Making money is the fun part of running a company. Business expenses, not so much. Even if numbers and calculations aren’t your thing, having a business expense tracker is so important. It helps you keep track of cash flow and makes paying taxes each year easier.
Tracking your business expenses constantly can actually save you time and money later. It keeps you organized and prevents you from overpaying in taxes. Not sure where to start? Here is a business expenses list of the top five expenses you should be tracking for your company.
1. Payroll and Benefits
Whether you employ 10 people or 100 people, every business has some type of payroll. It is probably the most common item on this business expenses list. Tracking pay is vital to making sure that your workers are getting the money they deserve for the hours they put into the company. Workers getting overtime pay rely heavily on a business expense tracker for payroll, as do freelance workers who don’t have a set number of hours each week.
You also need to keep track of the employee benefits that your company offers. This can include benefits such as health insurance, retirement funds, and paid time off.
2. Rent or Mortgage and Utilities
Unless your business is completely online, you have some kind of building payment to make every month. This is one of the more consistent business expenses, but that does not mean it isn’t important to track.
Utilities like water, heat, and electricity may change from month to month, making them all the more important to include on your business expense tracker. The last thing you ever want to happen is to not have heat or electricity in your office space, or not be allowed in at all, due to missed payments. Staying on top of these business expenses is vital for the success of your company.
The insurance coverage you have varies depending on the type of business you run. A typical office workplace does not need the same level of insurance as a factory. Whatever your insurance covers, make sure to include it on a business expense tracker. It’s not something you think about on a daily basis, but you will be glad you tracked the payments if you ever need to use the coverage.
4. Office Supplies and Equipment
Here are some business expenses you may have skipped over: office supplies and equipment. You may be wondering why it is important to track shipments of paperclips and staplers. Who cares how much money you spend on these?
Supplies and equipment are some of the business expenses you can deduct from your taxes. Anything necessary for the day-to-day running of your company can be written off. If you want to save that money, you better include office supplies in your business expense tracker.
Marketing is everywhere nowadays, from social media to email newsletters to SEO. Keep track of all your advertising business expenses so that you stay on budget. Using a business expense tracker for marketing costs helps you determine how beneficial the money you are spending on advertising actually is. Staying organized allows you to weigh the costs and benefits of your current marketing strategy.
Need Help Tracking Business Expenses?
If this business expenses list seems too overwhelming, you’re not alone. Bluefire Accounting offers assistance with bookkeeping and payroll at a price small businesses can afford. Don’t stress about business expenses any longer. Call Bluefire Accounting at (704) 979-4334 or visit them online to schedule a free strategy session.