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Tracking and Managing Business Expenses

By on February 22, 2013 in Expense with 0 Comments

With the new year, your attention may be on controlling your business expenses to get a higher profit margin. By starting off as strong as possible, you can ensure that you can make a difference in your business expenses and can come out of 2013 in a more profitable position.


Tracking and managing business expenses

With the beginning of the new year, now’s the time to get things off to a good start when it comes to your business expenses.  Here are a few tips offered by the California Small Business Development Center on how you can identify unnecessary expenditures, reduce costs and help save time and energy at tax time:

·    Use accounting tools, such as Quickbooks. These can help you better keep track of expenses. Experts also recommend using the same software as your tax preparer to keep things simple.

·    Tax planning. It’s never too early to start planning for taxes. Be sure to record expenses you plan to deduct, including travel and entertainment, office equipment and supplies, etc.

·    Don’t use personal funds. You shouldn’t use personal cash, checking accounts or credit cards for business expenses. This will increase the possibility of IRS scrutiny.

·    Keep receipts for business expenses. Be sure to document what the purchase was for. If you don’t want to save hard copies, scan and store them digitally.

·    Be organized. Record expenses as they’re incurred rather than deal with heaps of receipts later — this will save time in the long run. You’ll also have a more accurate, up-to-date financial picture.

·    Monitor your progress. Use accounting software to generate reports and regularly keep track of your expenses. This will allow you to see if you’re in line with  your budget.

·    Watch expenses. Evaluate your spending – are you exceeding your budget? If so, look for areas to cut to improve your bottom line.

To learn more, visit SCMSDC.

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