Some of the Hidden Costs That the Business Incur
Licences is one of the hidden cost. 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. It is necessary that you note down the details of license renewal including the cost and date of renewal. The license will allow you 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. As a result you will need 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. You find that most of the business owners do assume this costs. Therefore, you should make sure that all this should be included in the paperwork for the purpose of knowing how the business is fairing.
We also have recruitment costs. 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. 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. This is something that very few business owners remember to put down.
Tax is also hidden cost. With the revenue authority they make sure that all the business owners pay tax. 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.
Another expense is insurance cover. Most businesses have insurance covers that they pay on monthly basis. Therefore, you should include it under expense since it is taken from the business. But the business owners are doing the opposite.
In some cases you find that employees are being paid when they are leaving job. You should know that it is part of the business. As a result most business owners don’t see as an expense since it is not part of their monthly pay.