Day: April 7, 2021

Business 101: Keep Track of Business Expenses from Day 1

As I started getting serious about my various business ventures, I made sure to note on my personal finance spreadsheet what expenses were business related and even gave them a different color.  If you have expenses from multiple businesses, you will want to track them separately as well.  For example, I have a sheet for U-prayer that tracks the costs for the website domain, g-suite email account, and monthly podcast costs.  I also have a tab for fantasy block where the cost to create the LLC, develop the app, website domain, g-suite, trademarking fees are all tallied up.  Tracking costs allows you to quickly see how much money is being spent on all your businesses.  Maybe you decide that when looking at your costs versus benefit that you want to discontinue one of your businesses.  Or maybe you use the sheet for tax purposes to remind you of what documentation or receipts you need to find.  Lastly, tracking your expenses allows you to potentially factor those costs into your break even and profit margin point for your product or service.  Along with tracking business costs I would recommend trying to funnel the purchases you make thru a PayPal dedicated to the company which would require you to register the business with the government.  If you don’t think the business is serious or proven enough to make it a corporation or LLC than I suggest dedicating a personal credit card to the business that you seldom use.  This will create another avenue for you to have decent documentation on your business transactions.  Of course, you could ignore all this advice and just chose to waste double or triple the amount of time digging the bank and credit card statements looking for past costs.  Do you self a favor and do track your business expenses right the first time.