For small businesses, keeping track of expenditures is vital. At the end of each day, month, or quarter, it’s important that you’re able to see everything you spent money on. And when it comes to tax time, you’ll need this information for potential write-offs or tax breaks. It can take some practice, learning how to keep business and personal expenses separate, and also to keep record of what you’re spending. Whether you do your own bookkeeping, or you’re working with a qualified Fort Collins CPA, you’ll want to get into the habit of tracking your receipts!
If you want to keep your business finances clean and simple, and stay on top of them all year round, here are a few tips to keep in mind:
1. Separate personal and business
It sounds like a no-brainer, but too many people let these two mix, especially early on. It’s tempting to let the smaller expenses slip by, like gas/fuel, a coffee meeting, or some office supplies, but this can be a slippery slope. One of the first things you need to do as a small business owner is set up a separate business account. Make sure you route your business income here, and have payment options set up for your expenses.
2. Ask for emailed receipts
More and more retailers nowadays are offering receipts by email or text. Always accept this opportunity when you can- it’s much easier to keep track of expenses by email than it is to hold on to physical slips of paper. Text receipts are great as well, just make sure you save them somehow. For both avenues, ensure these are set up to go to your business phone and email address.
3. Scan and file
You likely work with a variety of different clients, suppliers, and vendors, so you likely have multiple streams of receipts to keep track of. No matter what your unique situation is, make sure you have a filing system that works for you. File receipts by month and/or by client, and also consider digitizing your receipts if you haven’t already. There are great scanners and apps nowadays that can help you do this.
Need help managing your business accounting? Get in touch with us at S.J. Wick & Associates today to learn more.