3 Steps for Tracking Your Business Monthly Expenses
Monthly business expenses can be a big burden for small ventures. The biggest question is how to calculate business expenses without burninga hole in your pocket.Business expense tracking using a time tracking software can be your savior.
If you are running a small business without an operating expenses calculator, you are doing something wrong. Business expense tracking is the fundamental step of running a profitable business. The splurge on monthly business expenses can be quite draining.
We have compiled five steps for tracking your business monthly expenses that canlower your monthly costs.
Organize your monthly business expenses
You can save your money by organizing the expenditure. Having an organized expense report will give you an insight and clarity about your monthly costs. Your monthly business expense can be categorized into variable and fixed expenses. In terms of variable expenses, there are things that might not add as much value to your business as they do to your monthly business expense. You will find many morning bagels in your variable expenses that you can do without. The trick is to be absolutely sure about your team’s requirements. With fixed expenses, things are less likely to be modified. These are your utilities, debt, rent etc. There are many ways to organize your monthly business expenses:
• Hire a bookkeeper or better, a Certified Public Accountant
• Make spreadsheets with date, cost, category, and purpose.
• Digitize your receipts
Calculate business expenses
With an organized business expense report, you can easily calculate your business expenses. It will give you a concrete picture. Doing this categorically can give you a bird’s eyes view of the spendingpattern. The money habits of your business can provide you with great insight. It will also enableyou to get a sense of your cash flow. Calculate your business expenses, to the tee. Don’t leave out any aspect of your business expense. With receipts in hand, and an organized spread sheet you can simplify this process to a great extent. You can use a business expense calculator like CloudBooks for this. A lot of new businesses choose single-entry bookkeeping system for convenience. But as you grow, this system can prove be a faulty method to work with. Using an operating business calculator will make things easier for you to switch to double entry.
Also Read: Everything You Need to Know about Tracking the Money Trail
Use a Time Tracking Software to record Expenses
Recording your business expenses puts you in control and saves you from unnecessary losses. Accountants and bookkeepers do this job well, but they are expensive and aren’t as efficient. This is why, it is highly recommended that you use a time tracking software. As a small business, it seems unfair to have your employees punch their work. But, it is important that you have an efficient system of invoicing for fair practice. Using a time tracking software will simplify project management, and you will be able to generate invoices timely. A time tracking software will actually even help your employees to generate billable hours down to the last minute. Since, this is an unavoidable and a recurring expense, accuracy matters a lot. At just $20 a month you can subscribe to the CloudBooks Time Tracking Software (agency level) to do this. It also comes with a 30-day free trial and a premium 24/7 dedicated support. More than employees, recording expenses via time tracking can be a great help to client billings. An automated software with ease of access, automatically notifies you of due payments.
Also Read: 10 Tips for Small Businesses to Track Their Expenses
