Common Expenses That You Can't Forget as a New Business

Common Expenses That You Can’t Forget as a New Business

When you’re starting a new business, you know that you’re going to spend money on things like branding, inventory, and staff. But, there are plenty of other expenses that you’ve likely overlooked in your excitement. Keep reading for a few of these.

Digital Marketing

The scope of digital marketing is expansive, but, essentially, it’s how you market yourself on the web. From content writing to social media posting, your online persona is a huge part of your business. Spend some time researching different digital marketing providers to get a better idea of what you can expect to spend.

Web Domain And Design

Part of digital marketing, but deserving of its own section, is web design and domain purchase. Your website should not be trusted to an amateur, and, unless you have the time to learn and fumble through mistakes, it’s best not to do it yourself. As for your domain, this is essentially where you park your website. It is not always easy to get a domain name that perfectly matches your business. For this reason, it makes sense to also budget for a DBA.

A DBA, which is the abbreviation for, “doing business as,” is an alias you can use to market your business. You can also use your DBA to start new branches and showcase different types of products under a new brand. It does cost money, and DBA requirements are often difficult to understand. But, doing a little research will help you maintain your trademark and, perhaps just as importantly, will make it easier for you to find the domain that fits your business.

Taxes

When you’re self-employed, you pay more taxes than when you receive a paycheck. According to TaxAct, self-employed individuals pay 15.3% in Social Security and Medicare taxes alone. To math this out: if you make $50,000 in one year, $7650 of that goes straight toward taxes. Almost all businesses use accounting software. There are several functional options on the market, but be sure that you choose one that interfaces with transaction details API. This will make it much easier for you to keep track of necessary information throughout the year and at tax time.

New Hardware And Software

If you’re launching a brick-and-mortar, you’ve likely already invested in new computers, printers, and other technology. However, when you plan to own a business that you run from home, you may think you can get by on your personal computer. Chances are, however, you can’t. Make a point to budget for everything from a new laptop, which can cost anywhere from a few hundred dollars to $2,000 or more, to the software you’ll need to run your business. This might include a program for accounting, graphic design, or customer relationship management.

WAH Permits

Something else to consider if you’re working from home is that you may need to apply for an occupation permit. The expenses for this vary drastically depending on where you live. If your business is run online virtually and is considered, “no-impact,” then you may not need a special permit.

Better Internet

The more load you put on your internet at home, the better the connection you will need. Again, if you plan to work out of your house, you’ll want to budget for additional internet services. Fiber is a good option, as it is the broadband connection that can reach some of the highest speeds. Check with your local providers to find out what speeds and rates are available to you.

While this is not a full list of every possible expense you may have forgotten to account for, it’s a great start. Remember the old adage: “It takes money to make money.” This remains as true today as it always has. While you should not drain your entire savings to start your business, you will have to spend upfront to get yourself started on the right track.

This article is brought to you by The Tax Loft, an accountancy serving Bethel, Maine. We build strategies, systems, and structures to help clients. For more information, contact us today!

Article Written and Submitted by: Katie Conroy

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