If you're starting a business, keeping orderly records is essential for your own clarity and for passing along info to those you employ.
One of my biggest mistakes when starting out was not recording expenses meticulously. What that means is come April, I have to do a deep dive to find out what I could write off for my taxes.
I had good intentions--I started out with an expense/income spreadsheet, but what I failed to do was set up a system for actually updating it.
If you like to do things manually, excel spreadsheets are your friends. If not, there are apps you can connect to a credit card which you only use for business expenses. They track all your purchases, making it easy to see how much you spent in any given time frame. I haven't tried this yet but will be sure to write a post once I do!
Expenses are likely to include:
Also, calculate 30% of your income each month and add that to expenses, because taxes (sorry, don't hate me).
Whether you choose an automated system or a manual updating method, set a weekly check-in date where you review all expenses. It's important to be conscious of what you are actually spending so that you can plan accordingly.
What methods do you use for tracking expenses?