Hello fellow entrepreneurs! As someone who has been running a business for quite some time now, I know just how important it is to keep track of our expenses. Whether you’re just starting out or have been in the game for a while, managing your finances is essential to the growth and success of your business. In this blog post, I will be sharing with you some dos and donts of keeping track of your business expenses.

Do: Keep Receipts and Record Everything 📝💸

One of the most important things you need to do when keeping track of your business expenses is to keep your receipts and records. This will help you keep track of your expenses and get a clear picture of where your money is going. A good idea is to get a dedicated folder or software to help you store and categorize your receipts.

A picture of a folder for storing receipts and records

Don’t: Wait Too Long to Record Your Expenses 🕰️🤯

One of the biggest mistakes entrepreneurs make is waiting too long to record their expenses. Trust me, it’s easy to forget all about that coffee you had with a client a few weeks ago. Waiting too long can lead to missed expenses, inaccurate records, and even tax issues down the line. So, make sure you record your expenses as soon as possible, whether it’s through a receipt scanner or manually entering them into a software.

A picture of a person looking at a pile of receipts with a frustrated expression

Do: Separate Your Personal and Business Expenses 💳🤝

It’s important to keep your personal and business expenses separate to avoid any confusion. This means getting a separate bank account and credit card for your business and only using it for business expenses. Not only will this make it easier to manage your finances, but it will also make tax time a lot less stressful.

A picture of a person holding two wallets, one labeled "personal" and the other "business"

Don’t: Overlook Small Expenses 🧾🔍

As an entrepreneur, it’s easy to overlook small expenses, thinking they won’t make much of a difference. However, those small purchases can add up quickly and have a big impact on your bottom line. So, make sure you keep track of everything, no matter how small it may seem.

A picture of a person looking at a receipt for a small purchase with a surprised expression

Do: Use Accounting Software 📈💻

Using accounting software can make tracking your expenses a lot easier and more efficient. Not only can it help you categorize your expenses, but it can also generate reports and give you a clear picture of your finances. There are many great accounting software options out there, so do your research and find one that works best for your business.

A picture of a person sitting at their computer using accounting software

Don’t: Rely solely on Cash Transactions 💰🙅‍♀️

While it may be more convenient to use cash for some purchases, relying solely on cash transactions can make it harder to keep track of your expenses. Unlike credit card transactions, there is no record of a cash purchase unless you keep the receipt. So, try to minimize your cash transactions and make sure you keep a record of them.

A picture of a person holding a wad of cash and a confused expression

Keeping track of your business expenses can seem overwhelming at first, but with the right tools and mindset, it can become second nature. Remember to keep your receipts and records, separate your personal and business expenses, and use accounting software to make things easier. Don’t let small expenses slip through the cracks, and avoid relying solely on cash transactions. Follow these dos and donts, and you’ll be well on your way to financial success! 💰👍

A picture of a person sitting at a desk with stacks of receipts and a calculator, with a big smile on their face