Tips on How to Monitor Your Expenses
The success of any business venture depends on the management of funds.Many small businesses find it tricky accounting for expenses made within the month or year. In our discussion below, we have outlined some of the tips you can use in monitoring your expenditures.
Keep receipts
To begin with, ensure that you save all the receipts indicating transactions made within the business. The receipts are very important when it comes to documenting tax deductible expenses in case auditing at the end of the year. In addition, in order for you to avoid cases of missing cash, be timely in recording expenses. Preferably, you should do so on a daily or weekly basis.
Record petty expenses
The petty cash expenses are very tricky to account for. Therefore, having somewhere to record them will save you the pain of tracking large sums of money.
Maintain separate accounts for your business and personal funds
Furthermore, avoid keeping money belonging to the business with personal funds. It becomes tricky for you to tell whether you are making profits or losses when you are using one account for your business and other transactions within your home.
Use accounting software
You can acquire accounting software like quick books to help simplify the process of tracking as well as managing the daily expenses. Application of a similar program to that one used by your accountant will make the work very simple and quite accurate. Alternatively, you can use Microsoft offices spreadsheets templates for the same. Similarly, you can take advantage of mobile applications as well as the cloud-based solutions to help you in tracking your expense by categorizing them according to a particular order.
Shop with credit cards
It is good to apply for credit cards. Tracking your expenses is very simple when you use credit cards as opposed to liquid cash. With the development of technology, you can use cards to buy goods as low as $ 5. When you need to calculate your expense, all you have to do is to look for the credit report then you will be good to go.
Come up with weekly or monthly reports
Create weekly or monthly reports with the help of these applications. This will make it easier for you to come up with annual financial reports for your business ventures unlike when you choose to wait until a certain period of the year before you run up and down looking for receipts that you may not find. When the expenses seem to be going beyond your earnings, try to find a way of cutting on the same or else you business will end up failing.
Keep receipts
To begin with, ensure that you save all the receipts indicating transactions made within the business. The receipts are very important when it comes to documenting tax deductible expenses in case auditing at the end of the year. In addition, in order for you to avoid cases of missing cash, be timely in recording expenses. Preferably, you should do so on a daily or weekly basis.
Record petty expenses
The petty cash expenses are very tricky to account for. Therefore, having somewhere to record them will save you the pain of tracking large sums of money.
Maintain separate accounts for your business and personal funds
Furthermore, avoid keeping money belonging to the business with personal funds. It becomes tricky for you to tell whether you are making profits or losses when you are using one account for your business and other transactions within your home.
Use accounting software
You can acquire accounting software like quick books to help simplify the process of tracking as well as managing the daily expenses. Application of a similar program to that one used by your accountant will make the work very simple and quite accurate. Alternatively, you can use Microsoft offices spreadsheets templates for the same. Similarly, you can take advantage of mobile applications as well as the cloud-based solutions to help you in tracking your expense by categorizing them according to a particular order.
Shop with credit cards
It is good to apply for credit cards. Tracking your expenses is very simple when you use credit cards as opposed to liquid cash. With the development of technology, you can use cards to buy goods as low as $ 5. When you need to calculate your expense, all you have to do is to look for the credit report then you will be good to go.
Come up with weekly or monthly reports
Create weekly or monthly reports with the help of these applications. This will make it easier for you to come up with annual financial reports for your business ventures unlike when you choose to wait until a certain period of the year before you run up and down looking for receipts that you may not find. When the expenses seem to be going beyond your earnings, try to find a way of cutting on the same or else you business will end up failing.