Examples of business costs in NettoWise

Practical examples of costs and how they show up in your salary calculation.

This article shows practical examples of business costs and how they affect your salary calculation. The examples use simple numbers so the effect is easy to see.

All costs reduce your profit. That lowers your taxable income and affects your net salary.

For readability the tables show a sample period, usually 6 months. The pattern continues for the rest of the year.

Software subscriptions

Example: an accounting tool of EUR 30 per month.

Input

Go to Portal -> Data -> Expenses.
Click Add.
Choose cost type: General costs.
Choose frequency: Monthly.
Amount: EUR 30.
Period: January through December.

In your salary calculation

	Jan	Feb	Mar	Apr	May	Jun	Total
Profit	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 60,000
Costs	EUR 30	EUR 30	EUR 30	EUR 30	EUR 30	EUR 30	EUR 180
Profit after costs	EUR 9,970	EUR 9,970	EUR 9,970	EUR 9,970	EUR 9,970	EUR 9,970	EUR 59,820

Insurance costs

Example: professional liability insurance of EUR 360 per year, starting in April.

Input

Go to Portal -> Data -> Expenses.
Click Add.
Choose cost type: Insurance costs.
Choose frequency: Yearly.
Amount: EUR 360.
Period: April through December.

In your salary calculation In the full year this is EUR 360. The table shows a 6-month sample period.

	Apr	May	Jun	Jul	Aug	Sep	Total
Profit	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 60,000
Costs	EUR 40	EUR 40	EUR 40	EUR 40	EUR 40	EUR 40	EUR 240
Profit after costs	EUR 9,960	EUR 9,960	EUR 9,960	EUR 9,960	EUR 9,960	EUR 9,960	EUR 59,760

Domains and hosting

Example: hosting of EUR 120 per year, starting in January.

Input

Go to Portal -> Data -> Expenses.
Click Add.
Choose cost type: Sales costs.
Choose frequency: Yearly.
Amount: EUR 120.
Period: January through December.

In your salary calculation In the full year this is EUR 120. The table shows a 6-month sample period.

	Jan	Feb	Mar	Apr	May	Jun	Total
Profit	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 60,000
Costs	EUR 10	EUR 10	EUR 10	EUR 10	EUR 10	EUR 10	EUR 60
Profit after costs	EUR 9,990	EUR 9,990	EUR 9,990	EUR 9,990	EUR 9,990	EUR 9,990	EUR 59,940

Bank fees

Example: business account of EUR 7 per month, starting in March and running through December.

Input

Go to Portal -> Data -> Expenses.
Click Add.
Choose cost type: General costs.
Choose frequency: Monthly.
Amount: EUR 7.
Period: March through December.

In your salary calculation

	Mar	Apr	May	Jun	Jul	Aug	Total
Profit	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 10,000	EUR 60,000
Costs	EUR 7	EUR 7	EUR 7	EUR 7	EUR 7	EUR 7	EUR 42
Profit after costs	EUR 9,993	EUR 9,993	EUR 9,993	EUR 9,993	EUR 9,993	EUR 9,993	EUR 59,958

Small corrections and rounding

Example: a correction of -EUR 18 in November.

Input

Go to Portal -> Data -> Expenses.
Click Add.
Choose cost type: General costs.
Choose frequency: One-time.
Amount: -EUR 18.
Period: November through December.

In your salary calculation

	Nov	Dec	Total
Profit	EUR 10,000	EUR 10,000	EUR 20,000
Costs (correction)	-EUR 9	-EUR 9	-EUR 18
Profit after costs	EUR 10,009	EUR 10,009	EUR 20,018

Swen van Zanten

Developer

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