Direct or indirect expenses, fixed or variable expenses, operating or non-operating expenses, discretionary or mandatory expenses… Surely you know the general classification but… Do you know, specifically, what types of business expenses are most essential for your company?
Types of Essential Business Expenses You Should Know About
Identify the general expenses of a company It is key to be able to deduct 100% of your possibilities each fiscal quarter and keep absolute control of everything that is going to come out of the box. If you are far from approaching an organization with exemplary management of its accounts, at least start by knowing those expenses that you can hardly get rid of.
1. Workspace rental
Is your company in a more initial phase, starting as a coworking, or is it already located in its own rented offices in a building in the center of the city? In any case, the workspace related expenses are others you should consider.
2. Cost of supplies
Whether your company works entirely remotely or in an office, the supplies such as water, electricity or gas they are also a type of expense that you will have to satisfy.
3. Stationery and office expenses
Pens, notebooks, folders, staplers, disinfectant wipes, garbage bags and all kinds of expenses of material used for work in office and the maintenance of the space… also suppose a business outlay.
4. Furniture and machinery
We are talking about desks, chairs and the set of furniture present in the office, as well as assets such as desktop computers, laptops, printers, scanners and other machines.
5. Marketing and advertising expenses
He cost of advertising actionsderived from any advertisement, in the online or physical channel, is almost a basic for any company that wants to consolidate its brand image.
6. Expenses for independent professional services
Don’t forget the professional services paid for by your company: tax or commercial advisors, consultants of any kind, external cleaning companies…
7. General administration and management expenses
A good percentage of the general expenses in a company are those to organize and control the companysuch as the salaries of team members dedicated to this purpose.
8. Web design and software expenses
They refer to the costs of the web domain, hosting, server maintenance… But they also include recurring payments to online tools.
9. Representation expenses
when searching new customers and suppliers or improve their relations with existing ones, what is known as representation expenses appear on the scene.
10. Leisure, entertainment and wellness expenses
Tickets to sporting events, congresses, cultural events, shows…. If they are for the company’s own personnel, they are included in this category.
In short, knowing the types of expenses in a company and keeping good control of them is decisive for ensure optimum economic development. More taking into account that almost 9 out of 10 Spanish companies are not a multinational nor do they have an expert financial department, Carrying out a good management of the business expenses that a startup or SME faces is vitalespecially in the first months -even years- of the life of the business.
2023-04-29 19:54:35
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