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6 Tips for Managing Small Business Expenses

6 Tips for Managing Small Business Expenses


In this article, I will be talking about six tips for small business expense tracking. So if an employee can't track their time or their assignments, that's a management problem and a supervisor should step, However, if you can't monitor your money in a tiny firm, it's more of a basic problem, and you really want to be sure, especially in small enterprises.

You can keep account of all the money that's going through, small businesses actually make up 54% of all sales revenue in the U.S.

So that's a lot of money that needs to be accounted for and organized and managing your business's expenses properly can assist in increasing profitability and growing your business.

Now the first tip may seem obvious, but it still needs to be said you wanna separate your personal and business expenses. having a separate business account and a separate business card will make sure that you can track those expenses properly, and it could also keep you out of trouble with the IRS.

The second tip:  is to save those receipts, so make sure you're storing them properly, and you're really organized because you're gonna need them later on down the line.

whenever you're doing your taxes, or if by chance you get audited by the IRS, one way you could do that is manually put them in envelopes.

You can write the date and also what the purpose was for them, and, of course, but those in an accordion file and keep them all organized.

- Okay, Grandpa or you can store all of those receipts digitally on your phone, so what I like to do is actually take photos of the receipts, and then I create a folder in my phone for those receipts. So then they're all right there whenever you need them, or you can use certain apps for scanners to actually scan those receipts and keep a folder with them all.

 Sure, whippersnapper, I do know about some of these apps.

For instance, for Android, there is Mobile Scanner Lite that you can use.

The third tip: is to record it right at the point of contact.

If you're anything like me, you wanna get it out of your hair as soon as possible. So instead of keeping it off to the side.

where you may forget about it over time, do it right then and there.

Our next tip is just to use accounting software, I mean, sure, yes it's an investment, but it also is gonna make things a lot easier to really track and handle all of those expenses. And so whenever you're first starting out testing the market, you may be using just Excel to track those finances, but once things start getting more complicated you realize you need something a little bit more than that, and it may be good to invest in applications like QuickBooks or FreshBooks and it can give you more functionally.

There's no reason to skimp on technology that can help you stay organized and grow your business.

And for tip number five: if you wanna track your performance regularly, you can use these same accounting applications to come up with weekly or monthly reports so that you can stay on top of where things are going. I like to always say documentation beats speculation any day of the week.

Rather than thinking that your business is just doing fine, you wanna know how well it's doing.

Keeping track of all of your finances can feel really overwhelming or get really complicated. So if just seems like too much to handle, outsource. Hire a bookkeeper to handle all of that stuff every single month for you.

And some of the sites that you can find these bookkeepers on are Fiverr, Upwork, and Guru. They are easy to find these freelancers that you'll be able to get some of that off of your plate, And definitely worth the cost if you're not gonna get audited by the IRS.

Now disclaimer, you don't wanna take any of this as legal or tax advice, you always want to consult an attorney or tax professional. when considering your own legal or tax situation.

All right, well you just learned six small business tips for expense tracking.

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