As a business owner, it’s important for you to have a system to monitor your financial standing. This includes monitoring expenses, income, budgeting, proper planning, and so on. Using a business expense spreadsheet ensures that your business is financially stable and it can go on operating smoothly.
Business Expense Spreadsheets
Types of spreadsheets for business expenses
You need a system for your business to keep track of how much you’re spending – and you will benefit a lot from using a business expense spreadsheet. Making your own report template doesn’t have to be a challenge as long as you know what type of template you need:
- Basic Expense Template
Use this template to record the payment method, date, expense description, vendor, and amounts. These are especially appropriate for start-up companies and small businesses because they’re very simple.
- Travel Expense Template
This template is primarily used to organize charges for meals, transportation, and hotels including the mileage of the car that you use.
- Business Mileage Expense Template
In many cases, employees use their personal vehicles for business trips. While it is true that the company will save money that it would have spent on a rented car, it has to compensate the employee for the time they used their car. Companies can keep track of this information through this template.
- Event Expense Template
Use this template to track estimated against the actual cost for each aspect of an event. As such, the report acts both as an expense report and a budget because it provides an added layer of data that makes sure that the event stays on track.
- Project Expense Template
This report reports and tracks all of the attributable expenses incurred during a specific project. In most cases, the expense types and expenses have been pre-approved by the management to align with budgets and, as such simplifies reconciliations in the future.
- Timed Expensed Reports
Generally, expenses reports get filed on an annual, quarterly or monthly or weekly basis. You may use one or more of this expense report template depending on your organization’s accounting practices and payment structure.
Expense Report Templates
How do businesses keep track of expenses?
To ensure that your business will always have updated financial information, you need to keep track of your business expenses using a business expense spreadsheet. Doing this makes it easier for you to claim tax-deductible business expenses. The following steps can make your expense tracking easier and faster:
- Separate business and personal expenses
Never try mixing these two together. If you keep these expenses separate you will have a better understanding of your business’ costs. It also serves as an assurance that you will claim the exact amount of tax-deductable expenses come tax season.
- Choose your accounting method for your business
The practice of most small businesses when tracking expenses is by using the cash accounting method where you record income when you receive it and expenses when making payments.
There is also the accrual method which counts sales when you make them even if they haven’t gotten paid yet and expenses when you receive a purchase or a service even if these haven’t gotten paid yet. Either way, use an expense tracker template for documentation purposes.
- Save your expense receipts
Make sure that you keep all receipts of any business-related purchase you make when tracking business expenses. You can simplify this process if you consider using one debit or credit card when making business-related expenses.
How do you do an expense spreadsheet?
A business expense spreadsheet is a comprehensive report created on a regular basis. It accounts for all of the expenses your business has incurred. This document only tracks the money that you have spent. You may create your own monthly expenses template by following these guidelines:
- Begin with a blank spreadsheet
It’s recommended to start with a clean sheet when creating the report. It’s like clearing your mind so you have that option to customize the document to serve its purpose.
- List all of your expenses
If you list down the expenses, it becomes easier for you to create categories or add to existing groups.
- Sort your expenses into categories
From the list you have gathered, start categorizing the operating costs into either variable, periodic or fixed expenditures.
- Be as honest as possible
Never try to exclude any purchases. Their inclusion gives you the opportunity to make improvements so that the next time around, you will only concentrate on what matters. Without honesty, you will never improve.
You should concentrate on making an expense sheet that is both effective and perfect. For this, you can either create it yourself or use a free template that you download online.
Excel Expense Templates
How do you keep track of business expenses and income in Excel?
If you’re already familiar with Microsoft Excel, you can design an Excel expense template with the right formulas. This makes it easier for the business expense spreadsheet to serve its purpose. Here are the steps:
The categories that you use for the columns of the spreadsheet will determine how you will break down the methods by which your business will spend money. To avoid any problems with the Internal Revenue Service, you may use the categories included on their Schedule C tax form. These include categories like supplies, cost of goods sold, rent, depreciation, and utilities.
- Creating the Spreadsheet
Any spreadsheet that can keep track of expenses can also serve as your ledger. Here are the steps for this:
Use the first row of the columns for the categories.
Use the columns on the far left for the date and the columns next to those for the vendor’s name.
Input each expense amount in the columns that correspond to their category.
Calculate the total amount that your business has spent on each of the categories by adding the right formula.
If you’re using a handwritten journal for the same purpose, use a calculator to get the total amounts.
- Using Different Spreadsheets
You can use a spreadsheet to make a summary of your expenses and compare the expenses over time. Many businesses use this spreadsheet for capturing an overview because it enables them to clearly and quickly see how their expenses in each category varies from one month to another, and how their expenses in the various categories compare.