If you own a business, your expenses do not end at your initial investment. Running a business, no matter its size can be costly. Indeed, the business cost can be overwhelming as you start out. Business expenses include overhead expenses, marketing, manufacturing, salary, and more. Sure, every business has unique expenses, but businesses from most industries share the same expenses.
Keeping track of these expenses is important to know where the money is going and what’s coming in. This is where you need the services of a CPA in Bluffton, SC. A CPA helps you make accurate record-keeping, so you can always have a clear picture of your company’s financial situation. Below are major business expenses you should anticipate and prepare for:
Rent and Utilities
If you set up your business in a brick-and-mortar location, you may have to take into account the rent and utilities as well as the monthly cost. If you own a home-based business, your business expense can be a portion of your home expenses, such as mortgage interest, home insurance, and property taxes.
Employee Payroll and Benefits
Aside from the general payroll system your organization must follow to pay your workers, you also have to offer them some kinds of benefits. Employee salaries and benefits are deductible in the tax ear they are made. However, this can depend on your accounting method. Your accountant can walk you through this matter.
These include supplies such as paper and pens, as well as those incurred in equipment repair and maintenance. It is important to have records and receipts of your office expenses for tax purposes.
Advertising and Promotion Expenses
These expenses include advertising expenses such as digital and print ads and social media ads. Also, they include expenses incurred to design and print promotional materials like flyers and brochures.
Professional Fees and Memberships
These expenses include fees you pay to an accountant, attorney, or another professional. In addition, you may be able to claim membership fees you pay to professional organizations as legitimate business expenses.
These expenses are incurred when you buy assets used in your business. They include expenses incurred for buying property, vehicles, or equipment necessary for your business operation.
As a business owner, you also spend money on insurance to protect yourself and your company from future liabilities. Also, you buy insurance to protect your property and employees. Business insurance includes property insurance health insurance, and liability insurance.