Business expenses and income - Why is this important and how to track them efficiently
- Nov 08, 2022
- 5 min read
Money comes in, money goes out.
Hopefully, more money comes in than the money than goes out, right?
Well, we want more than ‘hopefully’ for your business… and you’ll achieve this by tracking your business expenses and income.
Tracking gives you a full understanding and better management of your income and expenses.
Let’s look at this another way.
Sales are looking great, your sales forecast shows potential, and your business bank account is looking healthy.
Fantastic.
But what’s happening on the other side – with your expenses?
Have the cost of goods increased, are there any huge bills like tax liabilities that are due soon. Can you spend this cash, or do you need to set it aside for the future?
Tracking your business expenses and income can answer all these questions and more.
Why should you track your business expenses and income?
It keeps you organised
By monitoring your expenses and income it keeps your business records in order.
It’s easy for these records to get out of hand, if you don’t keep up with them, especially for a growing business, like yours.
You’ll quickly forget what certain expenses were for and where the income came from.
A backload of bills, receipts and pages of bank statements ready to be reconciled makes the task at hand that much harder to complete
It helps you prepare for taxes
When all your income and expenses are tracked and up-to-date you will know exactly what your tax obligations are, even if they are not due.
You can prepare and ensure you have enough money to pay them. It also helps you plan to ensure you set money aside to pay your taxes.
Sleek Scoop: If you think about your business expenses as tax deductions, you’ll want to keep track of every single one!
Monitors your business to build on your success
Tracking your business expenses and income is vital in determining whether your expenses are too high and assessing where your income is coming from.
From this information you can then define the areas of your business that need improvement and allow you to act on periods of growth.
What does business expenses and income tracking look like with Sleek?
When Sleek talks about tracking, we don’t just mean lump them all in one bucket with a total at the bottom.
We account for them in ways that help you to understand your business better and help it grow. We monitor the stability of your business through your expenses and income.
Basically, we complete business expense tracking by breaking down your expenses to ensure you understand how each expense affects your business and help you find ways to save.
From this, you can make meaningful changes to reach your goals for the business and its future success.
On the flip side, we track the money coming in to evaluate your income streams so you can take advantage of key growth products and services and periods.
We help you to act, not react.
And by acting, you get the most out of your changes!
Let’s start tracking your business expenses and income. Sign up now to the Sleek accounting plan that fits your business like a glove!
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