Some of the Hidden Costs That the Business Incur
Lets us start with licenses. You will only take a business license once. 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 necessary 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. 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. You will also need to employ more manpower after expanding your business. 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. Do not forget to include them under the expenses.
In addition we have maintenance cost. 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. Almost none of the business owners remember to list this under maintenance.
Another hidden cost is the tax. It 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 is taken from the business of which must be included in the expenses. Though that is not what business owners do.
There is also money that is 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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