The aim of your company's financial budget is to balance your expenses and income so you always make a profit. To do this, you need to ensure all the correct amounts appear in your budget.
But since you have fixed and variable expenses, it can be hard to know exactly what must appear on your budget. If you account for or prioritise the wrong expenses, it could render your budget useless.
That's why, today we're revealing five expenses that must appear at the top of your company's budget.
Read on to find out what they are...
Don't leave these five expenses off your company's budget
Expense one: Employee expenses
These expenses are any amount you spend on your employees including salaries, UIF, company benefits, travel expenses and so on.
Your salaries and UIF would fall under fixed expenses as they remain unchanged each month.
Expense two: General overhead
These are the costs you incur for the day-to-day running of your business. These include expenses such as rent, water, lights, Internet connection, phone costs and so on.
Your rent is a fixed costs, while everything else will generally vary.
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Expense three: Production costs
If your business is all about making a product, then this becomes extremely important. You need to cover all the costs involved in making your product.
These costs will vary depending on how much you want to produce that month.
Expense four: Sales costs
The point of making products or offering services is to sell them to someone. This means you'll need to account for expenses coming from the sale of your product or service.
Most of these costs will vary.
Expense five: Occasional running costs
You have to account for once-off business expenses when they happen. For example, paying to repair the printer or servicing the company car needs to appear on your budget as they're important to your business.
Ensure you have these five expenses on your budget to make it as accurate and effective as possible.