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'.
Vehicle running costs include:
- the cost of fuel used for business purposes. If you plan to offer a delivery and collection service within a certain area you should estimate what the 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 road tolls and congestion charges incurred by the business
Some of the tools and plant machinery that you hire out may run on petrol or diesel. If you supply machinery with a driver at a daily or weekly rate then you will probably pay for the fuel. So you'll need to budget for that here. However, your customers are likely to pay for the fuel to run any tools and machinery that they operate themselves.
Travel expenses include all the other expenses incurred on business travel that is not made by car. These might include:
- travel by public transport
- hotel expenses
- subsistence costs
For example you might travel by train to a trade exhibition and stay overnight.
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.