If you’ve decided this year will be the year that you'll start your own business, or even if you’re already a savvy startup owner, you'll likely be aware that clever budgeting can make or break a new business.
But even if you think you’ve calculated everything down to the last penny, we can guarantee that you’ll have missed business expenses along the way.
To help you plan better, we’ve compiled a list of the most commonly overlooked expenses
It might sound obvious, but if you’re used to your taxes disappearing before your paycheck even gets to you, you’ll need to be prepared. For small business owners and the newly self-employed, it can be easy to get carried away once payments start rolling in – but don’t forget to put some aside to pay your taxes at the end of the year, and don't forget HRMC is 'Making Tax Digital' in April 2019.
Another surprising one, but it’s amazing how many new business owners forget that they will need to pay themselves a living wage. Often, it’s assumed that the company’s profit will cover personal expenses – but this isn’t always the case, especially when you’re getting started. To avoid slipping into a financial slump before you’ve even begun, make sure that you take this into account.
Another factor that many forget to consider is the cost of insurance. While big companies expect this expense, many smaller startups get caught off-guard by things like public liability insurance, business interruption insurance and the like. Even if you’re self-employed, it’s sensible to get cover for when you’re ill or unable to work – and all of these things add up over the year.
Does your business have a physical space, such as a warehouse or office? If so, have you factored in the cost of keeping the building maintained? Because most new businesses rent their premises, this cost often gets overlooked. But while you probably won’t need to fork out for an electrician or a plumber, you’ll still need to consider the time and cost of keeping everything clean and tidy every day.
Need to travel to another city to meet a client? Or perhaps your photocopier breaks and you need a new one urgently? While it might seem counter-intuitive to suggest that you prepare for the unexpected, it’s worth keeping a pot of money to one side for those expenses that no one can predict. That way, you’ll always have a buffer and avoid sliding into a cycle of debt.
On top of running and growing your new business, expenses can be a big drain on your time, especially if you leave it all until the end of the month. But you're not alone, as many new business owners are understandably worried about losing track of their business expenses and cash flow. want to know how an Expend card is better than a standard company card, read our comparison blog.
Thankfully our clever Expenses solution was built to help you avoid the pitfalls. Now with the choice of our new Expend Flex card or our classic Business PrePaid card, it lets you keep all of your transactions in one handy place and works with leading accounting software.