Let’s be honest—starting a business is hard enough. Now add money tracking on top of it, and things can feel downright confusing. But here’s the truth:
If you want to know how to track expenses as a new business owner, just follow these simple steps: open a separate bank account, write down every expense, use categories, and check in weekly.
You don’t need fancy tools or a finance degree. You just need a clear plan and the habit of paying attention.
Let’s break it down.
Why Expense Tracking Matters from Day One
Every dollar you spend tells a story.
If you don’t listen, you’ll miss out on where your money goes, what it’s doing, and whether your business is healthy or sinking.
Tracking expenses helps you:
- Make smarter spending decisions
- Stay ready for tax season
- Know how much profit you’re actually making
- Plan your future budget
When you track well, you stay in control.
1. Start with One Business Bank Account
Here’s the first rule—never mix personal and business money.
Even if you’re starting a small business, open a separate business bank account.
It helps you:
- See every business-related transaction clearly
- Avoid confusion during tax time
- Build business credit over time
This one step alone will save you hours of headaches later.
2. Record Every Single Expense
Yes, every single one.
It might feel small—like a $4 coffee you bought during a meeting—but it counts. Add that notebook, that software subscription, even that delivery fee.
You can track expenses by:
- Using a spreadsheet (like Excel or Google Sheets)
- Writing in a physical expense log
- Using a mobile app or software
If money goes out, write it down.
3. Use Categories to Stay Organized
Don’t just write down random numbers. Group your expenses into categories.
Try these to start:
- Office supplies
- Marketing or ads
- Travel
- Equipment
- Software/tools
- Meals (for business)
- Rent or utilities (if you have a space)
This makes it easier to spot where you’re overspending—or where you can cut back.
4. Try Free or Low-Cost Tools
You don’t need to pay a fortune to stay organized. Many tools are free and beginner-friendly.
Good picks include:
- Wave – Free and made for small businesses
- Google Sheets – Simple and flexible
- Zoho Books – Low cost, user-friendly
- QuickBooks – Easy to scale as your business grows
Pick one and stick with it.
5. Keep All Your Receipts
Receipts are proof.
If you get audited, or you forget what you bought, a receipt will help you out.
Here’s what to do:
- Keep paper receipts in a folder
- Snap photos and store them digitally
- Use apps that let you upload and tag them
It’s a tiny habit that protects your business.
6. Set a Weekly Expense Check-In
Most people stop checking in—and that’s where things go wrong.
So block just 30 minutes a week. Review your spending. Ask:
- Did I go over budget?
- Was this a smart purchase?
- What can I cancel or change?
Small check-ins build big habits.
7. Separate Fixed and Variable Costs
Not all expenses behave the same.
Fixed costs stay the same—like rent, software, or internet.
Variable costs change—like supplies, ads, or travel.
Knowing the difference helps you plan better and avoid cash crunches.
8. Save for Surprise Costs
Business always comes with surprise costs.
A broken laptop. A last-minute license. An unexpected fee.
Set aside even $20 a week in a “surprise fund.”
That little cushion can save you big-time stress later.
9. Revisit Your Budget Monthly
A budget isn’t one-and-done. It’s alive.
Every month, review what you planned vs. what you actually spent.
Make changes. Adjust to reality. Don’t wait for problems to pile up.
Stay flexible, not frozen.
10. Ask for Help If You Need It
Feel overwhelmed? You’re not alone.
You can:
- Watch beginner videos
- Join free business forums
- Hire a part-time bookkeeper
- Ask an accountant during tax time
Don’t guess your way through it. Ask and grow smarter.
Final Thoughts: How to Track Expenses as a Beginner
Let’s wrap it up clearly:
To track your expenses when starting a business, open a separate bank account, record every expense, use categories, choose a tool that fits you, check in weekly, and save for surprises.
Start small. Be consistent. Even a notebook and 30 minutes a week can change the game.
You don’t have to be perfect—you just have to begin.
Need help picking a tool or setting up your first log? Just ask.