The Essentials of Services – The Basics

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 important in the business that you note down all the expenses no matter how minor they are. 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 a necessity 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.

We also have the cost of building space. You will be required to expand the space as your business grows. This will make you require more land for expanding your business. Apart from expansion, the building will also come with an increase in rent, utilities, and other local costs. After expanding your business you will also need to employ more manpower. You find that most of the business owners do assume this costs. 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. This costs are always very expensive as it involves things like an 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.

We also have the 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. Almost none of the business owners remember to list this under maintenance.

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. You note it down as it is always paid on a monthly basis. This is always charged depending on the size of the business. So it is important that you include it under expenses since the money you are taking from your business.

Apart from that there is also insurance cover. For instance, most business owners have insurance covers that they pay for every month. This money is taken from the business of which must be included in the expenses. Though that is not what business owners do.

Another expense is the money paid to the employees when their contract expires. 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.