5 Easy Ways to Track Your Business Expenses

Managing daily business tasks is not easy. So keeping track of big and small expenses can take a toll on your business and employees. Manual solutions can help you only till a fixed time, but eventually, you will need to shift to software solutions. 

5 Easy Ways to Track Your Business Expenses

One such tool you can invest in and use is a good online invoice payment processing software. Not only will it help you keep your books in order, but it will also save the precious time of your employees. Besides, you will be able to calculate your cash assets, explore trends, and forecast financial projections. 

So investing in an expense management tool for small business owners is a must as it will give you a clear picture of all expenses, whether big or small. These tips will let you track your business expenses and stay on top of business demands. 

1. Digitize All Your Receipts

It can be overwhelming to sit down at tax time and see which receipt goes with which expense. You’ll save multiple headaches by digitally capturing and filing your receipts. Whenever you have any business expenses, take a picture of them so that you can account for them properly. You will need one to claim expenses. Also, if you ever get audited, you will have clean digital records.

2. Keep Your Expenses in One Place

When you use expense tracking software, you can segregate your transactions and expenses. This lets you generate reports and have a clear picture of your finances at all times. Make sure you categorize your expenses and add all information about your transactions. If you took a client out to lunch, make sure you add that too. 

 3. Have A Separate Business Account 

Tracking and categorizing your expenses is much simpler if you have a separate business bank account. Make sure you use separate accounts and also cards for your expenses. Also, keep separate credit cards too. This way, you will never face issues and never miss out on any payments. 

4. Consider Connecting Your Accounts With Expense Tracking Software

You should ideally connect your bank account with expense tracking software to keep finances in order. This way, your transactions can get imported automatically. Also, you will never miss out on a transaction, provided you use a separate account for business expenses. 

All your new expenses will show up under the transaction column in your software. You can then choose to categorize them and even link to their corresponding receipts. This will minimize the time you spend on bookkeeping and make sure nothing gets looked over. 

5. Regularly Analyze Your Business Expenses 

When you have a solid expense management tool for small business owners in place, you will be able to review your expenses and categorize your transactions with ease. 

Develop the habit of reviewing your expenses regularly, checking your reports regularly to get a hold of your expenses. Even if you come across something you are not sure how to segregate, don’t take stress. 

All you need to do is make a note and address it when you do your books. This way, you will be able to gauge your spending and if your business is making any profits or not. 

6. Tally Your Expense With Other Industries 

Often bureaus provide data by region, state, and industry to help all businesses assess if they are making the right expenses or not. If your expenses regularly cross the threshold, you will need to consider reevaluating your expenses. A good expense tracking software will help you cut down unnecessary expenses.  

7. Check Out Loan Forgiveness Options 

Many small businesses are eligible to receive Paycheck Protection Program (PPP) loans to cover economic slowdowns. If the debt was used to cover business expenses, the chances are that you will not need to pay that amount. These expenses include rent and leases, utilities, payroll, and other costs. 

Wrapping Up 

So, this is how expense tracking software can help you stay on top of expense management and build a profitable business. A good expense management tool for business owners will save you 100’s of hours each month, and you can use it for addressing other issues that need human intervention. So, don’t wait further and invest in one today to make expense management seamless.