66 percent of businesses fail in the first ten years because of bad financing. Many businesses forget to claim back on simple things like travel costs, and it end up costing a pretty penny. Don’t be one of them.
But what exactly can you expense? This article will run-down some of the expenses that business owners overlook.
Keep your business strong by cutting costs and expensing everything that follows.
If you’re ‘out on business’, remember to put down hotel stays and meals as expenses. And don’t forget the small expenses that creep in around overnight trips. These might include:
- Congestion charges and tolls
- Parking fees
- Business phone calls
- Meeting room bookings
- Coffee and snacks
These days, your website is a key asset to your business. It’s also another allowable expense. If your website needs a refresh, why not get some expert help to breathe life into it. Website and other advertising costs can all be expensed, including:
A lot of money is spent on business travel. In the US, it’s more than 200 billion a year. It’s important to be clued up on what parts of travel you can expense. And there are a lot of moving parts to automotive expenses (pun intended). So, consider using software services to make the tracking process manageable and pain-free. Travel expenses include:
- Vehicle insurance
- Repairs and servicing
- Taxi/Uber transfers
- Hire charges
- Vehicle license charges
- Breakdown cover
- Train, bus, air taxis
It can be a costly business hiring people. Here’s a guide for doing it well. Once you do start hiring, it’s important to track staff expenses because those costs will quickly add up.
Your employees are your greatest asset. But don’t let them be a greater financial cost than they need to be, and track every staff expense you can. You can expense:
- Clothing (if it’s for work, e.g., a uniform)
- Employee and staff salaries
- Agency fees
- Employer’s national insurance
- Work parties
Stationery and office equipment
Much of what you use in the office can be claimed back. So, get those new chairs, and embrace the world of stationery. Some other office expenses include:
- Phone, mobile, fax and internet bills
- Printer ink and cartridges
- Computer software
Things you can’t claim for
So, we’ve covered the things you can claim for. But it would be remiss not to point out some of the pitfalls business owners fall into. Below is a quick list of the things you can’t expense:
- Payment to political parties
- Gym memberships
- Donations to charity
- Event hospitality
- Entertaining clients, suppliers and customers
- Debts not included in turnover
Make the most of allowable expenses
You’re leaving money on the table if you aren’t taking full-advantage of allowable expenses. This isn’t off-shore, Virgin Islands money moving – this is common-sense financial work. If you aren’t sure, check with your accountant.