Hidden Costs Business Owners Should Consider.
Lets us start with licenses. 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 hidden cost is 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. Apart from that expansion will also mean that you employ more manpower. Most of the business owners does not take this charges as something. 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. You should make sure that all these costs are included in your expenses.
In addition we have maintenance cost. 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. Almost none of the business owners remember to list this under maintenance.
Another hidden cost is the tax. With the revenue authority they make sure that all the business owners pay tax. Taxes often costs a lot of money since it is paid on a monthly basis. This is always charged depending on the size of the business. Make sure that you include it under expenses since the money you are taking from your business.
We also have insurance cover. For instance, most business owners have insurance covers that they pay for every month. This money should be included under expenses since it is taken from the business. But the business owners are doing the opposite.
In some cases you find that employees are being paid when they are leaving job. You should know that it is part of 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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