A recent article, Budgeting for Your Business by Stephen Sheinbaum reminds small business owners that there are major expenses to pay before the revenue can hit the bottom line–your net profit. So, even if your sales are strong, you need to consider the following recurring expenses for your business budgeting.
Rent
It’s one of the biggest and most important expenses of your business. However, a growing number of small businesses prefer to operate in shared offices or coworking spaces to cut expenses. So, if you’re located in Denver and looking for a more decent and presentable office space, you can consider Denver Virtual Office Space or Denver Coworking Office Space to start your business.
Time
Precisely, your time is money. You can delegate administrative tasks to a virtual office so you can focus on the core of your business and to attain work life balance.
Equipment
Some kind of equipment is necessary for every business, but if you can’t afford to purchase your own equipment then you can lease. You can still claim the tax deduction for leased equipment.
Employee Compensation
You need to have the appropriate budget for salaries and compensation like health benefits and training programs. Failing to invest properly in your workforce can lead to high turnover.
Utility expenses
For most businesses, gas, electricity, heat and hot water are expenses separate from rent. These expenses can increase significantly, so you should be vigilant. You can reduce this expense by going greener or consult a specialist to see where you may be wasting energy.
Automobile expenses
Maintaining a business vehicle can be a major expenditure. However, repairs and maintenance, gas, oil changes and vehicle registration are deductible expenses from taxes, so you need to maintain good records to obtain such deductions.
Conclusion
These major expenses should be carefully managed to ensure that your business will stay afloat. As a small business owner, YourOffice is looking forward to help you with some aspects of your business expenditures. YourOffice- Denver/Downtown offers you a wide choice of office and workspace solutions: single or multiple offices, team/conferencing/meeting spaces and virtual office packages. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.
How do you manage your business expenses? We’d love to see your suggestions below. You can also visit us on Facebook and Twitter.
