If you’re starting an online business, there will be many different things you’ll need to keep in mind if you want to succeed. CEO of Everest Business Funding Scott Crockett says it can be easy to get caught up in the day-to-day tasks in front of you that you forget about recording expenses until you need them come tax time.
By putting this financial tracking off to a later date, you’ll create extra work for yourself and put yourself in a disadvantaged position. Below are some of the common expenses that anyone who is starting a business should track.
Domain and Hosting Fees
A website is crucial for any business today, especially for an online business. Creating a website is easier than ever, but everyone will incur some basic expenses for doing so.
Even if you create your website on your own, you’ll have to pay domain registration and hosting fees. Your domain registration will secure your domain name so people can find you. Hosting fees will allow your site to be visible online. It’ll provide you with storage space to upload content to your website so that visitors actually have something to see when they visit your site.
Both of these fees are typically charged on an annual basis.
You may decide that you want to hire an outside web developer to create your website. If you do, you should track the associated fees so you can include them in your business expenses later.
Design fees can also apply to logo creation or any other materials you may use for marketing purposes down the line. These expenses may be one-time fees or ongoing expenses, depending on what you’re paying for.
If your business requires specific software to run, these are fees that you should include as part of your ongoing expenses. Many software packages today run on what’s known as software as a Service (or SaaS). Essentially, you pay a monthly fee for access to the software rather than a one-time, upfront fee.
Some software programs are relatively inexpensive, but you should record even these fees. Potential software you might purchase includes word processing, spreadsheets, accounting, or photo editing/design.
Any expenses you incur related to marketing and advertising should be recorded as they happen. This could include traditional advertising avenues such as digital display ads or social media ads. Or, they could include paying a fee to have your page on an e-commerce platform highlighted as a featured provider.
Scott Crockett says that marketing fees are something that will vary from time to time but should always be recorded as they happen.
If your business is going to accept payments online, you should record the fees you pay to process the payments. This could include traditional credit card processing fees, or they could even include online processing fees from third-party payment processors such as PayPal or Venmo.
No matter where the fees come from, they should be recorded, as they are likely to add up as significant business expenses.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.