How To Keep Track Of Your Company Expenses

How To Keep Track Of Your Company Expenses

How To Keep Track Of Your Company Expenses

Company expenses are often filled with surprises. They can be under-evaluated, highly overestimated, or completely mismanaged. None of these things are good for the survival of any business.

To make sure your business survives, there must be good practices in place to track company expenses. This guide will show some of these practices and how they work together.

Open a Company Expenses Bank Account

Small business owners often run into the problem of determining what expense is a personal or business expense. Giving this definition to every transaction is incredibly important, as it’s legally required to do so for all businesses.

Expenses that are strictly used for business should be tracked in a separate banking account. Not only does this help incredibly during tax season, but it also allows for immediate knowledge of the expense, as it’s applied to your company’s cash assets in the bank account.

Use Accounting Software

Several popular choices of accounting software allow for integration with your bank account. This integration notes transactions into the accounting program, well before tax season. With importing, there’ll be no surprises to worry about.

Digitize Paper Receipts

Paper receipts are often problematic to keep around, as they can pile up, be lost, or go unnoticed. Paper receipts (unfortunately) allow for expenses to build up and for potential tax problems to arise.

Accounting software can alleviate this problem by digitizing receipts. They store receipts on the cloud, making sure that expenses are never lost.

Limit Daily Expenses

Daily expenses often go unnoticed. They’re not as impactful as acquiring assets or paying rent but can add up quickly if they’re not controlled. 

Keeping daily expenses to a minimum will prevent businesses from going over budget. Any transaction made should be tracked to a bank account or accounting program immediately.

Use Virtual Debit Cards

Modern tools have allowed for a wide variety of ways to monitor expenses, but virtual debit cards seem to provide the best out of all of them.

Virtual debit cards are different from regular debit cards in that they aren’t directly connected to a bank account. Many virtual cards can be created, used, and canceled as needed.

Using a virtual card allows a business to separate overhead expenses from other expenses. Virtual cards can be used for travel expenses, subscriptions, daily expenses, one-off payments, and many more types of expenses. If you’re interested, you can get virtual debit cards here.

Embrace the Right Financial Practices

Tracking company expenses can be a challenge for any small business owner, but it doesn’t have to be. With the right financial tools, such as accounting software and bank cards, it’s easy to keep an eye on where company money is going. With a clear picture of your expenses, you’ll be in a better position to help your company cut costs.

If you found good use in this guide, check out other articles in our business category.