Are hidden costs depleting your business bank account? Keeping an eye on what comes in and goes out is vital if you want to keep your business finances in good order. That’s why you need to be aware of hidden costs and what you can do to mitigate them.
Are some of these hidden costs affecting your business? And what can you do to ease them?
Insurance is important for protecting your business in case of a claim against you, or an accident. From employer’s liability to public liability to insuring your premises against damage, insurance is necessary. Unfortunately it’s also sometimes costly.
Shop around to make sure you get the best deals on all of your business insurances. Yes you need to pay insurance, but get the best price you can and make sure you budget for payments.
Whatever your business, you’re going to need supplies. From manufacturing materials to new paper for the printer, all businesses have to buy supplies.
Ordering something here and there when you need it doesn’t seem like much, but the costs can soon add up.
Keep an eye on your business expenses so you have a clearer idea of what you’re spending on supplies, and look for special offers, good prices and loyalty schemes to bring down the cost.
Every business needs to pay taxes at some point. Overlooking the cost of taxes can land you in financial hot water, leaving your business account short at unexpected times.
Get educated on which taxes you need to pay, when, and how much they’ll cost.
Then do as the article “Thought Leader Series: Hidden Costs of Running Your Business” suggests, and set aside the money. That way, come tax time you’ll be covered.
Credit Card Fees
Whether you’re using a credit card to buy things for your business, or setting up credit card payments for your customers, don’t let the fees take you by surprise.
Credit cards can be really useful in your business. Your customers will expect to be able to choose credit card payments, while you might find having a credit card is handy when it comes to keeping your finances flowing.
Just keep an eye on how much it costs and be aware of the fees, remembering to always look for the most cost effective options.
Paying for utilities can soon drain your bank account. Heating, lighting, water, phone and internet costs can quickly add up. Do your budget a favor and shop around for the best deals on every utility you pay for. Comparing prices can save you precious dollars.
You can also keep utility costs down by taking simple steps to make your premises more energy efficient. Even turning the thermostat down a notch or switching off lights when not in use can make a difference.
Are you a member of a trade association? Does your business need a certain type of license? And what about the professionals you need to hire to keep things running smoothly, like your accountant or even an attorney?
Professional fees can soon add up. Professional memberships and services such as accountancy are a valuable investment. Budget for them ahead of time and agree on fees before engaging anyone to work for you, to make sure the costs don’t take you by surprise.
If you want to avoid being stung by hidden costs, take a thorough inventory of all your potential outgoings, plan and set aside money ahead of time, and always look for the best deal.
About the Author: Tristan Anwyn writes on a variety of topics including social media, how to build customer relationships, content marketing and how to keep your business costs in check.