The second and final instalment of our PAT Business Finance miniseries looks at different business costing.
Business costs can end up being extensive if you do not take care to ensure that you keep them under control.
Your PAT testing equipment can be a big initial cost for your business and it is important to ensure that you consider which machine will best suit your needs without costing you 
great financial strain. See our previous post on "Five Steps to your Perfect PAT Tester" for more information.
If initial start-up costs are an issue, consider other financial options to fund the equipment you need for your PAT business. However, your ability to make regular payments in the future must be carefully considered before committing yourself to this route.
As far as customers are concerned, it is important that you ensure all paperwork is updated and that clients are aware of approximate costs before carrying out any PAT testing work on their premises. It is also important to ensure that the client is informed of any unforeseen additional costs or charges before you carry out the extra work.
If you wish to give your customers credit, it is important to clearly define a policy beforehand that sets down standard payment terms. Ensure that you issue all invoices promptly and look at penalty charges for late payments.
Tax is also another very important business cost that must be considered. You may have to pay more than one type of tax, so if you are at all unsure it is best to contact http://www.hmrc.gov.uk/startingup/ for information on business tax and starting out in business.
Contact a business advisor for help on starting a new PAT business and always ensure that you are aware of all your costing commitments.
