Hidden Costs in Small Businesses
Hidden costs are expenses that owners overlook because they are small, irregular or not recorded properly.
Small daily spending
Airtime, transport, packaging, repairs and small purchases can become large monthly costs.
Stock loss
Damaged, expired or stolen stock reduces profit even if sales appear strong.
Transaction charges
Payment and withdrawal charges should be recorded if the business pays them.
Owner withdrawals
Money taken from the business for personal use affects cash flow and should be tracked.
Recording hidden costs gives a truer view of business profit.
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