Using an business expense tracking spreadsheet

When you make expense tracking something you do without thinking – like brewing morning coffee or brushing your teeth – scavenging for receipts at tax time will be a thing of the past. With business expense-tracking software like QuickBooks, you can build a habit of taking a photo of your receipt from your phone the moment you buy something – and uploading it directly into an accounting software program. Here are 2 ways to keep accurate records of all the above. “Money in” is what you earn while “money out’ is what you spend to run your business - equipment, rent, office supplies, etc. How can you keep track of your business expenses easily? This eliminates the mental gymnastics of having to keep track of your personal savings (after-tax dollars) versus your business income (taxable dollars). TIP: Consider opening a business account to separate your business and personal bank accounts.

When in doubt, you can always double-check with a tax expert. To avoid getting audited, it’s important you don’t mix up your business and personal expenses by keeping your accounting clean, accurate, and honest. Tickets to a movie, or a new bike, not so much (unless you’re a film critic or a courier!) Personal expenses are costs that aren’t required for you to run your business.įor example : printer paper, and ink are both common business expenses. Simply put, good bookkeeping = good business! What’s the difference between a business and personal expense?Īny expense that’s directly linked to operating and earning money for your business is considered a business expense, which you can claim on your tax return as a deduction.

You’ll be able to file on time and you’ll keep the CRA happy.

You’ll be on top of deductions that can help reduce your taxable income.

You’ll have a better understanding of your income and related costs.

Why is it important to keep track of business expenses?ĭiligently tracking and recording all your expenses puts you in control and ahead of the game.

Daily expense tracker excel sheet