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Saying goodbye to your hard-earned money is never easy, of course. But as the saying goes, sometimes you have to spend money to make money.

In this episode, we’ll break down a few of the different fixed and variable costs and expenses you can expect to pay while running your business, and best of all – how to automate them. You’ll also hear how to take the pain out of tax season.

  • Episode Transcript

    Episode five, money goes out.

    Welcome back to From Dollar One by Interac. In our last tip, we touched on keeping track of the ins of your money. This tip is all about the outs.

    Now we get it, saying good bye to your hard earned money always hurts. But as the saying goes, sometimes you have to spend money to make money. And when it comes to costs that help keep your business in business, it’s less like saying goodbye to your money and more like see you later.

    Alright. Let’s cover the basics of costs.

    Business costs are any expenses that you incur to run your business. There are two types of costs, fixed and variable.

    Fixed costs are all the expenses you have to pay regularly regardless of how your business is doing. This is stuff like rent, utilities, license fees, account subscriptions, and loan payments. Variable costs are a little more, well, variable. The cost can go up and down based on how much you produce, sell, or even need. This would be costs like transportation, materials, shipping fees, and advertising.

    Whatever expenses you have to pay out, if you’re looking to save some time, you can make a lot of these payments with Interac e-Transfer to keep a record of the payment. Plus, when you pay with Interac e-Transfer, the money is transferred from your account immediately, so there’s no need to do any mental math on how much you have.

    Like we talked about in the last tip, knowing how much you’re spending to keep your business going is part of running a financially healthy business. For one, it can help you make faster, more informed budget decisions. And when your receipts and expenses are in order, it can save you precious time come tax season.

    PS, we have a tax prepping guide you can access by following the link in the description. And if you need some help to update your books, we have useful templates for balance sheets and invoices, which you can also download directly at the link in the description.

    Taxes, bills, expenses, we get that talking about these topics isn’t always the most relaxing. So if you need some tips to help bring the stress levels down a few notches, check out the mind over money chapter on Interac.ca/DollarOne.

    And don’t forget to sign up to our from dollar one newsletter for even more handy business tips. We’ve got one more tip left for you in this chapter, so stay tuned.

     

This article offers general information only and is not intended as financial, legal or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subject matter discussed. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Interac Corp.