How to Save Money by Tracking Expenses for Your Small Business

One of the most cumbersome tasks as a small business owner is keeping tracking expenses for your small business.

You’ve got a million things you’re already juggling as a female business owner. You’re marketing, providing high-quality service to your clients (or selling high-quality products), and you’re taking care of your kids and trying to be a present mom, too. I know you don’t want to add one more thing to your plate, but hear me out when I saythis is worth it.

While it might feel like a hassle, tracking expenses for your small business is actually one of the easiest ways to make sure you keep more of your hard-earned money.

Why Tracking Expenses in Your Small Business Saves You Money

When you track your expenses at least monthly, you can make informed business decisions based on your financial data. This is how you know how much cash you have coming in each month, what fixed expenses you’re committed to and so on. Without having this information at your fingertips, you can’t make data driven decisions that will move the needle forward in your business.

Plus, when you know your expenses, that means you can deduct all eligible business expenses from your taxes, which lowers your taxable income — and that means you pay less in taxes!

Finally, tracking expenses in your small business saves you stress, because everything will be in one place come tax time.

Here’s how you can do it quickly and without stress:

Tracking Expenses in Your Small Business in 2 Easy Steps

1. Plan to Track Throughout the Year

The key is to track every business expense throughout the year (which usually goes awry if you pay for things on different cards) – from Amazon office supplies to that cup of coffee you bought during a meeting – every dollar adds up to help you save.

Set the expectation now that you’re going to track your expenses all year long, and make it easy on yourself by putting your expenses on one card.

2. Decide How Often & Where You’ll Track

The trick is to make a habit of recording expenses on a weekly or monthly basis, so you don’t forget anything at the end of the year. Apps like QuickBooks, Wave, Xero, Expensify, etc. can help you stay organized, which will save you time (and stress) when tax season rolls around.

While some of these (like Wave) offer free options, you may not be ready to commit to a monthly subscription period. In that case, using something like our Profit & Loss Tracker is more than sufficient.

But honestly, you don’t need fancy software to get started. Depending on the volume of transactions you have in a month, a simple Google spreadsheet can help you track your income and expenses. The key here is to stay consistent and up-to-date.

You Need to Know Your Numbers

If you don’t have an accurate picture of your business expenses, then there’s no way you can make educated financial decisions about your business. You are worthy of having the financial education and of havingallthe information you need to make good choices for your business.

You don’t have to feel like taxes and money are scary. You’ve got this, and we’re here to help you along the way!

Work with a CPA Who Educates and Empowers You

It’s time to end the stereotype that only the men handle the money.

The truth is that youarecapable of understanding your business finances and taxes — and you’re worthy of a CPA who takes the time to explain it to you.

Does your CPA educate you? Or do you dread calls with your CPA because they condescend to you, make you feel stupid, or don’t really answer all of your questions? So many of our clients have had this experience (especially with male CPAs) and it’s unacceptable. Coming from public accounting with many male CPAs, I totally get it.

Some of our favorite feedback from our clients is that they’re excited to get on calls with us — because they come away feeling like they learned something, and they feel empowered to make smart finances decisions in their small business.

If you’re looking for a CPA who educates and empowers their client, watch our free training video to teach you what to look for— or book a call with us here!

Disclaimer:This article is not meant to be tax advice. This is not an all-inclusive list of business advice. Different rules may apply to each individual taxpayer’s specific situation. Please consult with your accountant. May contain affiliate links.