Why Tracking Expenses Matters
Every dollar you spend on your business is potentially tax-deductible. But only if you can prove it. Proper expense tracking means more deductions, a lower tax bill, and a clearer picture of where your money actually goes.
Step 1: Separate Business and Personal
This is the most important step. Open a dedicated business bank account and business credit card. Mixing personal and business spending is the fastest way to create a bookkeeping nightmare.
Step 2: Categorise Every Expense
Common business expense categories include:
- Office & supplies
- Software & subscriptions
- Marketing & advertising
- Travel & transport
- Professional services (legal, accounting)
- Equipment & hardware
- Meals & entertainment (partially deductible)
Step 3: Record Immediately
The best time to record an expense is the moment it happens. Don't pile up receipts for month-end. A good accounting tool lets you log expenses in seconds from your phone.
Step 4: Reconcile Monthly
Once a month, match your recorded expenses against your bank statement. This catches errors, duplicate charges, and fraud early โ before they become big problems.
Step 5: Use Software That Does the Heavy Lifting
Accountable lets you categorise expenses, upload receipts, track recurring costs, and see your spending trends over any date range. Try it free today.