- 1 Types of business expense spreadsheets:
- 2 How do businesses keep track of expenses?
- 3 How to make a business expense spreadsheet?
- 4 Conclusion:
A business expense spreadsheet is a document used by businesses to make sure that their business is financially stable and it can go on operating smoothly. It is important for them to have a system to monitor their expenses.
Types of business expense spreadsheets:
You require a system for your business to keep track of how much you’re spending. You will get a lot of benefit by using this spreadsheet. Here are the different types of business expense spreadsheets;
Basic expense template
A basic expense template is used to record the payment method, date, expense description, vendor, and amounts. For start-up companies and small businesses, these are particularly suitable as they are very simple. You may also like Company Budget Templates.
Travel expense template
It is mainly used to organize charges for meals, transportation, and hotels. It includes the mileage of the car that you use.
Business mileage expense template
Employees, in many cases, use their personal vehicles for business trips. However, it is especially true that the company will save money that it would have spent on a rented car. Also, it has to compensate the employee for the time they utilized their car. Companies can keep record of this information via this template.
Event expense template
This template is used to track estimated against the actual cost for each aspect of an event. The report serves both as an expense report and a budget. This is because it gives an added layer of data that ensure the event stays on track.
Project expense template
This spreadsheet reports and tracks all of the attributable expenses that has incurred while a specific project. The expenses type and expenses, in most cases, have been pre-approved by the management. It aligns with budgets and, as such simplifies reconciliations in the future.
Timed expenses reports
Expenses reports typically get filed on an annual, quarterly or monthly basis. On the basis of your organization’s accounting practices and payment structure, you can use this type of templates.
How do businesses keep track of expenses?
Your expense tracking becomes easier and faster by following below steps;
Separate business and personal expenses
Don’t mix these together. Keep them separate so that you will have a better understanding of your business’ costs. It also acts as an affirmation that you will have the accurate amount of tax-deduct able expenses come tax season. You should also check Travel Expense Report Templates.
Select your accounting method for your business
By using the cash accounting method, most small businesses track their expenses. This method is used to record income when you get it and expenses when making payments. Furthermore, there is also the accrual method that counts sales when you create them. You can also use an expense tracker template for documentation purposes.
Save your expense receipts
When tracking business expenses, you should ensure that you keep all the receipts of any business-related purchase you create. When making business-related expenses, if you consider using one debit or credit card, you can simplify this process.
How to make a business expense spreadsheet?
Here are the pointers that you should consider while creating your own monthly expenses template;
- To create a report, it is recommended to start from scratch. It is just like clearing your mind. This way, you have that chance to customize the document to serve its purpose.
- It becomes easier for you to make categories or add to existing groups, if you list down the expenses.
- From the list you have collected, you should begin classifying the operating costs into either variable, periodic or fixed expenditures.
- Don’t exclude any purchases. Their inclusion provides you the chance to create improvements. That way, the next time around, you will only focus on what matters.
In conclusion, a business expense spreadsheet is a comprehensive report that the businesses should make on daily basis. All of the expenses your business has incurred, it accounts for them. It tracks the money that you have spent.