How to Better Keep Track of Small Business Expenses in the New Year

Keeping track of small business expenses is no easy task. In fact, it’s one of the least liked chores or responsibilities that come with running a business of any size. And, it’s little wonder why. After all, these various costs range greatly in amount and frequency, making them very difficult to keep straight. Plus, when more than one person is spending money on such expenses, it complicates the matter even more. Fortunately, there are ways to keep better track of your small business expenses.

Business Expenses vs Personal Expenses

According to the IRS, a business expense is something “ordinary and necessary” – expenses that are commonplace in your trade or profession and which are helpful for your business. While that’s a very broad definition, most people understand in order to qualify, expenses have to directly relate to the operation of a business. (Of course, there are instances where it’s necessary to rely on the advice of an experienced accountant and/or tax professional to determine which expenses are and which aren’t “ordinary and necessary.”)
Handling business finances is often one of the least favorite parts of running a small business. Having a firm grasp on your cash flow, knowing what’s tax deductible and what’s not, understanding what you spent each quarter; it all translates into a more positive and less stressful experience at tax time. You might be dreading that expense tracking is going to be a thorn in your side. But with knowledge comes power. Understanding how to properly track expenses will help ease the pain. —Inc.com
Obviously, personal use disqualifies purchases from being classified as business expenses. Unfortunately, some businesses take the risk of trying to write off expenses that don’t truly qualify. And, it’s a big risk because it could very well cost a lot more in the end than it’s worth in the short-term. So, it’s critical to keep track of those genuine business expenses.

How to Better Keep Track of Small Business Expenses

In order to better keep track of small business expenses, you’ve got to get into certain habits and use the right tools. Here are three ways to keep track of your business expenses in the new year:
  • Use only corporate accounts. This is one of the easiest ways to keep track of your business’ expenses. Use only business credit cards or debit cards and you’ll have all those transactions in one place for quick reference. What’s more, it makes accounting for all your purchases a lot less complicated and simpler to find when needed.
  • Run cloud accounting software. Approximately 9 out of 10 small businesses already use some form of cloud accounting software. While that’s a great way to help keep track of expenses, if it isn’t used properly, it won’t be an effective tool. Get in the habit of going over the program on a regular basis so you’re familiar with how it works. This way, when you need to pinpoint something, it won’t be a big deal.
  • Store all your business receipts. Here’s where too many businesses go wrong — they don’t store all their expense receipts in an orderly manner. Remember, not all your transactions will have a digital trail, so it’s very important to keep paper receipts.
  • Recently, I asked my accountant for some app solutions he would recommend for one of our clients, and is his recommendation; If you want basic functionality you can use Scan Manager build right into QuickBooks Desktop versions. In QuickBooks online there is a new “receipts” application located from the “banking” menu choice. You can scan/upload anything and link it to a job/invoice/bill, etc. The online version supports smart phone uploads. For something more sophisticated, Expensify is popular. It has good functionality to support field staff and ties into QuickBooks well. It is relatively inexpensive at $5.00 per remote user per month, plus $ 9.00 per month for admin users. You can get more details from the app menus.
  • What other suggestions do you have to help keep track of business expenses? Please share your thoughts and experiences; your comments could help others better run their businesses! Interested in learning more about business? Then just visit Waters Business Consulting Group.

    Like this article?

    Share on Facebook
    Share on Twitter
    Share on Linkdin
    Share on Pinterest

    Related Posts

    2CT Media photo

    How Visual Graphx Turned a Partner Split Into a $4.5M Fleet-Branding Powerhouse

    .elementor-widget-text-editor{font-family:var( –e-global-typography-text-font-family ), Sans-serif;font-weight:var( –e-global-typography-text-font-weight );color:var( –e-global-color-text );}.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:var( –e-global-color-primary );}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap, .elementor-widget-text-editor.elementor-drop-cap-view-default .elementor-drop-cap{color:var( –e-global-color-primary );border-color:var( –e-global-color-primary );} Family businesses run into a particular kind of growing pain when the next generation takes over: two people can share a bloodline and a company and still see completely different paths forward. That was the situation at what was then called 2CT Media, a large-format printing and visual branding shop built by a family patriarch and later run by his two sons. Two Brothers, Two Different Visions The company specialized in banners, decals, stickers, signage, and vehicle wraps for local and commercial clients, and it had real technical strength and healthy margins to show for it. But by the time Waters Business Consulting Group was engaged in January 2021, the brothers running it were pulling in different directions. One was focused on strategic growth, investment, and long-term direction; the other was heads-down on day-to-day operations. Neither position was wrong, but the imbalance created ongoing tension around who had authority over what, and it was starting to hold the business back. Underneath that leadership friction sat a set of operational gaps that made things worse: installation and job-completion standards weren’t documented, employee expectations around schedules and accountability were inconsistent, sales activity had little visibility, and compensation and commission structures were creating internal friction rather than motivation. The company was also carrying a fair amount of product and client concentration, which limited how much it could scale even if the leadership issues got resolved. Resolving Ownership First, Then Building for Growth Waters Business Consulting Group started where the real bottleneck was: ownership. That meant facilitating structured alignment discussions between the brothers, then supporting a valuation analysis and guiding a full buyout process so one clear leader emerged with unambiguous authority. With that resolved, attention turned to the business itself — analyzing product and client concentration to find where the higher-margin growth actually lived. That analysis pointed toward fleet-based vehicle wrap clients as the biggest opportunity, and the team helped leadership build a national fleet strategy around it, including recurring wrap-replacement cycles that could turn one-time jobs into repeat revenue. On the operational side, Waters Business Consulting Group provided guidance on performance standards and accountability, implemented sales tracking and workflow visibility tools, and supported leadership through the operational transition and delegation that naturally follows a buyout. From Local Shop to National Fleet Player The strategic bet on fleet vehicle wraps paid off in a big way: the company landed a major national fleet client and built a recurring revenue model around scheduled wrap replacements. Revenue grew from approximately $840,000 in 2018 to more than $4.5 million by 2022, with gross profit climbing to over $3.2 million alongside strong margin expansion. The business rebranded as Visual Graphx and repositioned itself as a leading visual branding provider with a genuinely national footprint — a long way from the partner tension that had been holding it back just a few years earlier. The Takeaway Visual Graphx’s story is a reminder that growth problems and leadership problems are often the same problem wearing different clothes. Resolving the ownership question created the clarity that let the company make a bold, focused strategic bet — and that bet is what turned a strong local printer into a national fleet-branding business. If unresolved partnership dynamics or unclear leadership authority are quietly capping your company’s growth, it’s worth getting an outside perspective before the tension does more damage than the market ever could. Waters Business Consulting Group works with owners and partners across Arizona to resolve exactly these kinds of challenges. Schedule a free consultation to talk through your situation. Contact Waters Business Consulting Group

    Read More »
    Social network illustration

    Here’s the Big Lesson from the Mark Zuckerberg Apology Tour

    Facebook’s very public apology tour sparked plenty of debate about privacy and advertising practices. But the real story has less to do with data and more to do with size — Facebook, like Google, has simply gotten too big to stay focused. Here’s what that teaches small business owners about the dangers of growth for growth’s sake.

    Read More »

    Imagine Selling Your Business…

    How Would Your Life Change?

    You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

    Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

    Thank you for your interest in learning what your business is worth. We will be in touch shortly.