Costs

The following gives some hints on what costs you can include in your accounts. You may not have costs for all the headings - don't worry about that. Just use this as a checklist for items that you can record as costs for your business.

Remember costs must be incurred for the sole purpose of the business. You cannot claim for personal expenses e.g. suits or general clothing.

Cost of Sales

The cost of the goods you have acquired to make your sales. For example

Subcontractors in the construction industry should include here the cost of any materials supplied
Taxi drivers, minicab drivers etc. and those in the road haulage industry should enter fuel costs in this box rather than elsewhere unless they are claiming mileage rate
Hairdressers should enter shampoo and hair product costs here

At the end of the year you will need to make an adjustment for the stock you have left

So the value for cost of sales will be:

Value of opening stock brought forward from last year
Plus Purchases made during the year
Less value of closing stock at the end of the year

Other Direct Costs

Discounts
Commissions payable
Carriage
Research Costs

Employee costs

For permanent, temporary and casual employees include

Salaries
Wages
Bonuses
Pensions
Benefits
Employer's NICs
Canteen expenses
Recruitment agency fees
Subcontract labour costs

Premises

Rent
Business rates
Water rates, light
Heat, power
Property insurance
Security
Use of home as office

Repairs

Repairs and renewals
General maintenance of business premises
General maintenance of machinery

General administrative

Telephone
Broadband / Network
Postage
Stationery
Printing costs
Courier services
General office expenses
Professional journals and subscriptions
Insurance e.g. public liability etc

Travel & Subsistence

Insurance
Servicing
Repairs
Vehicle Licence
Petrol or diesel - or mileage claimed at approved rates
Rail
Air
Taxi fares
Hotel accommodation costs
Subsistence or similar costs

Advertising

Advertising
Promotional costs
Marketing

Legal & Professional

Accountant
Solicitor
Surveyor
Architect
Stock taker
Professional Indemnity Insurance

Interest and financing

Interest and alternative finance payments on bank and other loans (including overdrafts) and alternative finance arrangements
Bank charges
Credit card charges
Hire purchase interest charges
Similar costs not included elsewhere

Other Expenses

Any expenses not included elsewhere