Learning The Secrets About Businesses

Some of the Hidden Costs That the Business Incur

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. 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. You will be required to expand the space as your business grows. 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. These are some of the costs that the business owners assume. 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. 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. All this should be put under your expenses.

Another expense is maintenance costs. 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. None of the business owners always think of putting this maintenance costs down.

Tax is also hidden cost. 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. The amount of tax you pay will depend 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. 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 it quite unfortunate that business owners don’t see it as part of the business.

There is also money that is paid to the employees when their contract expires. This goodbye fee is part of the business money. 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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