Every good business has a budget in place. There are a number of common business expenses you will want to include in your budget. It will ensure that you have thought of everything so that you can stay financially afloat from month-to-month.
The rent that you pay should be included in your budget. If there are additional expenses that are associated with your property, such as a mailbox, it should also be included. This way, you can account for the cost of the property so that you’re able to operate your business each month.
Property insurance should also be included as a line item in your budget.
All of the utilities that you pay should be included in your budget. You can receive gas and electric quotes from Energy Seek to help you with your budget. You will also want to include any other utilities that you need to keep your business up and running. This might include telephone service, internet, and even cable.
It’s better to estimate high so that you can compensate for months where you may pay a little more. The winter months may involve you spending more on gas and electricity because of needing to run the heat. Typically, telephone, Internet, and cable bills will be the same from month-to-month. Bundled packages may also help you to save money.
Office supplies should be included in your budget. You may go through a large number of pens and pencils or do a lot of printing. Consider how much you need on a monthly basis to ensure that you have considered everything. You will want to add in the cost of copy paper, toner cartridges, and any other office supplies that you may need.
Many businesses forget to add this line item and then end up spending more than what their budget allows simply because this was omitted.
You will likely have a number of disposables each month. These are items to get that get thrown away as soon as they are used. Depending on the type of your business, you may have disposables in the form of sponges, toilet paper and tissues, cleaning products, and even trash bags.
If you buy disposables in bulk, you may find that you don’t need to spend the money each month. As such, you may need to alternate the expenses so that they are listed as every other month in your budget. They may even be quarterly expenses if you don’t need a large number of disposables on a regular basis.
You will also want to include marketing in your budget. The only way that people will know about your business is if you take the time to market on a regular basis. Marketing expenses will vary based on your industry and how much competition you have. You may want to allocate expenses for search engine optimization, pay per click ads, social media ads, and much more. As you make more money, you may also want to allocate more money to marketing so that you can increase your reach and strengthen your position within the community.
It’s always important to establish a realistic budget for your business. Understanding some of the most common line items will ensure that you don’t forget anything important. You can then make sure that all departments are aware of the budget so that you can stay on target from month-to-month.