Today we’re chatting money, honey. Whether you’re just aiming to cover the expenses your business incurs, or you have mounds of bills to pay each month, or you want to be ballin’ out of control, being on top of your finances is the key to success! Check out these simple tips for expense tracking for business owners.
Recently, a business owner asked me: “What is the best way to handle expense tracking for business owners that are always on the run? Or doing things on the fly (like ordering supplies)? Are there helpful apps?”
Hey, Kim (great name, BTW!)!
When it comes to business, keeping track of your money is SO important. Every penny counts, and when you start detailing where every cent goes, you’ll likely find some places you can cut back, which means more cha-ching in your pocket!
I won’t lie; I’m more of an old school paper and pen kind of gal myself. If I don’t write things down myself, it’s like they’re not real, so I do better when I’m detailing everything I bring in and spend on paper. I do transfer everything to the computer just as a backup. For my own purposes, I keep track of everything on paper and make it a point each month to go through and see what I could have done without, and what I can cut back on. I keep track of everything I do related to work, including my Starbucks runs that I often need just to get going in the morning.
Because I kept track of each time I hit the drive through, and how much I spent on my morning latte, it was clear that I was spending WAY too much money at Starbucks, and I was able to cut back and save some money. I also keep track of online subscriptions and how much I use them, plus how much they cost, so that I can determine if the investments are worthwhile.
When it comes to expense tracking for business owners, the most important thing is to be consistent with your bookkeeping efforts! I believe that most times, that’s the biggest challenge for most business owners. So, find a program you like, and then make a plan. Will you enter your receipts every time you get one? Once a week? Once a month? Decide what will work for you and then stick to it.
If you decide that on Mondays you will scan in your receipts, write it on your schedule. Get in the habit of inputting every single thing you spend right away. Eventually, it will become second nature!
There are five categories that you should pay close attention to, and be sure to keep receipts for:
- Meals and Entertainment
- Out of Town Business Travel
- Vehicle-Related Expenses
- Receipts for Gifts
- Home Office Receipts
Since you’re more technologically advanced than I am and want some electronic options, check out these handy apps made for on the go business owners:
This is a paid app, but it’s worth the $7 if you’re looking for an easy way to keep all your financial related info in one place. You can track expenses, mileage, input hours worked, customize categories, and generate expense reports. The app comes with great templates that your accountant will love you for using!
This is a free app that you can use to keep track of your business expenses and time worked. It can also be synched with your credit cards so that info can be pulled in automatically. You can generate expense reports and scan receipts, too!
This is a great site that allows you to do the same things as the apps above. You also can organize business cards with this program, so everything is in one place. (PS they also have an app!)
When it comes to bookkeeping, Quickbooks and Wave are great options!
Since we’re chatting about moolah, check out my tips for making tax time a breeze here!
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