Staying on top of your expenses can be difficult when you are just trying to focus on your work and general duties. This is especially the case if you feel as though things have grown into a big unmanageable mess. If you want to turn things around, then this guide to managing your day-to-day business expenses is for you.
What Are Expenses?
Expenses are your business costs. Common examples of expenses are salaries, cost of goods sold, rent and even your business taxes. It can also include the train ticket that you bought for a business trip even when you paid it using your credit card. You can also include expenses such as the stamps that you bought at the post office but paid with your own money. It is vital that you document expenses like this because if you do not, then you may find that things end up getting out of hand quickly, and this is the last thing that you need. If you need financial advice, check out https://medium.com/@kevincanterburyaz.
Store your Receipts Online
You may be surprised to know this, but you do not have to keep a huge folder of receipts. You can store any receipts that you do have electronically, and as long as your copy has everything on the back of the receipt as well as the front, you should not have any issues. If you want you can even invest in a digital storage application, so keep that in mind. It is also very possible for you to upload your receipts to some kind of accounting system so that you can then attach them to your entries.
Keep your Expenses Separate
When you are recording your expenses, it is vital that you separate your personal expenses from your business expenses even when you pay the former using your business bank account. If you ended up putting a train ticket for a personal trip on your business bankcard rather than your own personal credit card, you must not classify this as a business expense. This may well sound like a ton of extra hassle that you just do not need, but it is essential. If your records are investigated or inspected, then it can make all the difference.
Make Consistent Categories
It is very hard for your business to make any kind of informed decisions if you do not consistently monitor your costs. You have to do this according to categories. If you can document the amount that your business is spending on fuel for example, then this will make it easier for you to swap for a more economically friendly form of transport that may be more budget-friendly. If you can do this, then you can save yourself money while also being able to document everything you like, so make sure that you keep that in mind if you can.
There are many things that you can do to try to keep your business expenses down, but you can’t do this if you have no idea what you are spending money on. By following this guide to managing your day-to-day business expenses, you can be sure to make a positive change.