The Hidden Costs in Business
Licences is one of the hidden cost. Licenses are one of the expenses that the business incurs once. It is advisable that you note down all the expenses in every business. Licenses are 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 necessary that you note down the details of license renewal including the cost and date of renewal. With a licensed business you will be able to connect with other business owners and this may help you in expanding your business.
Another expense is the cost of building space. As your business grows you will have to expand the space so that your things can fit. This one will mean that you are looking for 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. All this should be included in the paperwork for the purpose of knowing how the business is fairing.
We also have recruitment costs. You find that they 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. You should make sure that all these costs are included in your expenses.
We also have the maintenance costs. We have 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. This is something that very few business owners remember to put down.
We also have taxes. This is the responsibility of the revenue authority to make sure that any business owner pay tax for his business. Taxes often costs a lot of money since it is 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.
We also have 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 the business owners are doing the opposite.
There is also money that is paid to the employees when their contract expires. And this money is taken from the business. You find that the business owners don’t see as an expense since it is not part of their monthly pay.
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