10 Updates
Expenses Rise For Small Firms
Photo Credit: Forbes Business

Expenses Rise For Small Firms

Mar 29 2014, 2:44pm CDT | by

If you’re feeling the pinch of higher expenses at your business this year, you have plenty of company. When small and midsized business owners were asked what one thing keeps them up at night in a...

Filed under: news

 
 
 

17 weeks ago

Expenses Rise For Small Firms

Mar 29 2014, 2:44pm CDT | by

If you’re feeling the pinch of higher expenses at your business this year, you have plenty of company.

When small and midsized business owners were asked what one thing keeps them up at night in a national survey released this month by PEX Card, the top response was “expenses eating into profits,” cited by 22% of business owners. Generating new sales was number two, accounting for 17% of responses.

Among the national sample of businesses surveyed at the end of 2013, 63 percent of businesses expected their spending to increase in 2014.

But not all of the spending is a bad thing. PEX founder and CEO Toffer Grant says that the uptick reflects, in part, businesses’ willingness to invest in growth. “People expect to have increased expenses due to improvements in business in general and the economy,”  he says. “I think it’s a very positive report.”

So where are owners spending more? The top categories showing an uptick were compensation for non-sales employees, health insurance, fuel and equipment repairs and maintenance.

Half of companies saw fuel spending rise in 2013, though gas prices have leveled off in many states or come down. For comparison, in 2012, more than 65% of companies saw their tab rise. For small firms with nine employees or less, the average fuel spending in 2013 was $20,500, compared to an average of $135,300 among firms with 10 employees or more.

When considering spending on fuel, it’s important to note that the survey skewed more toward contract businesses and skilled tradespeople, rather than retail firms, notes Grant. And their bigger fuel bills likely means they are busy. “You’re not going to put a truck on the road to burn fuel unless there’s a reason to do it,” he says.

While the cost of healthcare is going up for many firms, that often depends on the size of the business.

For instance, among firms that have up to 9 employees, only 36% expected the Affordable Care Act to affect their healthcare spending this year. Just 21% experienced an impact so far.

The picture was quite different for firms with 10 employees or more, where 58% of respondent predicted they would feel the effects this year. Among this group, 49% reported an impact so far.

Though salary expenses are rising at all firms, firms with 10 employees or more spend a greater percentage of their budgets here. Salaries for non-sales employees averaged 25% of their average budget of $2.3 million, or $580,600, in 2013.

In contrast, smaller firms spent 21% of their average $363,000 annual budget paying non-sales employees, averaging $77,300. It seems likely that a fair number of those surveyed were one or two-person businesses, based on the average salary expenditure.

The firms with one to nine employees average $6,900 a year in healthcare expenses. In contrast, those with 10 employees or more spent $180,000. (Ouch!)

Equipment repairs ran the firms that have one to nine employees $9,300 in 2013. For firms with 10 workers or more, equipment cost $74,400.

While small business owners may have to get creative to outrun these expenses, the increased spending in a couple of key areas could benefit the economy in some ways. For instance, when small firms spend more on salaries, it goes to employees. And the folks who repair the business equipment for these firms may be small business owners themselves./>/>

Hopefully, many businesses will see increased revenue this year to offset the expenses.

Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

New Zealand All Blacks Squad Announcement
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was reje ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern sta ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in comp ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed sai ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year inv ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

2014 Luxury Watches Have Final US Preview Before Their Release
2014 Luxury Watches Have Final US Preview Before Their Release
2014 Watch Releases From Swatch Group Brands The Breguet Madison Avenue boutique was busy June 26 with press and VIP clientele as the luxury watch brand used this date to celebrate “Tourbillon Day.” The event included...
 
 
China to produce its own 'Avatar'
Beijing, July 28 (IANS) China is preparing to produce its own 3D fantasy movie, based on romantic folklore, to make it an epic on par with the US blockbuster science-fiction movie "Avatar".
 
 
Sushma meets UML leaders, ends Nepal visit
Kathmandu, July 27 (IANS) External Affairs Minister Sushma Swaraj Sunday averted a diplomatic disaster by meeting leaders of the ruling CPN-UML just before returning to India after a three-day visit which she said was "productive" and "successful".
 
 
Nepal parliament panel okays energy deal with India
Kathmandu, July 27 (IANS) A parliamentary panel in Nepal Sunday asked the government to sign as soon as possible a "Power Trade Agreement" (PTA) with India under which New Delhi has proposed 100 percent Indian investment or joint ventures with Indian entities in the Himalayan country's power sector.
 
 
 

Latest from the Network

Brazilian soccer standings
Rio de Janeiro, July 28 (IANS) Following are the standings of the Brazilian Serie A championship after the latest round of matches Saturday and Sunday (tabulated under matches played, won, drawn, lost, goals for, goals...
Read more on Sport Balla
 
2.5 bn smartphone users globally by 2015: US report
New York, July 28 (IANS) Nearly 2.5 billion people or 35 percent of the global population is expected to use smartphones by the end of 2015, says the latest report of US-based industry tracker Strategy Analytics. The...
Read more on Celebrity Balla
 
Ronaldinho on his way out: Jo
Rio de Janeiro, July 28 (IANS) Ronaldinho has probably played his last match for Brazilian club Atletico Mineiro, according to the star's teammate and close friend Jo. The 34-year-old has not contacted anybody at the...
Read more on Sport Balla
 
CWG: Indian paddlers lose to England in men's team semis
Glasgow, July 28 (IANS) India lost 1-3 to England in the 2014 Commonwealth Games men's team table tennis semifinal and will have to be content with playing for the bronze medal against Nigeria. The country's top...
Read more on Sport Balla
 
Dolly Parton would sing own songs in biopic
Dolly Parton would perform her own songs in a movie of her life. The 'Jolene' hitmaker doesn't want an actress to have the ''pressure'' of having to match her famous vocals in a biopic, so would allow them to lip-sync...
Read more on Movie Balla
 
Twin blasts in Nigeria kill five
Abuja, July 28 (IANS) At least five people were killed in two bomb blasts in Nigeria's Kano city, a mainly Christian area, Sunday afternoon, police said. The first blast occurred under a bridge in the Sabon Gari...
Read more on Politics Balla
 
Australia gives $5 mn for Gaza relief
Sydney, July 28 (IANS) The Australian government is providing five million Australian dollars (4.7 million US dollars) in urgent humanitarian assistance to Gaza, Foreign Minister Julie Bishop announced Monday. The...
Read more on Politics Balla
 
France wants expatriates to leave Libya
Paris, July 28 (IANS) French government Sunday called on all its nationals to quit Libya, "given the deteriorating security situation" prevailing in the African country. "All our nationals are invited to get in touch...
Read more on Politics Balla
 
Israel denies responsibility for UN school attack deaths
Jerusalem, July 28 (IANS) The Israeli army Sunday denied responsibility for the deaths of 16 Palestinians during Thursday's attack on a UN school in northern Gaza. "The inquiry as well as documented footage conclude...
Read more on Politics Balla
 
India lose badminton semi-final to England 3-0
Glasgow, July 28 (IANS) India lost to England 3-0 in the semi-finals of the badminton competition at the Commonwealth Games here late Sunday night. India's men's and mixed doubles teams fought well over three games,...
Read more on Sport Balla