Too many expenses?


#1

I’m just setting up my VA business and I’ve made a list of all my expenses. My partner (who has never run a business) is adamant that my expenses are too much. I’ve included things like web hosting, stationary, accounting software, virtual landline rental, business mobile phone contract, portion of our mortgage and utility bills, childcare, blog writer, marketing etc
I was just wondering what the average cost of other VA’s monthly expenses are?


#2

The simple answer you record everything you spend on your business! I use my mobile for both work and leisure so I split my rental, but if I used it a lot to make calls for work I could list the work calls also. My business virtual line is paid out of the business account.

You can’t claim for your mortgage as you would be living there anyway, and child care you would be expected to pay for that yourself I think; it is not a business expense. You can claim for heating but I don’t as I don’t want anyone then suggesting I pay business rates on my home.

Your bookkeeper or accountant will explain what you can charge for, best to have a meeting to discuss if you ar not sure.

Good luck with your business!


#3

I think I didn’t word my question quite right. I know what I can and can’t claim as expenses, it was more that my partner is saying that I’m paying out for too much and that I don’t need everything that I think I do.

For example, he says I don’t need a virtual landline, a blog writer, a business mobile etc…

I say that a virtual landline is needed as a landline number seems more professional. I need a blog writer as I’m just not that good at doing it myself and would like someone to keep on top of it whilst I’m focusing on the actual work of the business. I want a business mobile so that I can turn it off at the end of the working day and potentially be receiving calls to my personal mobile when I’m not working.

So I was wondering how much people generally find the things that they pay out for add up to.
And possibly what kinds of things


#4

It’s kind of how long is a piece of string… Some people will bootstrap and spend maybe 5% of their income on costs for their business, others will chuck as many expenses as possible behind the business to avoid paying tax on it and may only be making 20% profit.

It depends a lot on the type of VA business you launch e.g. those whose models include outsourcing to other VAs will have a bigger turnover but lower % profit.

What I would say is that you should include all the expenses that you think are reasonable and that way if you don’t end up using them, you have saved some money for anything unexpected which pops up.

If you buy the UK VA Survey societyofvirtualassistants.c … -products/ it does have an average % profit figure for both solo VAs and multi-VAs which you might find useful.


#5

Sorry, I misunderstood!

Ok, I would suggest that some of what he says might be right - I work fine with the one mobile; I turn the sound off outside of office hrs unless I am out and about, so friends and family call me on the home land line…

I do agree with the virtual landline though - mine only costs me £2 rental per month, and I can add money to the account as and when I need it for making calls. The box that attaches that allows a different ring tone and allows you to use your standard phone costs about £60+ but you can simply use a headset plugged into your PC during your opening hours to start with?

Hope that helps a little!

Debs