Business Finance: Six Things That Businesses Often Forget To Budget For

Tuesday, September 22, 2015, 6:00 AM | Leave Comment

Creating a comprehensive budget is one of the first projects that a business owner should tackle. If you are preparing to open your doors or looking to expand your business, then take a look at these six things that many business owners fail to budget for.

Six Things That Businesses Often Forget To Budget For

  1. Credit Card Fees

    The goal of every business is to make the purchasing process as easy as possible for the customer, and this means accepting all major credit cards.

    An unfortunate byproduct of this is the fee that comes from every swipe.

    Business owners should expect to pay around three percent of all credit card charges in fees.

  2. Health Insurance

    Health insurance is most expensive for businesses with fewer than 10 employees.

    Instead of budgeting for new employees purely based off of their salary, it is important to consider all of the additional costs including health insurance and other benefits.

  3. Utilities

    Just like in a household, the utilities for a business can quickly spiral out of control.

    Business owners should consider having an energy audit carried out once a year to see where they can make improvements.

    Many utility companies also offer “equal pay” programs with static monthly payments instead of fluctuating payments.

  4. Licensing and Permits

    Every single industry is regulated by federal, state, and local ordinances.

    Failing to have the correct licenses and permits is not only a red flag for your customers, but it could result in huge fines.

    These issues become even more complex when you do business across county or state lines.

    Budgeting for these expenses early on and keeping all permits up-to-date will save you from future headaches.

  5. Office Supplies

    Running out of office supplies in the middle of a busy day can be disastrous, especially when these supplies are not part of one’s budget.

    Office supplies may seem like a relatively minor expense, but cleaning products, paper, ink, pens, stationary, furniture, and electronics will quickly begin to add up when not accounted for.

    You can buy all of these products at one place like to save money and time.

  6. Liability Insurance

    Commercial insurance may seem like just one more unnecessary expense, but those without a liability policy are just one accident away from a bankrupted company.

    Before opening your doors or taking on your first client, it is vital that your company’s assets and employees are insured by a comprehensive policy including product or professional liability coverage.

Accounting for these commonly overlooked expenses will ensure that your company’s finances stay in order as you continue to grow and expand.

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