Alright, now that we’ve discussed the major expense categories, we should discuss the various ways you can track them. As I have mentioned previously, if you don’t have a lot of expenses, let’s say 25 or less for the year, you can probably just do a spreadsheet. However if you have a regular business that has a regular amount of receipts, what is the best way to track these?
My advice is to go thru your monthly business bank statement, which as I advised previously you should have opened a separate business account for your business and not run it thru your personal account. If you also are using a credit card for your business, you also want to try to keep a clean card that is only used for the business. You can then use that as a record for data entry.
There are several bookkeeping programs out there, and the one I use is Quickbooks so I will discuss that one. The other programs out there are similar.
I have also used DacEasy which is a program I also like, and of course there are others such as Peachtree.
Next, enter each item, or do summary entries?