There are many financial benefits associated with running a business out of your house. For example, you may save money by eliminating a commute from your workday. You can avoid having to pay rent for an office space, and you may benefit from numerous home office tax deductions. However, there are also a few costs associated with running a business from home that you should be aware of as you prepare your budget.
Property damage is bound to occur at home regardless of whether you run your business out of the house or not. However, when you experience roofing damage, a broken HVAC system or other significant issues while you work out of your house, the matter may require an urgent response. After all, your ability to conduct business may be impaired until the repairs have been completed. In addition, you are responsible for these expenses, but you may not have to pay for business property repairs if you lease your office space. Because of this, you should have a healthy rainy day fund available to pay for these types of unexpected expenses.
Many people believe that they will save money on business expenses by running their business out of the house. For example, you may assume that your home electricity bill will not increase and that this expense will be covered by your normal household living expenses. However, you may bring several business machines into your home office that use a considerable amount of energy. For example, you may have several computers, a printer, a copier, a fax machine and additional machines that can dramatically increase your home energy cost.
If you run a small business and never bring customers or clients into your home, your regular cleaning habits may suffice. However, if clients visit your home office periodically, you may need to hire a professional to more thoroughly clean your home. Cleaning service may also be necessary in order to keep your home clean in between your own efforts. After all, you may not have time available to clean your home as frequently as necessary.
When you run a business from home, you can save a tremendous amount of money in numerous ways. You may also have greater control over your schedule and enjoy the convenience of working and living in one space. However, running a home-based business may also result in increased or extra expenses in some cases. Remember that many business-related expenses may be tax deductible, but you still need to account for them in your business budget.