S/o business owners: what expenses do you have

notshanarishona ↓

Thu, Sep 05 2024, 7:52 pm

I will start:
My business: swimming school
some expenses we have off the top of my head
High electric costs- sometimes upwards of $800 a month
Chemicals
Clean up
Yard work
Water/ sewer bill
Insurance
Secretary
Payroll costs
Scheduling software
Unemployment insurance
Taxes
Credit card processing fees
Swimming lessons aids
Storage containers
Goggles
Opening/ closing the pool each beginning and end of season
Pool maintenance as parts break (typically about $500 a season, sometimes more)
Pool vacuum (s)
Cpr equipments
Lifeguarding books
Etc

↑ notshanarishona ↓

Thu, Sep 05 2024, 9:08 pm

When I worked in restaurant industry:
Most common extra expense was food not sold, you aren’t just paying for your sandwich, your paying so that the restaurant can lay out $ to have avovado and cheese and fresh bread available even if that means throwing out 25% at end of day

With clothes most common extra expense is obviously last season or returns that have to be sold at discounted

Working as a sports coach biggest expense was equivalent and insurance

Anyway my theory is that although many people are greedy people are underestimating the costs in being a small business. I am curious if others agree with me

amother

Dodgerblue

Thu, Sep 05 2024, 9:10 pm

Food distribution business
Truck lease
Gas
Tolls
Drivers
Salespeople (commission based)
Workman’s comp
Auto insurance
Travel for salespeople
AR insurance (for restaurants or groceries that go bust)
AR/AP salary
Credit card processing fees
Official Expenses (rent, phone, internet, supplies)

amother

Pink

Thu, Sep 05 2024, 10:01 pm

Sheitel macher

The space
T pins/ Bobby pins/ hair spray/ shampoo/ conditioner
Cleaning lady
Secretary/blow drying girl/ washing girl
Taxes
Bank fees
Shipping costs is a huge one (wigs going back n forth)
Blow dryers/ irons/ wig stands
Bags/tags/ personalized items

amother

Nectarine

Thu, Sep 05 2024, 10:28 pm

Interesting thread! I'm not a business owner perse but get paid on a 1099 contractor
Speech therapist
*gas and car to and from clients
* constantly getting new toys, books, games materials...
*licensing and ASHA fees, continuing education fees., course to stay up to date and learn new techniques. This is actually a lot for example just took a $3000 course.
*taxes

amother

Snowflake

Thu, Sep 05 2024, 10:40 pm

Interior Designer

Softwares: CAD, Rendering, Photoshop, Canva, Bookkeeping and Project Management softwares
Office space rent
Samples and Reference materials
CC processing fees
LLC Filing Fees and accountant fees
Gas and tolls traveling to consults and site visits
Entrance fees, parking and traveling fees for Design shows
TAXES 40% don't forget Sad

↑ notshanarishona ↓

Fri, Sep 06 2024, 1:49 am

amother Nectarine wrote:

Licensing is a big one. As a teacher we are required to do 120 credits every 5 years in my state which is also expensive and spending 1000’s on the initial licensure. I am almost considering letting mine lapse because of it.

↑ notshanarishona ↓

Fri, Sep 06 2024, 1:55 am

amother Nectarine wrote:

↑ notshanarishona ↓

Fri, Sep 06 2024, 1:57 am

amother Pink wrote:

I always wondered if any sheital machers paid taxes, the ones I go to only accept cash or zelle.
Obviously a cash only business should be cheaper than one of the books because not paying taxes and insurance, etc although I don’t particularly like to support the concept of people cheating on taxes and benefits

amother

Taupe

Fri, Sep 06 2024, 2:05 am

amother Pink wrote:

Curious what bank fees you’re paying? You really shouldn’t be paying any fees.

amother

Green

Fri, Sep 06 2024, 2:06 am

notshanarishona wrote:

Cash only doesn't especially mean they don't pay taxes.
When I request cash I report it on my income but I can chose which month I report it in.
When getting a mortgage I needed to prove I was earning x amount each month but during Pesach/Sukkot/summer I earn less. I will use the cash to deposit it in my account during those month or date the invoices for that month....
I had to pay for my child's babysitter in cash. It was easier for me to receive cash from my clients so I had it for my babysitter and didn't have to remember to take out each month from my account.
(I'm not a sheital macher...)

Bnei Berak 10

Fri, Sep 06 2024, 2:19 am

notshanarishona wrote:

Accepting c/cards means you pay a certain percentage to the c/card company which is another expense. And what about c/card disputes?

amother

Latte

Fri, Sep 06 2024, 2:51 am

Mental health Therapist- currently not in private practice but about to start one IYH. So likely missing some expenses but this is what I have come up with so far...

Monthly/yearly fees:
Licensing fees
CEUs
Additional trainings to enhance skills (not all qualify for CEU credit. There is one I want to take but cant afford right now if it wont count for CEUs).
Malpractice insurance
Electronic health record, with additional fees if I do telehealth, want text reminders for clients or anything "extra"
Tissues
Paperwork
Items I copy for clients like handouts, worksheets
Electricity
Rent
Internet
Credit card fees - and we need to use a HIPAA compliant software for that.
Grad school loans
Health insurance
Advertising, business cards, Website
Membership to state association for my license so I can stay informed on updates to laws etc.
Separate work phone.
TAXES.

Plus initial outlay expenses:
Furniture
Decorating the room (art, paintings, couch, rug, lighting... all adds up to a lot!!)
Computer
Sound machine to block out noise
Any special devices for a specific modality. Those light bars or buzzers for EMDR are expensive....
Working unpaid for 5 years to get licensed.
Underpaid for several more to gain experience before doing private practice

↑ notshanarishona ↓

Fri, Sep 06 2024, 7:23 am

amother Taupe wrote:

Curious what bank fees you’re paying? You really shouldn’t be paying any fees.

Personally, I pay 2.9% cc fees, invoicing software. Maybe that’s what pp means .

↑ notshanarishona ↓

Fri, Sep 06 2024, 7:26 am

Bnei Berak 10 wrote:

Accepting c/cards means you pay a certain percentage to the c/card company which is another expense. And what about c/card disputes?

It is true that it’s a risk but I find that when I don’t take credit cards I am chasing people to get paid and in uncomfortable positions of having kids show up whose parents didn’t pay.
When you accept cc’s , people have no excuse and typically pay right away so I have more cash on hand.
The 1 time I got dispute (because people wanted to cancel from a group lesson the day before starting when I had turned others down and held their spot), I showed the credit card company the sign up form and they sided with me.

↑ notshanarishona ↓

Fri, Sep 06 2024, 7:27 am

Also my business account doesn’t allow zelle and I prefer to keep all cash going to my business account and not through my personal account. Checks are a bit of a pain to deal with and have the risk of bouncing, keeping track of post dated, etc

amother

Salmon

Fri, Sep 06 2024, 8:33 am

notshanarishona wrote:

I’m a photographer, not a shaitel macher. I accept cc but very reluctantly. I pay a high fee on each transaction. It doesn’t mean I don’t pay taxes, it means I don’t want to pay the cc processing fee

amother

NeonOrange ↓

Fri, Sep 06 2024, 8:48 am

notshanarishona wrote:

I have a business accept cash and Zelle (also cc) and I charge and report taxes.
I much prefer tax and Zelle because I don’t have the added fees, but I absolutely 100 percent collect and report sales tax AND report it for income tax