If you are starting a new business, you need to have a solid budget. Without doing so you can overspend and not have enough money to pay your expenses when the time comes. However, how do you do that if you don’t know exactly what your expenses will be or you've never had a budget before? These are the most common business expenses that businesses of all sizes incur every month.
Businesses need quite a few office supplies on a regular basis. Some of these you will need to replenish every single month. These items include things like pens, printer paper, and legal pads. However, many businesses choose to utilize a company like Coastal Business Supplies to get their office supplies. These types of companies can deliver these supplies right to your office so that you don’t have to run out to the store every single month.
Mortgage Or Rent
You will need to have a place for your business to operate. This will most likely require you to pay your mortgage or rent to a landlord. If you own the building you are working in and have a mortgage, don’t forget to include things like property taxes and insurance in your budget. For those who rent, they need to purchase renter’s insurance as well.
No matter if you rent or own the building that your office is located in, you will have to pay for utilities. These include things like electric, water and internet services. You may also need to lease some items like a point of sale system or computers.
Businesses will incur maintenance costs every month. For renters, these can include things like paying for cleaning services. Those that are actually owners may need to pay for things like replacing a broken faucet in the restroom or repairing a busted door lock. Because many of these expenses fluctuate, a lot of businesses have issues trying to figure out exactly how much they should budget for these types of items.
One of the biggest expenses that businesses have is their monthly payroll. They have to pay their employees to work and may even need to pay for a portion of their health insurance. For the most part, wages and salaries are predictable so businesses can usually figure out how much they will spend on them each month.
While you can try to do everything yourself, there may come a time to where you want to outsource certain things. For instance, many businesses will hire CPAs and bookkeepers to take care of their businesses needs. Even though you might not pay for these individuals every month, you should still set aside money consistently to pay for professional services so that you aren’t having to come up with a lump sum of money all at once.
There’s a good chance that your business will want to do some sort of advertising. While there are some ways to advertise for free, you will still probably have to incur some sort of monthly costs. This can include things like radio ads, Facebook marketing, or promotional items to hand out at events. Advertising costs are necessary as they can help you grow your business and make more money overall.
Even the best budgets tend to have some sort of miscellaneous expenses. These can include things like fuel for driving to and from a vendor or expenses for having a business meeting at a restaurant. No matter what these miscellaneous expenses are, it’s important to have some money set aside so that you can pay them when the time comes.
In conclusion, your business will have a lot of expenses every month. In order to have enough money to pay them all, you need to have an adequate budget. The items mentioned above are some of the most common expenses that businesses have to pay every single month. No matter how long you have been in business, it’s a good idea to review your bank statements often. This will help you determine which categories you need for your monthly budget and the amount of money that you should set aside for them.