Understanding how to correctly track your business expenses is essential if you want to know how well your business is actually performing.
By keeping track of your spending, you’ll get a clear, accurate picture of the strengths and weaknesses of your business, which will save you time and effort come tax time.
However, did you know that an invoice generator can help you track your business expenses? If you find this to be an entirely new concept, our invoicing experts have created this guide for you.
Here, you’ll learn all about how to track your business expenses, and how invoice tracking can come in handy to get better insight into your payments and expenses.
How To Successfully Track Your Business Expenses
As a small business owner, keeping track of your business spending should become second nature to you. However, it’s not as simple as it may seem.
Owning a business already means that you have a lot of duties to balance. So, follow our instructions below to streamline the expense tracking process and help maintain organization for both you and your business.
Keep a Separate Business Account
The first step you’ll need to take is to divide your personal and corporate spending.
Combining your personal and corporate funds can put your personal assets in danger if your business has a downturn, so you should avoid this at all costs.
The best approach is to open a different bank account. It won’t be difficult for you to locate online-only banks that offer a business credit card and other advantages catered to the requirements of small firms.
You could also open a dedicated business bank account at a local bank if you want.
After that, it’s smart to connect your company’s credit card or bank account to your accounting program so that you can import transactions and get spending updates automatically as invoices are due.
This method will make it simpler and alert you to any changes in your bank account activity, allowing you to keep track of your business spending.
Use Invoice Tracking and Accounting Software
You may already be wondering, how exactly can an invoice generator help you keep track of your business expenses? Well, here’s how.
Understanding how much money comes into your business is just as important as knowing how much goes out.
A good tool for this is your company’s invoice tracking software, which should ideally have features that show you how much money your company is making from billing its customers.
With ProInvoice, for instance, you’ll be able to see a summary of your costs and income on the dashboard.
You can use this innovative financial reporting tool to track and manage your monthly spending, remain on target, and accomplish the spending objectives you’ve set for your business.
Here’s how to use the financial reporting tool on ProInvoice’s software for your business report and auditing:
- Enter Proinvoice.co on your preferred browser and sign in with the required login details
- After signing in successfully, you’ll see the currency drop down menu on the dashboard page. It allows you to filter the dashboard information based on currency, so click the desired currency for which you want to track payments and expenses.
- You’ll see a number of cards on the next page:
- The first card shows the total number of invoices you’ve created on your business account, with the total amount of money the invoices contain.
- The second card shows the amount and number of paid invoices recorded on your business account
- The third card shows the amount and number of pending invoices for which payments have not been recorded
- The fourth card shows the amount and number of unpaid invoices for which payment is past due
- The next section on this page will show you the total amount and number of invoices created today, yesterday, this week, this month, and this year respectively on your business account
- The next section is the Payments Received section comprising a bar chart, pie chart, and the invoice record pie chart:
- The Bar chart depicts details of payments received and dates over a period of time. You can click the bar to see each amount received and the respective dates
- The Pie chart uses different colors to depict the fractions for each paid invoice that makes up the total revenue over a time frame
- The Invoice record pie chart depicts in three colors a breakdown of the total number of invoices over a given time frame. The green color represents Paid invoices, the amber represents Pending invoices, and the red represents Overdue invoices.
Note that tapping on each of the colors will show you the total amount for each category on the invoice record pie chart.
You can also filter the entire Payments Received section based on the time frame for which you need data, e.g. This week, Last 30 Days, Last 90 Days, This Year, or a Custom Range of your choosing.
This detailed data that the financial dashboard on the ProInvoice invoicing software provides is a good way to keep track of your invoices and revenue.
Keep Track of All Business Receipts
Maintaining a record of all your receipts is also typically required when you’re trying to track your business expenses.
This can help you record business expenses correctly, verify your tax deductions, and balance your bank statements and books.
ProInvoice also offers features to record expenses without making multiple entries at different locations.
You can compare these expense records with information gotten from tracking invoices and payments to make informed decisions on budgeting.
This way, you’ll be better able to reach your business’s financial goals. It also facilitates easy and error-free auditing when the need arises.
Reach your Business’s Financial Goals with ProInvoice
If you want to make smarter spending decisions, it’s important to keep a close watch on your business’s income and expenditure.
ProInvoice’s invoicing software offers a simplified way to achieve this, as well as many other innovative invoicing features that you and your business can benefit from.
Sign up with ProInvoice today and get the detailed insight you need to take charge of your company’s finances. Your business will be much better for it!
