Tracking your business expense is just as easy as 123. No, really! Keeping up with the day-to-day activities of your business is a full-time job but managing your business expenses does not have to be.
Business expenses are costs incurred while operating your business. These can include costs such as:
- Rent
- Phone expenses
- Utilities
- Advertising
- Payroll costs
- Loan payments
- Transportation costs
- Mail/Postage
Here are some tips for tracking your small business expense:
- Categorize all your business expenses
- Save all your receipts
- Do not mix your personal and business expenses
- Use an accounting software
- Reconcile your expense with your bank account
Tracking Your Small Business Expense
- Categorize all your business expenses
Organized your business expense into categories for example rent, phone, and utilities. Properly organizing and categorizing your transactions makes it easy to find those records later if your business is audited.
- Save all your receipts
Yes, you have to save your receipts! There are several receipts apps like Expensify and QuickBooks that allow you to snap a picture of your receipt and attach it to your transaction.
- Do not mix your personal and business expenses
Open a separate business bank account for all your business transactions. This eliminates mixing any personal expenses with your business expenses.
- Using an accounting software
The best method to track all your business expenses is to use a reliable and trusted accounting system. One of the best accounting systems for any small business is QuickBooks. You can link your business bank account to QuickBooks and it will automatically download all your transactions into QuickBooks.
- Reconcile your expenses with your bank account
At the end of each month reconcile your bank activity to your books and ensure that no expenses were missed and all your expenses have been categorized.
How Can Capital Accounting Help?
We provide dedicated time to managing your business revenue and expenses. This frees up time for small business owners and helps them to refocus their time on running their business.
If you’re looking for expert financial guidance to help your business succeed, consider hiring a fractional CFO. Contact us today to learn how we can help drive your business forward. Schedule a free consultation HERE!
What is Capital Accounting Management?
We are an accounting and CFO firm dedicated to providing accounting & CFO services to small businesses. We are here to focus on your books so you can focus on running your business. Check out our services and get started with a free consultation!