Some of the Hidden Costs That the Business Incur
Lets us start with licenses. Licenses are always taken once when you are opening your business. But in every business it is important to note all the expenses down are when you can know how to balance the figures. 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 be required to expand the space as your business grows. As a result you will need more land to expand the building. Not only expansion but it will also come with and increases in rent, utility fee and other local costs. Apart from that expansion will also mean that you employ more manpower. You find that most of the business owners do assume this costs. You should make sure that all this should be included in the paperwork for the purpose of knowing how the business is fairing.
Another thing is recruitment cost. This costs are always very expensive as it involves things like an 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.
In addition we have maintenance cost. Things that can require maintenance in your office are ranging from furniture, computer servicing and software update to other needs of your employees and your business. Almost none of the business owners remember to list this under maintenance.
We also have taxes. This is the responsibility of the revenue authority to make sure that any business owner pay tax for his business. This is something that is paid on monthly basis and it often costs a lot of money. You will pay money depending on the size of your business. It is, therefore, necessary to include it under expenses since the money you are taking from your business.
Another expense is insurance cover. Most businesses have insurance covers that they pay on monthly basis. This money should be included under expenses since it is taken from the business. But it quite unfortunate that business owners don’t see it as part of the business.
Another expense is the money paid to the employees when their contract expires. You should know that it is part of the business. For instance, you find that business owners don’t see as an expense since it is not part of their monthly pay.