Some of the Hidden Costs That the Business Incur
Licences is one of the hidden cost. Licenses are always taken once when you are opening your business. 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. Make sure that you note down the details of license renewal including the cost and date of renewal . This will help you in connecting 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. 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. You should make sure that all these costs are included in your expenses.
Another expense is maintenance costs. We have 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. 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. You will pay money depending on the size of your business. Make sure that you include it under expenses since the money you are taking from your business.
Another expense is insurance cover. Most businesses have insurance covers that they pay on monthly basis. This money should be included under expenses since it is taken from the business. Though that is not what business owners do.
In some cases you find that employees are being paid when they are leaving job. 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.