Overlooked Business Expenses You Need to Budget For

 From the very moment you decide to start a business, you must keep an accurate account of your finances. Despite having a limited source of capital to work with, how you obtain and spend your money down to the penny must be accounted for. Proper financial management not only helps you to make the most of your company’s capital, but it is also required by law as state and federal entities will review your records on a periodic basis for tax purposes.

As you might imagine, forgetting to add certain expenses to your budget can throw you off. It results in you struggling to find financial resources to cover the costs, going without the business need, and can mean you to miss out on a lot of tax break opportunities. Though there’s a laundry list of things you’ll need to cover, here you’ll find some of the most commonly overlooked:

Marketing

No business can survive without marketing. It is essentially the only method for getting your brand recognized by your target audience. Though you may have included the initial costs of buying a website, setting up social media, and developing a campaign, marketing is an ongoing expense. You’ll need to continually invest in it in order to stay relevant in today’s quickly growing markets

Utilities

Many entrepreneurs factor in the monthly cost of leasing a commercial property but forget to consider the costs to keep it operational. You’ll need running water, electricity, and gas to create a healthy, safe, and decent working environment for your staff or retail location for your customers. Therefore, you should add your energy and water bills to the budget.

Pest Control

Maintaining a commercial property generally falls on the shoulders of the lessee. For instance, if there are pests on the premises, you’d likely be required to get rid of them with your own resources. You’ll need to get a contract with a company that does pest control in Denver or the city your property is in. This will keep the pests away and prevent you from getting fined for health violations (and a ruined reputation).

Insurance

There are several types of insurance policies you’ll need as a fully functioning business and they don’t come for free. First, if you own or lease a commercial property, you’ll need to have property insurance to protect you in the event of a robbery, natural disaster, or personal injury. However, you’ll also need liability insurance to protect your brand from lawsuits from disgruntled employees and/or customers. Getting caught without these insurance policies could leave you on the hook for thousands of dollars in damage. It could essentially be the end of your business.

Equipment Failure

Machines break down and if you haven’t added this expense to your budget you could have to put the business on hold until you’re able to replace damaged equipment. From fax machines and copiers to warehouse machinery and shipping equipment, there are a lot of things that would need to be replaced at a moment’s notice.

Turnovers

Though you’d like to think of yourself as a great employer who has hired the perfect team, not all hires go as planned. The cost of losing an employee and having to rehire is huge and needs to be factored into your budget. If one of your most-needed staff members decides to walk one day, and you don’t have the money to get someone in their place, you risk overloading the rest of your staff and weakening the quality of your performance. You not only need to include the cost of advertising for the job but the interviewing and training process as well.

When you’re the boss of your own organization you have huge shoes to fill. If you’re going to make your brand a success, you must learn how to take your revenue and make the most of it. Part of that means having an accurate account of all your expenses and keeping up to date record of your finances. In doing so you put your company in a position to win.