Other office supplies such as coffee and print toner.Īrguably among the three major business spending categories, periodic expenses are the most difficult to forecast.Costs to maintain a home office, which can be a common expense for self-employed people or small business owners (though it’s also important that this space be used strictly for business purposes).It’s smart to check a recent IRS publication or have your CPA do so before claiming business-related deductions on your tax return Business meals and entertainment expenses, which are subject to IRS rules and regulations.Professional services, independent contractors, and other skilled individuals who might assist a business on a periodic basis.Periodic: These tend to be unplanned, irregular, and thus hard for companies to anticipate. That said, businesses can look at the averages of their variable expenses over long periods to get an idea of how much to budget.īusinesses can also enjoy a greater deal of control over variable expenses if they work with their vendors, such as urging them to accept forms of payment that have lower transaction fees, such as the automated clearing house (ACH). It goes without saying that variable expenses are often driven by factors beyond a company’s control. Salary increases might be becoming more of a variable expense in the short-term, however, with U.S. For instance, in times of low or consistent inflation, wage increases might remain fairly static, with roughly the same percentage increase needed to cover cost of living increases each year. Sometimes, fixed expenses can become more variable.
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