Common Budget Oversights By Entrepreneurs

It’s usually at this time of the year when most business owners begin to plan their budgets. You only have a couple of months before you need to submit your accounts to the government and start all over again. So, it’s wise to ensure you leave no stone unturned when organising your strategy for 2017. The issue is that lots of new entrepreneurs make mistakes and overlook essential costs. That can become a real hassle if they’ve spent all their money thinking they didn’t need reserves. In an attempt to stop that from happening to you, we’ve published this article. Read it carefully, and make sure you don’t overlook any of the expenditure we mention if you want to succeed. At the end of the day, the rest is down to you. We just wanted to offer a helping hand.


Accountant fees

Lots of people seem to forget they have to pay their accountants at the end of the tax year. If you do that, you’re going to find yourself in a sticky situation. The guys at say you need to be careful. Failing to pay your accountant could result in them refusing to submit the tax return they’ve prepared. When that happens, you might have to run around trying to get another one sorted quickly. Failing to file your return by the deadline will mean the government slaps you with a fine. You don’t want that to happen, so ensure there is always enough cash left in your accounts to pay the people who matter most. At the end of the day, your tax specialist works hard for your brand. Don’t insult them by forgetting to keep enough money aside to pay their charges.


Marketing costs

All business owners should understand that marketing can become an expensive process. However, most forget that new concepts appear all the time, and they need to act fast to capitalise. Experts from have been saying it for years. With that in mind, you should always put more money aside than you think you will require. That way, you can try out new ideas whenever you discover them, and you can continue to improve your promotional efforts. Maybe you decide to launch a new product or service in July? You might need to spend a considerable amount to ensure all your customers and clients are aware of the release. So long as there’s lots of spare money in your budget, that won’t become an issue.


Employment expenditure

If you’re starting a new company, you probably haven’t employed anyone yet. That is because most people realise it’s better to do things themselves during the early stages. However, you will need to create a strong team as your business grows. That means you might have to navigate the employment process at some point this year. Make sure you put some cash aside in your budget for that too. You could have to employ the services of a lawyer to create your contracts. You will also have to purchase different insurance policies. The process of paying your staff using PAYE can also become expensive. With a bit of luck, your accountant should be in the position to let you know how much everything will cost.


Legal fees

There is no way of knowing when another firm will decide to take you to court. Perhaps there is a patent dispute or something similar? Maybe they’re just trying to push you out of the market? Either way, you MUST make sure you keep cash aside to pay for legal assistance. It’s also wise to ensure you build a healthy relationship with a business lawyer ahead of time. That way, you can make sure they are ready to swing into action the moment something goes wrong. You might also need their assistance with employment disputes further down the line.

If you consider all those costs when planning your budget this year, you should have everything covered. The basic rule of thumb is that you should always overestimate everything to allow for unexpected expenditure. That should help you to weather any storms and keep your business afloat.  If this is the first time you’ve launched a company, you are going to make a LOT of mistakes. However, you shouldn’t feel disheartened. You are going through a learning curve that will benefit you in the future. So, you just need to work hard, remain dedicated, and try your best. When all’s said and done, closing your company and trying something new isn’t the end of the world. Just do your best to get things right and learn from your errors.

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