How To Track Business Expenses

There is a difference between what you perceive to be your business worth, and what it is actually worth. If you pay attention to the latter, you will realize what is working in your business, the processes to continually use and how to make more informed business decisions in general. Tracking your business expenses can even assist in the prediction of business growth in years to come. You will become more confident about what your business would be like, and know if it is actually thriving in prevalent circumstances.

Staffing and salaries

Marketing and Advertising

Taxes and Dues

Utilities

Office supplies and maintenance

Travel

Trainings etc.

Financial management covers financing, book keeping records, financial projections, financial statement and budgeting. When a business has a sound financial management system, it is undoubted that they would have also a sound financial health as the two concepts go hand in hand.

Budget and plan effectively

Take advantage of deduction in taxes

Manage business cash flow

Understand business assets

Identify cost savings avenues

Recognize business progress

Communicate business prospects effectively to potential investors.

To track business expenses, you need to do the following:

The best way to track your business expenses is to use the right tools that will make the required financial information quite accessible. To tract expenses manually, you can do the following:

Choose an appropriate accounting system like Microsoft Excel where you can easily take inventory of your expenses, and it can be managed by any member of your accounting department.

Store receipts. You can set out time to file your receipts either daily or weekly, so they are neatly arranged. Use binders and file folders, putting the receipts for a month in a place, and then filing them altogether. For digital receipts, there are apps that help you automatically add an expense to your expense tracker when it is set up so there is visibility on all expenditure made. Ensure that the purpose for each expenditure is articulated for as well.

Connect your financial institutions. This helps to simplify the tracking process such that you can access all banking transactions as soon as it is authorized, directly from your accounting software or system.

Record all expenses immediately. If you are recording manually, it should be ensured that it is usual practice for all expenses to be recorded as soon as it is made.

Review and categorize expenses: As you keep track of your business expenses, ensure you review so you can identify if an expenditure is worth reevaluating.

Tracking business expenses helps not only to conserve relevant data for your business, but also to ensure improved long-term decision-making that will benefit employees, customers and the entire economy.