Struggling to keep track of your receipts? Or worse, are they shoved in a shoebox only to come out when you have an appointment with your accountant? Tracking common business expenses is vital to the cash flow, solvency and profitability of your small business. Here we share common business expenses and how you can better track them.
Rent is a big operating and overhead expense for many small businesses. It doesn’t matter whether you’re working a few days a week, or if you’re onsite everyday, you won’t want to be in breach of your lease agreement, especially by falling behind in payment.
If you default on your lease, your landlord may even take legal action to recover the outstanding rent. Your lease may even give your landlord the right to enter your premises and lock you out – even without warning.
Staying on top of your rent also helps to foster a positive relationship with your landlord and might even help you when it comes time to negotiate a new lease agreement, or repairs and refurbishments you might need.
Tax, fees and GST
If you run a small business you’ll have to collect and pay a range of taxes. The specifics of which taxes you need to pay will often depend on the type of business you run, but may include:
Fringe benefits tax
Fuel tax credits
Wine equalisation tax
Luxury car tax
Ensure you have a system in place for helping you track and pay those taxes and make sure you:
Keep accurate and timely records
Record all deductions
Get professional advice about the taxes you need to collect and pay
Falling behind on these payments, or worse, simply not collecting the right amount can be disastrous. Besides being asked to pay interest by the Australian Tax Office, they may also decide to take debt recovery action against you – this could possibly lead to bankruptcy, so it’s important to be aware of and stay on top of your tax responsibilities.
Staff wages and leave
Employee wages are a big financial responsibility for any business. A person’s salary, any bonuses and leave entitlements all come under a payroll expense. Not paying staff correctly, or on time, can lead to severe penalties.
It can be easy to lose track of staff’s hours, particularly around busy periods like Christmas. Ensure you have systems in place to regulate and manage your staff’s working hours and leave requests.
How can you stay on top of it all?
Centralise the management and tracking of your key expenses with one tool to help you manage your money and minimise any cash flow problems. Automate these processes and expenses to ensure you never miss a payment. For example, Deputy allows you to easily integrate your payroll system with your timesheets and rosters.
In business, it’s not just about making money. Keeping track of it and spending it are just as important as they can be the keys to growth and profitability.
Are you struggling to stay on top of your outgoings? Find out how Deputy can make your life easier so you can get back to loving your business again. Get in touch with our friendly team today on 1300 DEPUTY.