About 20% of businesses fail within the first year of starting them.
Whether this is because of factors out of their control or within their control, there’s a reason so many fail. One of these reasons is not knowing how to manage business expenses properly.
So how can you make sure that as a business owner, small business expenses are not something you worry about?
Keep reading and we’ll tell you everything you need to know about a healthy cash flow!
Create a Budget
One of the most important things you can do as a small business owner is to create a budget. Without it, you may be spending more money than you ever realize.
Suddenly, you’re out of business.
To prevent that, you need to write down every business expense that you have even if it seems minuscule. From there, think about if you’re spending on anything that you don’t need to be. If you are, stop spending that!
Because you are a savvy business owner and created a budget, the next thing you need to do to make sure you are sticking to the budget is to track expenses.
This allows you to see where your money is going at all times. If you see you spent on some random things one month, make sure to change that for the following month.
Use a Spend Management Program
If you feel overwhelmed by the number of things you have to keep track of on a daily basis, then you should use a spend management program to help with the expenses and budgeting for your business.
Many of these programs have everything you need in one place.
For instance, you may be able to do the following with the program:
- Open a business credit card
- Track other business cards and put limits and customized controls on each one
- Store receipts all in one place
- Set daily spending limits
With the spend management program, everything you need is at your fingertips. Interested in this? Check Bento out.
Take Advantage of Tax Credits
As a small business, you have the ability to write off expenses that you have from your business.
For instance, if you are a photography business, if you bought a camera for business purposes, you could write that off in your taxes. You could also write off editing software or SD cards that you need for the camera.
The list goes on. And this can be applied to almost every type of business.
Manage Small Business Expenses
It can be difficult to manage small business expenses.
Once you have a budget, track your expenses, take advantage of governmental write-offs, and potentially use a spend management system, it gets a lot easier.
Did you find this article and the tips in it helpful? Then what are you waiting for? Go check out the rest of our blog for helpful tips!