Unterstanding the principles of how accounting function in economy businesses track expenses mostly depends on knowing the structure of costs and the patterns of the market activities. Business expenses are present during the complete process of business activities, and the future of business largely depends on them. As business expenses records presupposes managing large quantity of data, it’s necessary that accounting function in business track expenses as they occur on daily basis. As the business expenses are indicator of financial and non-financial transactions in business, activity of tracking costs presupposes tracking transactions in that particular context. The goal of this academic work was to represent accounting of expenses and their structure on practical example on real business expenses of Kingtrade Makarska d.o.o. firm which has very interesting structure of business expenses. The material costs of Kingtrade Makarska d.o.o. takes stake of 87% in total business expences, while staff costs takes about 9% of stake in total expences. Remaining costs refers up to 2% per category. Amortization expenses in 2015. compared with 2014. changed for just 18.000 kn upward, while other costs in the same period changed for 86.721 kn upward in 2015. This increase is caused by expences that refer to staff (in average 64,16% of stake in total costs) but it's interesting that Makarska d.o.o. has no education investment nor in 2014 nor in 2015 buiness year. The main results of this study showed that accounting analysis of costs according to natural classification can provide a lot of information regarding business management and insight in cost structure that is present in every stage of business.