The Hidden Costs in Business
Licences is one of the hidden cost. You will only take a business license once. It is advisable that you note down all the expenses in every business. Apart from that they always renewed after a given period of time maybe one year of which the business owners always don’t count it under expenses. It is a necessity that you note down the details of license renewal including the cost and date of renewal. This will help you in connecting with other business owners and this may help you in expanding your business.
Another expense is the cost of building space. You will need more space when your business grows. This one will mean that you are looking for more land to expand the building. Apart from expansion, the building will also come with an increase in rent, utilities, and other local costs. After expanding your business you will also need to employ more manpower. Most of the business owners does not take this charges as something. Therefore, you should make sure that all this should be included in the paperwork for the purpose of knowing how the business is fairing.
Apart from that we also have recruitment cost. Recruitment costs are always very expensive as it involves things like advertisement, potential outsourcing to an agency, and the cost of the time you spend interviewing the candidates, going through their credentials and offering training. All this should be put under your expenses.
Another expense is maintenance costs. There a lot of things that require maintenance in your place of work like furniture, computer servicing and software update and other needs of your employees and your business. None of the business owners always think of putting this maintenance costs down.
We also have taxes. It is the responsibility of the revenue authority to make sure that any business owner pay tax for his business. You note it down as it is always paid on a monthly basis. You will pay money depending on the size of your business. So it is important that you include it under expenses since the money you are taking from your business.
Another expense is insurance cover. You find that most of the businesses have insurance covers that they pay on monthly basis. Therefore, you should include it under expense since it is taken from the business. Though that is not what business owners do.
Another expense is the money paid to the employees when their contract expires. And this money is taken from the business. For instance, you find that business owners don’t see as an expense since it is not part of their monthly pay.
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