In a previous article, I talked about why it’s important to track all of your business expenses. But of course, knowing that isn’t enough. You also would want to do it yourself.
So to help you out with that, here are three quick tips for tracking down all of those expenditures you make to run your small business in the UK.
1. Keep all invoices
Documentation is very important. And the foremost piece of evidence you can have to prove a transaction is the invoice. Sometimes, people call them receipts. In any case, it’s a record of what product or service you bought, its price, when you bought it, and the mode of payment. Always keep them in a safe place, and have backups of them as well – photocopies or scans.
2. Create a spreadsheet
This is probably the most common way to keep track of your business expenses. And it’s a great way to organise them too. The good thing about a spreadsheet is data management – you can move the numbers around, in ascending or descending order, by date, by amount, or whatever you need. It’s a great way to find out which expenses are eating up your budget, as well as indicating if the business is earning profit or not.
Updating the spreadsheet daily is good practise. If you let the expenses pile up for a week or more, you’re more likely to forget things, and that won’t be good for accounting purposes later on.
3. Use a budgeting app
Apps like PocketGuard, Wally, and LevelMoney (all free for both Android and iOS) can certainly be a big helping hand in tracking business expenses. This way, wherever you may be, you can quite easily input any expense you make right after you pay for it. No more forgetting any transaction, because you always have your phone with you. Some of these apps also allow you to categorise expenses – e.g. internet bills, subscriptions to cloud services, transportation costs, etc. In addition, they also have sync features, so that your data is always backed up to the cloud. No need to worry if you lose your phone or it breaks down; you can always recover the data later on.
With modern technology to help you out, tracking your business expenses should not be much of a chore. When your business’ finances are in good hands, you can better plan ways on how to earn more and grow the business.
Are you into Greyhound racing? Then watch out for the opening of:
Visit http://twotrap.co.uk for more information. Don’t miss it!
And if you like to keep on learning, wouldn’t it be great to get regular updates in your inbox, so you won’t miss anything? So if you haven’t done so already, apply for our small business tips newsletter. Leave your details on that page and I’ll send you my free report, “Online Business Ideas”.
Thanks and remember: Commit To Success! We are part of your team!