Simple Business Expense Spreadsheet
A simple business expense spreadsheet can save you a lot of time. It is the one tool that I use every single day to keep track of what I spend my money on. In fact, I tend to use it more than once a day. Here are some reasons why you should use one of these spreadsheets to keep track of your expenses for your small business.
Let’s face it, business owners get so consumed with the daily business activities that we forget to keep track of our expenses. If you work on your own, you probably do not have an official expense report for your business. That is okay; you can make your own. It is simple and easy to do.
First, you will just want to get a plain paper or flat type of document that looks like an invoice. You will then have to go crazy trying to make it look presentable and professional. Trust me; you do not want it to look like you used glue to attach it. The best thing that you can do is have someone else do it. Trust me.
Secondly, you will need to write down all the details of your expenses one by one. Your receipts or invoices are going to be very messy. They are also going to take up a lot of precious real estate on your computer. You will have to keep track of every single receipt or bill in your business as it relates to your expenses.
Thirdly, you will want to make sure that you keep accurate records. There is nothing worse than underestimating an expense and then being surprised by a large bill at the end of the month. You are going to get over this though if you are keeping accurate records. Trust me.
Fourth, you should use your simple business expense spreadsheet to keep track of what items are critical for financial success. This is where you can begin eliminating items that you are simply not getting enough of. For example, if you are constantly buying coffee because you love the taste, you may be ignoring the fact that you are running your business on auto pilot. This means you are spending money on items that are not critical to your bottom line.
Fifth, you should always consider what you are going to spend your money on after you have eliminated all the expendable items. If you continue to buy coffee when you are not even drinking any, you’re going to spend twice as much as you should. Keep this in mind when you’re trying to eliminate spending. I’m always amazed at how many people continue to spend on these things when they could just use the money to hire a courier or a plumber.
Sixth, you will want to create separate categories for your own personal expenses and those of your business. Many times, personal and business expenses are lumped together under a single heading. However, separating the two can help you determine which expenses are vital to achieving the goals you have for your business. You may want to add a line item for a nice dinner you attended on your business trip to impress investors, for example.
Seventh keep track of your expenses by using a spreadsheet that has columns for each category. It’s also a good idea to keep columns for recurring monthly expense, such as the electricity you use for equipment, as well as expenses for one-time purchases such as equipment or inventory. These can either be viewed in columns of dollars or cents. Using either type will allow you to determine whether your discount rates are too high or if you are paying too much for your merchandise.
Finally, you should keep an eye on your cash flows. You need to keep a close eye on your balance since it represents your future income. When you make credit card payments, remember to deduct the balance due from your available credit every month. Likewise, keep an eye on your minimum balance every month and add that amount to your available cash each month. You don’t want to keep your cash balances at higher levels than you need to.
Keeping track of your business expenses is vital to your success as a small business owner. If you don’t keep track of your expenses, you are flying blind. However, by creating a spreadsheet that allows you to quickly identify your expenses and their category, you can ensure that you are not spending more than you are making. The beauty of using a business expense spreadsheet is that you can download it to your computer and print out as many copies as you need to. Now that you have all these resources, you’ll be amazed at how much money you are saving!