When it comes to allocating funds, the key is to plan ahead. There will always be an opportunity for unexpected expenses to arise and these unforeseen costs can wreck your budget, unless you are prepared. Below are some hidden costs that should be planned for in your budget.
- Shrinkage and Damage
Mismanagement, administrative errors, employee theft, and shoplifting can decrease your inventory and cost you extra money. While the risk of these misfortunes cannot be eliminated entirely,the implementation of prevention practices, like employee training, can reduce the risk.
- Repairs and Replacements
Setting aside a budget for annual maintenance cost is necessary to keep equipment in good running condition and to avoid the higher costs of repairs or purchasing new equipment.
- Employee Turnover
Here are some potential costs to prepare for when employees resign:
- Contesting erroneous unemployment benefit claims
- Recruitment Fee
- Payroll Taxes and Benefits
The wage paid to the worker is only a part of the total cost of employment. Other costs include:
- Employment taxes
- Workers’ compensation
- Fringe benefits
- Legal Fees
According to the NFIB, small businesses are the common victims of lawsuits. Whether fabricated or legitimate, lawsuits can cost small business owners in many ways:
- Settlement costs
- Higher insurance costs
- Lost opportunity
Proper management of cash flow and appropriate allocation of budget will help your business run smoothly. As a thriving business you may need to find new place for your team. YourOffice can help you get a new workspace that is within your budget. YourOffice features a network of world-class business addresses. Each location offers both beautifully appointed short term offices and permanent individual office space. Our offices are move-in ready and equipped with top furnishings and technology that are guaranteed to leave a lasting impression.