Brittney Castro, CFP® at Perennial Financial Services (http://perennialfinancialservices.com/), shares several important tools for tracking your business expenses. These tools will help small businesses manage their finances and keep a tight budget.
- Software: Quicken, QuickBooks
- Provides automatic account tracking
- Online resources: bank website, Mint.com
- Frequently check statements
- Hire a professional book keeper or certified accountant
As a business owner, one of the main advantages you have is you can deduct a lot of your business expenses. However, you want to make sure you a system in place to know what those business expenses are. So you can use software that you would install on your computer, log into a software like, you know, that will include Quicken or QuickBooks. These are really popular for business owners. And really, these types of systems track all your business systems, you know, you put in your credit card information or you put in your account information and it does it automatically for you and it categorizes your expenses, based on that expenses.
Or you can choose to use some sort of online resource. A lot of banks now offer tracking so you can set up your bank account to make sure that it's tracking your business expenses. Or even like a system like mint.com, which does it for you. And you know, with online resources, you just want to make sure that you're checking in on it on a regular basis so it does categorize your expenses into the right category.
And then last, another option would be just option would be just hiring a bookkeeper or working with an accountant who would do all these for you. So really, you're king of offloading a lot of the work to them and they're probably doing it for you on a weekly basis, monthly basis, quarterly basis, whatever your business needs are and they're going to be the ones who are and they're going to be the ones are who are more responsible for it.
Whatever option you choose, you know, there are opposing cons of each option. You can choose just to go straight with online resources and do that yourself or you might want to use a combination of that. Maybe you want to track your expenses and also have the bookkeeper to confirm everything for you.
So again, every business is different. You're going to want something that's best for you and the type of business that you have.