Small business startup expenses are the costs which you need to spend to get the new business up and running, ready to start producing and selling goods and services.
What you define as startup expenses is completely a matter of opinion. Some costs are clearly one off startup expenses for example legal fees to obtain a lease on new premises. Other costs are not so well defined, for example initial printing and stationary costs might be defined as startup expenses, but at some point printing and stationery becomes a normal day to day trading expense.
The start up costs template is used to estimate the business start up costs and funding required to get your business off the ground.
Start up costs are cost you incur before your business starts. They can be separated into expenses, such as legal costs which are charged to the profit and loss account and form part of the opening reserves of the business, and assets, such as furniture, which are capitalized and form part of the opening balance sheet of the business. The total start up costs, expense and assets, must be matched by start up funding, in the form of supplier credit (accounts payable), debt such as bank loans, and capital from investors and from the owner of the business.
Last modified September 20th, 2019 by Michael Brown