Published on November 24th, 2014 | by admin
The Hidden Costs That Every Small Business Owner Needs To Remember
Keeping a careful eye on outgoings is vital for any small business. Here at the Post Office Shop we’ve outlined five of the costs incurred by a firm which are sometimes overlooked:
The cost of credit
Whether it’s because they are borrowing money to fund capital expenditure or because they are waiting to get paid by clients, credit is vitally important for many businesses. The fees charged by financial institutions in order to provide credit can be significant – and can also vary considerably from one supplier to another. Therefore taking time to identify the cheapest options is very prudent.
When it comes to overheads that are a costly factor for any small business to consider, paying staff wages will certainly be amongst them. But as well as actually paying staff on a weekly or monthly basis, business owners sometimes overlook the related costs that are incurred by staff whilst going about their daily office duties. As well as the money spent on using the phone, plus heating and lighting, employees will also consume a significant amount of stationery items that will need regular replenishment.
Tax can be taxing
We learn that VAT catches many small business owners out with many making significant miscalculations. It is a common occurrence to treat VAT as a source of income when in reality it belongs to the taxman. Therefore budgeting for what monies need to be passed over to pay tax owed is vital for small business owners.
Small businesses who have oversees interests are at risk of uncertainty caused by fluctuations in currencies. It has been reported that many SMEs don’t fully appreciate the volatile nature of foreign currency markets. Such uncertainty has caused SME’s in this country to lose over £10bn highlighting the extent of the issue.