Are you creating your budget for your startup business? Or you have already established your business? Well, every business knows that everyday operation makes an expenditure. This is why you must not forget the different monthly expenses that you should include in your budget.
Different businesses have its own different expenses. The reason why you should know the common monthly expenses that most businesses pay.
Capital expenditures are the expense you acquire for purchasing assets of your business. These include the building, machinery, equipment, furniture, and fixture. Your business assets are expected for long-term use. You can recover this through depreciation or price depletion.
Cost of Goods Sold
Since you are into your business, you must consider the cost of goods you sell. Cost of goods sold is costs related to producing the company’s product. This includes raw materials, packaging, and shipping and storage expenses.
Business and Tax expenses
To keep your business on track and going, you should consider paying the variety of taxes every year. You have to pay for the business tax in the city where your business located at. Also, withholding tax for you and your employee’s Social Security System and other healthcare deductions must be paid regularly.
Salary expense is the largest expenditure to the business. This includes the employee salaries, pensions, contributions, and commission-based work. Also, other benefits such as meal, transportation, and travel allowance are included here.
Every business operation day consumes utility expenses. This includes electricity, gas, water, telephone and internet services.
This is also one of the largest expenses that you must consider for your business budget. It is the rental fee for the office space or storefront of your business. This is commonly paid on a monthly basis.
Type of insurance depends on what kind the business is. Commonly insurance that you need is property and casualty insurance when a catastrophic event might occur. Also, specialized insurances like product liability and disability insurance for you and your employee is a good idea for your business.
Other expenses are the reimbursement of your employees when they need perform tasks outside the premises. It also includes marketing expenses, office supplies expenses, IT services and other fixed costs.
Miscellaneous fees are administrative fees that are separated to the business list of expenses. These include the training and workshop of the employee, professional fees for lawyers, accountants, and payroll companies. Also, it covers the expenses for repairs of equipment, vehicle, and your space.