Tracking Business Expenses

Tracking Business Expenses

Accurate expense tracking is essential for understanding your true profit margins and preparing for tax time.

Why Track Expenses

• Calculate actual profit margins
• Identify tax deductions
• Monitor spending by category
• Prepare for tax filing
• Make informed business decisions

Adding an Expense

1. Go to Expenses
2. Click Create Expense
3. Enter expense details:
   • Vendor - Who you paid
   • Amount - Total spent
   • Date - When the expense occurred
   • Category - Type of expense
   • Description - What it was for
4. Attach receipt (optional but recommended)
5. Save the expense

Expense Categories

Common expense categories:

• Software & Subscriptions
• Office Supplies
• Travel & Transportation
• Marketing & Advertising
• Professional Services
• Equipment & Hardware
• Meals & Entertainment

Linking Expenses to Clients

For billable expenses:

• Associate the expense with a client
• Mark as billable or non-billable
• Add to an invoice when ready

Expense Status

• Pending - Needs review
• Approved - Confirmed expense
• Billed - Added to client invoice
• Reimbursed - Personal expense reimbursed

Best Practices

• Record expenses as they happen
• Always attach receipts
• Use consistent categories
• Review expenses monthly