Enter in your cash flow forecast the cost of running any business vehicles. Don't include the cost of the vehicle itself - include that under 'Capital expenditure'.
Running costs include:
- the cost of fuel used for business purposes. If you plan to work within a certain area estimate what that mileage will be. If you know the average fuel consumption of your vehicle you can then estimate how much the fuel will cost you
- servicing and repairs
- replacement tyres, exhausts and so on
- road tax
- any tolls and congestion charges incurred by the business
Running at least one appropriately sized van is generally important for electrical contracting businesses, and your business motoring costs are likely to be fairly high.
Travel expenses include all the other expenses incurred on business travel that is not made by car. These might include:
- public transport
- hotel expenses
For example you might travel by train to a trade exhibition and stay overnight. Or you might need to stay for several nights in a hotel or guest house near to a site where you're working on a contract.
Some of these costs, such as fuel, you will incur every month. Others, such as road tax, you can pay annually, every six months, or in monthly instalments (by direct debit). Enter your estimate of motor and travel expenses in the months when you expect to pay them.