Putting up a new business? Well after creating that business plan, and creating a budget for your business. Do not forget these common monthly or occasionally business expenses in your budget and tax planning. Different business, different expenses but there would be a common ground for their expenses.
Every single time you lick a stamp into your business, times when you will write a check for the company’s insurance or buy a box of paper clips, or other office supplies. You are incurring a legitimate business expenses that may be tax-deductible. By keeping close tabs on those business deductions allowed.
Here are the lists of the most common expenses of a business.
TAXES AND BUSINESS EXPENSES
For you to be able to deduct these expenses on your business you must be able to prove that they are legitimate business expenses. You cannot deduct personal expenses for business tax purposes. Be sure to keep an excellent track of your records.
Every business needs a place to operate and provide its services, and there is almost always a cost for the location. Those expenses can be mortgage on a building, rent on leased office or retail spaces, or a part of the business cost of space in your home business.
UTILITIES, PHONE BILLS AND COMPUTERS
Likewise, every business must pay for the cost its utilities such as: electric bills, gas, water, sewer and other services that the city provides like trash pick-up. If you are operating your business at home these cost are pro-rated, depending on the percentage of the home is being used. If you are renting a location some of these costs might be included in your rent. Do not forget that you also pay for your phone bills. Some equipment that you purchase for your business is considered a special category that requires you to keep business and personal costs separate.
OTHER EXPENSES AND MAINTENANCE EXPENSES
Other services which most business incurs are maintenance cost on the facility, equipment and general maintenance. Other businesses also have a caused for lawn mowing, snow removal and other outside costs. You have to keep track of amounts you pay outside services.
Every business needs several types of insurance, for instance you or your business will need property, casualty, liability insurance to cover catastrophic events like fire or vandalism or any other expenses and general negligence. Also you might need specialized insurance like malpractice, or product liability, disability insurance on you and your other key employees.