# The Complete Guide to Overlooked Business Expenses: What You Need to Know
When creating a business budget, it’s easy to overlook some important expenses that have the potential to significantly impact the health and longevity of your business. To ensure that you’re accounting for all crucial costs, consider the following often-overlooked expenses:
## Your Own Salary
Way too many people go into business making decisions around profitability without thinking about their own basic needs. You do not necessarily need to pay yourself, but you should be part of the equation. If you are making pricing decisions, contract decisions, or expense decisions without thinking about paying yourself, you are making a mistake.
Zane Stevens, Protea Financial
## Potential Business Opportunities
Budget for unexpected opportunities. Having such reserves allows for seizing arbitrage investments without compromising existing budgets. It’s a strategic allocation of your capital, ensuring flexibility and the ability to take advantage of unforeseen and unplanned opportunities while fostering business agility.
Devesh Dwivedi, Higher Valuation
## Bonuses and Team-Building Activities
Budget for annual bonuses and team-building initiatives. Most businesses distribute a profit share or fixed bonuses annually, and organize activities (such as a Christmas party), without budgeting and allocating this throughout the year. This can quickly jeopardize any form of profitability assessment or financial targets early in the year and tank the cash deposits when the time comes.
Mario Peshev, DevriX
## Industry Research
To grow a business and survive the cutthroat competition, you have to get acquainted with the needs of your customers, analyze competition, and be familiar with ever-changing market trends. This requires extensive research. So, you should have a clear idea of the funds and resources you may need.
Stephanie Wells, Formidable Forms
## Business Insurance
Entrepreneurs should not overlook budgeting for business insurance each year. This includes general liability, professional liability, and property insurance, which are essential for protecting against lawsuits, accidents, or damage. Adequate coverage is vital to prevent financial losses from unforeseen events.
Anna Anisin, DataScience.Salon
## Professional Development
Entrepreneurs should always allocate a budget for annual professional development, a sometimes overlooked but vital investment. This allocation is crucial due to the ever-changing business environment. It enables entrepreneurs to stay competitive, adapt to industry trends, and remain up to date with emerging technologies, contributing to personal growth and the long-term success of their businesses.
Kristin Kimberly Marquet, Marquet Media, LLC
## Unexpected Costs
Honestly, I think all entrepreneurs should budget for unexpected costs. I have a fund that I put money into each month because there’s no question something will come up when I least expect it. I’ve had to dip into this cash several times a year since I started saving. This strategy has helped us stay on top of things and keep things running smoothly, even when extra costs pop up.
Daman Jeet Singh, FunnelKit
## Cybersecurity
Business owners frequently overlook the need for robust cybersecurity measures. With the rise in digital threats, it’s imperative to invest in cybersecurity that protects sensitive data, preserves your business reputation, and prevents costly breaches. Prioritizing this expense ensures long-term viability and safeguards against evolving cyber risks.
Jared Weitz, United Capital Source Inc.
## Networking Events
Entrepreneurs should budget for networking events that they will be attending. Sometimes, these costs can end up very high if not planned for properly. Every entrepreneur needs to attend multiple events to grow connections, and budgeting for them helps everyone to decide the right events with the right ROI.
Piyush Jain, Simpalm
## Product Research and Development
For any company in the tech sector (as well as others, such as pharmaceuticals), research and development is an essential expense. You may not overlook it completely, but it’s easy to underestimate the time and cost of doing thorough research on every detail regarding a product or service. For example, it’s important to do testing, surveys, or focus groups to test the customer experience for products and services.
Kalin Kassabov, ProTexting
## Software and Equipment Upgrades
As entrepreneurs, we may budget for the initial purchase of equipment and software, but then we overlook the need for regular upgrades. However, outdated equipment and software can lead to decreased efficiency, increased downtime, and potential security vulnerabilities.
Andrew Munro, AffiliateWP
## Taxes
One expense many business owners find out about the hard way is taxes. You should always have an account put aside for taxes. Between property, income, sales, and other business fees, you could owe a lot more than you think. Don’t get caught off guard, and always hire a professional to ensure you’re not overpaying.
Chris Christoff, MonsterInsights
By being aware of these often-overlooked expenses and strategically budgeting for them, you can better position your business for long-term success and financial stability.
