Tracking your business expenses regularly can save you hours of time later. After all, no one wants to dig through piles and piles of receipts every time they sit down to balance their accounts. The good news is, tracking your business expenses is really easy once you choose a system and stick to it.
If you haven’t already, you should open business accounts that are separate from your personal accounts. This way you know that all of the money coming from your account is for business expenses. Also, it’s easier to track your expenses when you pay for business-related items using a debit or credit card. If you lose the receipt, you still have a record of the transaction. You can use an app to capture images of your business receipts using your smartphone. Apps like this typically require you to take a picture of the receipt. Then, they let you use keywords or tags to organise the receipts you have. For example, if you take a picture of a dinner receipt, you might save it in your phone under “entertainment.”
Keeping your receipts is only part of tracking your business expenses. It’s also important to record these transactions in your books. Consider putting aside 15 to 20 minutes each week to enter transactions in your records. This way your business account information is always up to date. To make the process easier, consider using cloud-based accounting software, such as QuickBooks, to balance your accounts. When you use cloud-based accounting software and keep it current, it’s easy to review your business finances whenever needed.