Some of the Hidden Costs That the Business Incur
Lets us start with licenses. Licenses are one of the expenses that the business incurs once. But in every business it is important to note all the expenses down are when you can know how to balance the figures. You find that 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. Make sure 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 need more space when 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. After expanding your business you will also need to employ more manpower. 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.
Another thing is 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. 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. This is something that very few business owners remember to put down.
Tax is also hidden cost. It 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. This is always charged depending on the size of the business. It is, therefore, necessary to include it under expenses since the money you are taking from your business.
We also have insurance cover. You find that most of the 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. 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. 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.