As a startup, there are many new tasks that the business owner has to deal with. Bookkeeping is one of the most important to ensure the business’s financial stability going into the future. Here are four practical ways that startups can easily track their new expenses and end their first fiscal year in the black.
Use a Receipt Tracker
One of the simplest methods for keeping track of your business expenses is to use a receipt tracker. These can be easily downloaded on any mobile device, like your smartphone. Every time you get a receipt, you simply take a picture of it. The tracker will automatically pull the relevant information from the receipt, including the store name, the amount spent, and so forth. All the data is simply imported into the receipt tracker interface for easy access. This will also make filing your taxes the next year much easier and smoother for your accountant.
Expense Tracking Software
Tracking your business expenses with expense tracking software is easier than ever. Simply obtain the software, link your bank accounts and credit cards, and you’re ready to roll. Any small business expense management software will automatically record expenses from all your business accounts, including your bank accounts and credit cards, into its interface. This allows you to easily see all of your expenses in one convenient location. Expense tracking software helps particularly with budgeting purposes and seeing where you may need to allocate more funds in the future.
Bank Account Transaction Sheets
If you’re not looking to invest any money in expense tracking, then you may just want to use the traditional bank register. Initially, this method involved filling out your checkbook for each check that you write. With the added technology of today, it’s far easier to pay bills online or via a debit card. You simply need to login to your company’s bank account and look at your expenses data. Most online banking platforms allow for easy viewing of expense data. If you are going to keep manual records like this, make sure you have a system for keeping them updated on a regular schedule.
If you really like mathematics, then a traditional accounting method may be right for you. This type of method includes filling in daily records of all of your income and expenses for the day. Since this ledger will get filled out each day, you will have up-to-date expenses information for your business. However, realize that this method requires a large time commitment. As your business grows, you’ll likely find that the accounting method may no longer fit into your time schedule. If you do want to continue with this traditional method, consider hiring a professional bookkeeper or accountant to do the work for you.
As a new business, there are many tactics you can employ to keep track of your new expenses. From the basics of using the accounting method and bank account transaction sheets to upgrading to receipt tracking and expense management software, there’s a right method for everybody. Just ensure that you’re taking the time to consider what will work for you now and in the future.