. See Tracking Shopify app costs.

Software is the overhead most stores forget. Add your app subscriptions so Net Profit is honest. → Tracking Shopify app costs