Let’s discuss our old friend cash flow – we all know this is a crucial element of your business but did you know that one of the most important parts of the cash flow equation is your expenses? Learning how to manage your expenses efficiently is vital for your business to survive. It helps you to save more money, pay the right amount of taxes and improves the overall health of your business…but it can be pretty confusing and at times feel quite overwhelming.
One of the most common questions we get asked is, “can I buy this through my business?” so hopefully our guide below may highlight a few costs that you were unaware you could be claiming for…
- Staff costs: Salaries, wages, bonuses, pensions, commissions and other types of compensation offered to full-time employees, independent contractors, consultants, and freelancers.
- Office costs: Office expenses, such as rent, utilities, phone bills, supplies, and other items used for less than two years can be claimed. A few that often fly under the radar are ink cartridges, postage and software subscriptions.
- Travel costs: Some transportation costs, such as fuel, parking, train, or bus tickets, are tax-deductible.
- Clothing expense: Money spent on clothing that’s required to do business, such as uniforms and safety gear.
- Raw materials: Things you buy to sell on, such as stock or raw materials.
- Training courses: The cost of training your employees or offering courses that are related to your business.
- Marketing and advertising: This includes; website domain registration, hosting fees, photographs, brochures, flyers, and other advertising and marketing expenses.
- Insurance: Financial costs, such as insurance or bank charges.
- Food expense:Official meals with clients or employee lunches during official business travel are deductible at a %.
So, there we go – an expenses masterclass in bullet points! We really hope you have found the information helpful.
As always, we are at hand to discuss your individual business and answer any questions you may have so please do get in touch …