Failing to accurately track your business’s expenses can leave you with an unrealistic view of how things are going. To get a better understanding of how well your business is running you need to learn how to track business expenses correctly.
If you’re not sure how to go about this, we’ve got you covered. In this article, we’ll go over 10 helpful tips to improve your business expense tracking.
1. Separate Your Bank Accounts
The first step to having the best business expense system is creating a bank account specifically for your business. If you have to separate your personal and business expenses every month it’s going to make things much more difficult.
2. Know Business Expenses
Even with a separate bank account, it can be confusing to know what to record as a business expense vs. personal. Learning that you can count things like bank fees, mileage, and software costs will help you in the long run.
3. Choose an Accounting System
Decide whether to hire someone to do your accounting or to use a software program and keep track of expenses yourself. It’s wise to leave it to the professionals but if you’re on a tight budget you can find an accounting software system that works for you.
4. Connect Your Bank to Accounting System
Once you’ve decided on an accounting system and opened a business bank account you’ll want to connect the two. This will make tracking expenses so much simpler as they’ll be recorded immediately.
5. Track Receipts
Keep your receipts! Even after you record each business expense, you should still store every receipt. Choose a storage system that works for you and will make it easy to remember.
6. Use a Receipt Scanner
One way to make receipt storage much easier is to do it digitally. A receipt scanner can record your receipts and keep them in one system making it easier to find them when you need them.
7. Record Transactions Right Away
It can be tempting to put off business expense tracking until later but you’ll want to record transactions immediately. If you’ve linked your bank account to your accounting system this should be easy.
8. Keep Software Compatible
If you decide to use accounting software to keep track of business expenses, you’ll want to make sure that the software is compatible with all of your business running software. This simply makes things run more smoothly for you.
9. Review on a Regular Basis
It’s important to regularly take the time to review all business expenses. This will allow you to ensure they are categorized correctly and make planning for the future easier.
10. Hire Professionals
The best business expense trackers are professionals. Hiring accounting and technology experts takes all the pressure off of you, allowing you to focus on the day-to-day aspects of your business.
How to Track Business Expenses
Learning how to track business expenses will let you see the big picture and allow you to plan for the future. Keeping track of these costs in the right way will give you peace of mind as well as the clarity to make big decisions.
If you’re ready to take the next step, get in touch with us today. We’ll show you how we can take your business to the next level.
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