6 Forgotten Business Expenses

Starting a business is an expensive process and it often needs to be carried out on a very tight budget. Businesses can take months or even years to become profitable so it is important that you know what all of the costs will be before you make the leap and set about starting your own business. Expenses such as rent and business IT support are always important and thankfully they are usually remembered during the setup of a business. Elements such as an update to Windows 8 so that you can maintain a professional appearance, or the expense of business insurance, are those that we often forget, and they are sometimes the most important of all. This article will consider the top 6 frustrating expenses that are often forgotten when setting up a business.

  • Hiring an Accountant

Whilst you may be proud of your ability to successfully complete all of your family accounts, it is an entirely different experience when you are dealing with taxes for a small business. Even in a small business there are rules and regulations which will make even the most committed of people lose hope. An accountant is an unavoidable cost that will help you to succeed in your dreams so be sure to hire a knowledgeable accountant to help you to keep your business legitimate.

  • Business Filing Costs

When running a business there are many requirements to meet. You may need to apply for a reseller’s license or have your premises checked for safety. All of these requirements will come at a cost so be certain to find out what requirements you will have to meet before you set out.

  • Legal Advice

Legal advice is expensive but it is also essential. You will need someone to look over your contracts. Neglecting to get legal advice could be a painful decision should anything go wrong at a later stage.

  • Insurance

It may not seem necessary but every business, whether you are a copywriter or a lawyers firm, needs business insurance in case the worst happens. Liability insurance is an absolute must and if you employ staff you will need to be covered for compensation purposes as well.

  • Medicare

When you are employed, your employer is responsible for paying your medicare contributions for you. But as a self-employed business owner you will actually have to pay these costs yourself once you are drawing a wage from the business. Failure to make these payments could result in heavy fines at a later stage.

  • Life and Disability Insurance

When you work for yourself one of the most important things you need to do is take insurance for the event of injury or illness. If you are running your business alone and an illness befalls you then there is no company to back you up and maintain your wage whilst you recover. Be sure to get insurance so that if anything does happen you will not be left without financial support and a failing business in your absence.

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