Once a business is up and running, it’s so easy to be so caught up with it that we forget how to best track business expenses. Instead, we’re immersed in everything that needs to be done to keep a running endeavor, and we quickly get lost in other duties. That might not make too much sense, but it’s real!
We’re so excited about launching that about which we’re so passionate, and our to-do list simply keeps growing away from our multiple duties! Don’t have time to pay devoted and close attention to the nitty-gritty of finances? Here’s how to most ideally track startup expenses.
The power of small actions
Be free of worry on the financial side with your subscriptions. First, know that many small actions can help. Here are some of them, along with basic information on keeping track of business expenses to make our corporate lives easier. And keep our startups on the best path.
What are business expenses?
When we refer to business expenses, we are talking about basically anything that has to do with the everyday running of a company. It is vital to understand business expenses. These need to be considered for tax purposes, for example. In some cases, especially for small businesses starting out, it can be hard to discern between relevant personal expenses and actual business ones.
List business costs for items that directly affect your operations. That means your rental space if you’re leasing an office, the service bills to that space, anything you need to make or build a product, salaries, and more. These are all tangible or intangible aspects of conducting whatever it is you need to run your startup. It doesn’t account for the breakfast that morning when we couldn’t let go of a task, or the business would fail. But it does include the legal advice we needed to get a specific contract out of the way so we could keep operating. We hope that makes business expenses a bit clearer.
How to do accounting for a small business?
If you are just starting out or thinking about starting a business, here are a few items you should know in terms of startup accounting. A few of those include opening a bank account, developing a bookkeeping system, and doing research to properly file taxes. You’ll probably need to apply for different types of funding. And, of course, a significant portion of our accounting needs include keeping track of expenses.
Expense tracking is actually the foundation of a big part of the accounting process for a company. It’s essential for bookkeeping, financial statements, tax returns, deductible expenses, and other filings.
Regularly reassess your methods.
As your business evolves, many aspects of it will change. Hopefully, your numbers will continuously grow, too. Yet, that means finances will get more complicated as you go. So, continually reevaluate the way you’re going around your internal process, accounting especially.
Tips for tracking business expenses.
The first tip we have for you to digitize all your receipts. It might sound obvious as we don’t want more paper than we need nowadays. Almost everything is going digital for evident reasons, too! But it’s still important to remember to do this and send a pointer out to everyone on it. This is a key part of keeping excellent order in the short and long-term regarding business finances.
Our second tip is to get software that helps you organize that information out of a single place. Of course, we have valuable information on choices for you that we’ll share further down below.
Also, as a third suggestion, work hard on keeping your business and personal expenses separate. Divide those accounts even as a founder. This can be hard to achieve at the beginning. But keeping costs on a corporate tab will help everyone, especially the owner of those personal accounts, in the long run. It’s better to start on that foot right off the bat, too. Or at least as soon as possible.
It’s also a great idea to keep a spreadsheet. In it, detail every main expense. The best option here is, again, to use expense tracking software. Really! That way, we can also ensure we’re not missing out on anything, either.
Remember how we said we can help with software options? How about a detailed list of the best software out there to keep your eye on business expenses? We’re moving on to that now.
Best software to track expenses
What a great option to manage all of your SaaS subscriptions! Recurring makes it easier to deal with all of the tedious work of remembering the many services we’re paying and making sure we do that right on time. It’s also a tool that gives smart recommendations, which can quickly start saving us valuable money!
As great software for small businesses, Mint helps with budgets and goals on a simple and user-friendly interface. The tool lets you set up reminders for important aspects like specific bills, the corresponding dates, and relevant purchases.
Yep! This is not only a cheap option; it’s also an oldie but a goodie. Excel is the most accessible tool you can think of to track business expenses. Of course, we can relate our needs to a simple spreadsheet. And we can give it all of the main categories we need, the shape and look we want, etc. Yet, we need to manually update our files every time a new charge comes in. And we need to set up most of it, too. But we can also help ourselves out with one of the many templates for it if we’d like some advantage or are unsure as to where to begin.
Take pictures and effortlessly save receipts to your cloud with this tool. In some cases, receipts can even be uploaded automatically into Expensify’s system. The platform integrated a currency system for users to stop doing conversions outside of the master app. A downside is that the tool doesn’t come with a balance tracker.
We hope this information has been of help. If you’re ready to try our first suggestion of the best expense tracking software, give Recurring a try now.