Different types of businesses have their expenses, and it is certain that your business will have some specific expenses that it incurs every month. Maybe sometimes, you are not prepared, but it is best if you are always prepared and with a reliable expert of accounting services in Singapore, you can handle these expenses more effectively. With accounting services in Singapore, you will be able to verify these expenses which in turn reduces your business income and ultimately your business taxes.
Let’s have a look at some of those expenses below;
You are obligated to pay business tax every month, but you can lower it by verifying all the expenses that the business incurred during that month and having them deducted. The only way you can verify these expenses (Also see Allowable and Disallowable Expenses) is by keeping excellent records which can be done by a professional accounting service in Singapore.
Your business needs a place to operate from, and there is a specific amount you will have to spend to remain there. It could be a building mortgage, leased retail or office space, and if you work from home, there are payments you make on your home which you will have to take out from your business since the business operates from inside your house.
Computer, Phone and Utility Expenses
For every utility used at your place of business, you have to pay. From electricity, water, gas, sewer to trash pickup. If your business is home-based, you will deduct the costs depending on how much space in your home the business is taking up. If you have a specific location for the business, some of these expenses are included in your rent. Also, remember your telephone and internet expenses. Other expenses include office supplies, purchase, and maintenance of equipment and facilities as well as maintenance of the business environment like snow removal, lawn mowing, etc.
Insurance is essential for every business, and there are different types of insurance such as property/liability/casualty insurance which is used to cover unexpected catastrophic events like robbery or fire. There is also the business interruption insurance which covers your inability to operate in your business location for some time. Other types of insurance include product liability insurance, disability insurance, and malpractice insurance. A professional accounting services Singapore can help you monitor where your money goes.
Salaries, Wages, Benefits and Payroll Taxes
Your employees have to be paid for work done and be given benefits from time to time. You can have a payroll system in place for this.
You have to pay your attorney, tax advisor/CPA and every other professional business consultant you work with. These payments may not come every month, but you should include them in your budget.
Loans and Tax Payments
All of your monthly payments on your loans, lines of credit will be a part of your business expenses. Pay attention to the interests on the loans for tax purposes.
Marketing and Advertising
You have to promote your business, and this does not come free. From social media marketing and general internet marketing to physical marketing such as billboards, newspaper advertisement, television advertisement, etc. you can put these expenses under office expenses.
Other miscellaneous expenses you have to track include Travel Expenses, Entertainment Expenses, and Business Associations Fees which include the costs of joining a professional association or business group. All these expenses are unavoidable; they can only be minimised, and with proper monitoring, you should be able to do well with your business.