Tracking Expenses – Small Business Development 2 of 6
Tracking expenses is a very important part of managing and developing your small business. There are many ways to track expenses. It is also very helpful to track your large expenses in real time with a cash flow tool.
How To Track Expenses
There isn’t necessarily a wrong way to track expenses. There are several ways to go about it. Here are just a few:
- Using an app on your smartphone
- Tracking them in real time in accounting software, such as Quickbooks
- A “cash-flow” tool, such as an Excel Document specific to your industry
Your first priority is to decide what works best for you. It often depends on who in your company is spending the money. If it is only you, it is easier to track. If multiple people are spending money in your small business. you will need a platform that allows multiple users.
Why Does Tracking Expenses Matter?
Hopefully, your business is bringing in more than it spends (right?!?) However, it could be that at the end of your month, even when you have done well, you are still breaking even. Whatever is the case for you, tracking expenses is vital. It allows you to know where you are at (income), make goals for where you want to be (projections) and also, how to get there (reality). If you do not track your expenses, you don’t know where you are at. If you don’t know where you are at, you are lost.
In closing, tracking expenses is vital to the financial health of your business. Like many other initiatives it is often lost in the execution. The most important thing is that you do them. We are here to serve and we want to meet you where you are. We would love to help you with every aspect of your accounting!
