How to Keep Track of Your Business Receipts
While it’s admittedly not for everyone, running a small business has advantages. You’re your own boss which means you set your own hours and run your business the way you want, and you never have to ask for time off. There are a couple of downsides though, and one of them is keeping track of your business expenses and receipts. In this article, we’ll cover why it’s essential to keep track of your receipts and a few methods to keep track of them.
Why Keep Track Of Your Business Receipts
Let’s face it: Nobody wants to keep slips of paper around just for fun, much less search for and sort through them. Not only does tracking and organizing your business receipts help you increase profitability by managing your expenses, but it makes tax time a lot easier since many expenses can be claimed as tax deductions. The following are a few ways to keep track of your business receipts.
Method One: Business Finance Accounts
As a small business owner or freelancer it can be easy to blur the line between business and personal finances; to the point of using your personal credit card or checking account for business purposes. To create a firm boundary between your business and personal finances, open completely separate business credit card, savings, and checking accounts to use for all your business expenses.
Method Two: Cloud Accounting Software
There are a few downsides to only accessing your business information from one physical or central location. What if you need to pull up some information to show someone when you’re away from the office or home? What if the power goes out, but you still need to finish inputting business expenses? With cloud accounting software, you can access your accounting data from anywhere and keep up with your bookkeeping as needed.
Create A Spreadsheet
If you’re just starting out and want a low-tech way of tracking your expenses, or if you just love spreadsheets, then this method is for you. The main downside of tracking business expenses with a spreadsheet is that you have to track every expense manually. Another issue you might run into is if you make a mistake in adding or subtracting or other cell formulas, and then it’s your responsibility to track down the error and fix it, because the program won’t do it for you.
The easiest way to keep track of your accounting is by letting a professional do it for you. With our accounting services, you’re free to spend more time and energy on other areas of your business. We scale our services by your specific goals and needs. Managing your own accounting is simply an added stress you don’t need when focusing on your business.
Taurus CPA Solutions is equipped to service businesses of all industries regardless of size, financial needs, and revenue. We tailor our services to each business’s needs and demands and invest the time and resources to learn and identify your goals and challenges. Contact us today if you’re looking for a different way to keep track of your business receipts.