Expenses

Expenses are costs that are incurred by your startup in the course of doing its business. Utilities is a major expense for most businesses. This can be for electricity used. If you rent premises in a shopping mall, the cost of heating or air-conditioning may be built into the rent. If  so, then there are savings to your electricity bill. If your business is in premises where you have to pay for heating or cooling facilities, bear in mind that the utilities bill can be substantial.

Another common utility is the internet and mobile phone connection. In addition, an expense can be the fee paid to the provider which hosts the cloud in which your server resides for your online business.

Water bills is another utility incurred by many businesses. For some, like those in the car wash business, it can be substantial. There are, however, many types of businesses which need not use any water at all in the course of doing their business. That is, other than the need for staff to go to the washrooms. Retailers in a shopping mall is one example.

In addition to utilities, another common expense is consumables. Consumables are items which are consumed in the course of doing the business. For a hairdressing salon, consumables can include shampoos and hair dyes. For an online business, it can be the cost of materials used for packaging.

Depending on the laws of the state and/or the country you live in, there may be taxes specifically associated with your business. This can be related to the nature of the business, or the service or products being sold or the premises used. Such taxes are therefore treated as expenses.

Another group of expenses is the sales and admin expenses. Sales expenses are costs involved in the promotion of the product or services. This includes the costs of advertising on the print media like newspapers, or on the internet on a pay-per-click basis, or the use of posters or flyers. Admin expenses are costs which are incurred usually in the office to provide administration support for the business. Admin expenses include the costs of stationery, photocopying, paper, ink and/or toners, files, etc.

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