When you start a business, everyone knows that there are revenues and expenses, but it is not enough to understand and know that to start a business successfully. It is good to be aware that these two main categories (revenues and costs) can certainly be broken down further, and if we do, it can be a very good method in terms of predictability. It helps us deal with their money (be it own or an investor’s). Therefore, it is worth knowing the additional categories:

INCOMES

• Fixed revenues: Fixed revenue typically comes from some agreed upon contract with the same level of revenue each quarter (e.g. interest received).
• Sale: Our revenues may even come from sales (gross) or from the sale of assets.

COSTS

• Personnel costs: Net wages and salaries of all employees, and contributions to be calculated in addition to wages and salaries (employer ‘s and employee’ s contributions).
• Material costs: The costs of raw materials fall mostly into this category. Although it may not seem significant at first hearing, it is very significant for most activities and the variety of raw material needs is diverse. It’s worth thinking through what we use, and what is its cost.
• Costs of services used: Because we live in a world of services, there is an endless range of possibilities for what to use. Fees for basic day-to-day services such as lawyer and accountant fees, office rent and associated overheads, other investment costs, and subcontracting fees are included in this category. It is important to find out exactly what fees are included here.
• Costs of other services: There are even other services that come with a permanent system release. These are, for example, the subject of banking and insurance, taxes (business tax, corporate tax, sole proprietorship tax, sales tax).
• Purchase value of goods sold: When we sell a product or good, its cost (which it took us to acquire) should be accounted for as an expense.
• Cost of intermediated (sold) services: If we mediate a service, we also pay some so we can resell it. This cost should also be considered as a cost.
• Other costs: Although a lot of costs have already been listed, there are still some that do not fit anywhere, so they should be included in the other costs category. This includes anything that has involved us with some kind of ‘burden’ or ‘expense’.