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This article is for educational purposes and does not constitute legal, financial, or tax advice. For specific advice applicable to your business, please contact a professional.
Many business owners struggle with getting started managing their business finances. If this resonates with you, you’re not alone. In a 2021 US Clutch survey, half of business owners said they didn’t have a documented budget for 2020, and most that made a budget were more likely to stick to them.
If you’re a business owner just starting out, getting the basics of your business going and starting to separate your business from personal finances, using an expense tracker can help you see how your spending is tracking against your budget.
Tracking your expenses
Whether you’re setting a goal for a vacation, paying off a loan, or building an emergency fund, an expense tracker can give you a quick look at your cash inflows and outflows. This allows you to easily understand your budget so you can stay within it and make any adjustments you might need.
Using the expense tracker
This tool is a PDF that will allow you to put in your own inputs and change the amounts as needed. If you notice you’ve entered the wrong amount, be sure to clear the total at the bottom and hit refresh. This tracker can help you keep track of personal expenses and some business expenses as well. If you’re a business owner looking to track only business expenses, consider using a balance sheet template.
Gaining a better understanding of your business finances
As you plan your yearly or monthly budget, start with this expense tracker. This will set a foundation for you to understand how much you’re spending for yourself in relation to your business. As a next step, consider using a balance sheet template, conducting a cash flow analysis, and creating a profit and loss statement to gain a holistic picture of your business, which can help you make more timely and informed decisions.
Square has a broad set of flexible tools ready for nearly any job, and you only ever pay for what you need. If you are a Square seller, there are a range of solutions you can leverage to better manage your cash flow. Consider using this tool with some of these solutions to get a good sense of your budget and what you can do to best streamline it for your business.
Using an Expense Tracker to Form Good Financial Habits
