Essential business expenses every sole trader has to pay and how to manage them
It is fair to say that no one is looking for new ways to spend money right now. We do not need to tell you that we have been through a very tough couple of years, and that there are no signs on the horizon to indicate that things are going to get any easier. Even as the UK government announces plans to ease the strain on households and businesses, the reality of the cost-of-living crisis is impossible to ignore. If you are a sole trader, you know that your freedom also opens you up to a lot of additional risks that people on a payroll do not have to worry about.
That means that the old cliché about needing to spend money to make money is, sadly, quite true. Because as much as we want to make sure that we are covering our backs and giving ourselves the security that we need, we also know that we need to keep pushing forward. We need to find new business, we need to compete for new contracts, and we need to keep raising awareness of our brand. Here are a few essential business expenses that you will need to pay as a sole trader and how you can manage them.
Business software
If you want to make sure that you are continuing to drive your business forward, then you cannot be relying on free versions of software, or versions from several years ago that you have yet to update. There are so many reasons why it is essential to pay the fees to keep your business software up to date, but it is also important to remember that these can be claimed as an essential business expense to your company. It is always worth the cost to know that you don’t have to worry about compatibility issues or software crashing at the worst time.
Business insurance
When we are looking to cut costs, we need to remember that there are some things that we simply cannot do without, and business insurance is one of them. Of course, it goes without saying that we all hope that we will never have to use it. But things are incredibly chaotic out there right now, and you can never predict when a client or customer might suddenly decide that they want to take legal action against you. When this happens, you will find that the costs start to stack up very quickly. You will need to seek legal advice, and once that clock starts ticking then the fees will too.
Every sole trader needs to find an insurance firm that can give them the flexibility and the peace of mind they need. If you are looking for professional indemnity insurance for sole traders, then get in touch with the team at Suited. With Suited, you know that there will be no hidden fees, you can cancel at any time, and you will have access to a DIY portal. Visit their website to find out just how easy it can be.
Business offices
A lot of sole traders out there were just fine when the massive push to work from home occurred a couple of years ago. However, if you are just launching your small business, you may not be aware of what you can bill as a business expense when it comes to your workspace. Now, the specifics will vary depending on the size of your business and the size of your home, but you may be able to claim some of your household bills. Of course, if you operate a separate office or store, then you will also be able to claim these as a business cost.
Cybersecurity
The cybercrime wave that has swept the world has been one of the most talked about issues of the last couple of years. Businesses in the UK have been incredibly hard hit by this trend. What’s more, there is no sign that it is going to slow down any time soon. If you are a sole trader, you need to remember that you are not just gambling with your personal information and finances if you cut corners on your cybersecurity. You are also putting your clients and customers at risk. It is well worth paying for good cybersecurity advice and software, and this is absolutely billable as a business expense.
Marketing
We are sure that you are well aware of how competitive the marketplace is right now. It is going to be an uphill battle to get your brand out there. Hiring a digital marketing team, or even investing in pay-per-click marketing, is going to be essential to ensure that you find your target audience. It is important to remember that there are a lot of ways that you can make this more cost-effective. Use SEO on your home page to give yourself a boost in the search rankings. Invest time in your corporate social media page to demonstrate your expertise and experience. Above all, you should avoid paying for a big digital marketing campaign that is not informed by your own customer data.
