Tracking & Managing Business Expenses

Hi there,

Staying on top of business expenses is no easy task. For many business owners, it may feel like there is always something that needs to be paid for. Efficiently tracking business expenses is the number one key to managing your finances and avoiding costly financial mistakes.

Getting a clear idea of what you're spending can help you discover where you can cut costs and help you anticipate cash flow changes. Whether you decide to track your expenses manually or use an automated system, there are some general practices that can help you manage funds. 

Here are some tips for tracking and managing small business expenses:

• Use a credit card - Open a dedicated business credit card to use for business-related purchases. This provides you with a revolving line of credit and a flexible payback option.
• Record all expenses - All purchases need to be accounted for. Keep all receipts and be sure to record all transactions in whatever record-keeping system you have set up.
• Schedule time to review - Review your numbers often, and set aside dedicated time to look at expenses and related metrics. 
• Know when to hire professional help - You can probably do most of the necessary accounting on your own, but if you have books that have fallen behind or need help with tax preparation, consider hiring a professional. 

The success of your business depends on your diligence, so don't let out-of-control expenses bring your company down. Tracking expenses is a great step towards better short-term AND long-term management that benefits you, your employees, and your customers.

If your business is struggling with lack of capital or a reduced cash flow, talk to our team to find out how factoring can help.

Thank you,

Daniel Eke

Factor Funding Co.