Mobile Charges

This Overheads code records the cost of mobile charges incurred in running the business. As an expense account, it normally carries a debit balance: debit entries increase the balance (recording new costs) and credit entries decrease it (for example, correcting an error or a refund received).

Real-world examples

Field-based trades (e.g. plumbing or HVAC engineers)

Every engineer carries a company-contract mobile for job scheduling and customer calls, all under one fleet-wide contract. A £1,800 invoice (£1,500 net of VAT) covering 15 handsets is a debit of £1,500 to 7553 (Mobile Charges), a debit of £300 to 2201 (Purchase Tax Control Account), and a credit of £1,800 to 2100 (Creditors Control Account).

Office-based professional services

Most contact runs through desk-based VoIP and email, so few staff need a company mobile at all — usually just partners and senior staff. A much smaller £240 invoice (£200 net) is a debit of £200 to 7553, a debit of £40 to 2201, and a credit of £240 to 2100.

Business operating a BYOD policy

Rather than issue company handsets, staff use personal phones and the business reimburses a fixed monthly allowance toward the bill. Because the contract and VAT invoice sit with the employee, not the company, no VAT is reclaimed on this — it's a flat cash reimbursement: a debit of £25 to 7553 and a credit of £25 to bank per employee per month, with nothing posted to 2201.

Commonly confused with

Because code 7552 (Computers & Software) sits right next to this one in Overheads, it's a common mis-posting target. Code 7553 is specifically for mobile charges, while 7552 covers computers & software — similar in nature, but keeping them separate is what makes the overheads section of your management accounts meaningful rather than a single lumped total.

What a mis-posting here costs you

An error posting to Mobile Charges won't change total overhead spend, but it will distort the overheads breakdown that's usually reviewed line by line each month to spot cost creep.

Other codes in Overheads