Tracking Business Expenses For Better Budgeting With A Simple Tool

If you’re looking for a way to manage your business expenses, you should consider using an expense tracking app. Tracking business expenses can be tedious and time-consuming without the right tools. With so many apps available in the market today, it’s easy to use one that suits your needs! In this blog post, we will discuss why businesses should look into expense tracking and how they can get started with an expense tracking app of their own.

Expense tracking apps can save you money on taxes

Whether it’s tracking receipts, mileage, or purchases, Shoeboxed offers the best options to ensure that everything is accounted for to save and maximize tax deductions. In addition, this expense tracking app goes into great detail about how much money has been spent per category so businesses can better budget their funds.

Tracking expenses with an app is much easier than using a paper journal

For small businesses, tracking business expenses with a paper journal is tedious, time-consuming, and can lead to errors. Expense tracking apps have improved over the years by offering robust capabilities that make it easy for businesses to keep tabs on how much they’re spending and where their money goes!

With an expense tracker app like Shoeboxed, you’ll never miss another receipt or misplace your mileage log again!

Tracking expenses with Shoeboxed is more intuitive than tracking on spreadsheets

With Shoeboxed, you won’t have to worry about formulas or remembering which cell is for what because it’s all set up in one place!

Excel lacks the ease of use and intuitiveness of an app like Shoeboxed. With this app, it’s easy to categorize your expenses into sub-categories (e.g., food, hotel) to better organize the data and see where all funds are being spent.

The best expense tracking apps will help you keep track of your spending and make it easy to categorize the different types of expenses 

Your receipts are about to get a whole lot easier on the eyes. As soon as your receipt has been scanned, Shoeboxed categorizes the information by business, the amount spent, date, etc., so that you can see all of this information at one glance – no more scrolling left-to-right through an endless spreadsheet! The data is searchable and editable whenever users need to make changes or add additional details after scanning their documents in real-time.

Tracking mileage

For frequent travelers, it’s hard to keep track of your work-related travel trips and make sure you’re receiving the correct reimbursement for your time. With our GPS-enabled features, Shoeboxed makes it easier than ever before to manage expenses through reporting on mileage driven, so no more guessing how many miles were logged while out running jobs and errands; It’s always accurate!

Expense tracking apps allow you to export data for tax purposes easily or send reports straight to your accountant if needed 

Exporting and importing data is simple with Shoeboxed. The expense tracking app allows you to export your expenses in various formats, including .pdf and .csv files, which can be used for tax purposes or sent directly to your accountant! This will significantly improve your mood and reduce stress during tax season every year.

For larger companies, like tech or software creators, their SaaS accounting teams will be able to easily sort through company/employee expenses.

You can send in images of receipts

Digitally archived receipts are safe from being lost in the depths of your shoebox. The IRS and CRA will accept digital images, so you don’t have to worry about losing any crucial documents during an audit!

Shoeboxed is an expense tracking app that makes it easy for you to create expense reports directly from your phone, export them right into the system of whoever needs those records quickly and efficiently without ever needing to type anything in or scan anything out. Now, with just the simple task of taking images of your receipts with your Phone camera than filling in forms by hand at home or even logging onto a computer within office hours for programs like Quickbooks — no longer do you have to wait days before getting any actionable data back about what’s happening inside your company where every dollar counts!

Shoeboxed lets workers work smarter rather than harder to spend less time inputting tedious information and more time helping to build your business.

Shoeboxed will sort through your receipts

Receipt management can take days to go through and organize everything properly. Suppose you haven’t calculated your expenses but kept all your receipts. In that case, as an expense tracking app, Shoeboxed can analyze your data and let you know how much money is left in each category to better budget accordingly.

All you have to do is gather all of your receipts in an envelope and send it over to Shoeboxed. The team will then manually sort through your receipts and convert your information into online data.

Conclusion

The best expense tracking app for small businesses will keep track of receipts, mileage logs, purchase history, and other categories like food/drinks or hotel stay to provide users with a complete picture of their expenses. With Shoeboxed‘s intuitive interface and features like exporting reports directly to an accountant, it’s easy to see why this expense tracking app should be on the list of considerations when looking at ways to streamline business processes!

At Shoeboxed, you can create an account and get started on the 30-day trial right away with your chosen plan. You’ll have 30 days to use the features of this subscription before deciding if it’s for you – no need to worry about getting locked in or wasting any time on a product that doesn’t serve your needs.

How Does Shoeboxed Accounting Solve Basic Business Problems?

What is shoeboxed accounting?

How much time do you spend on finding the physical receipts and business transaction records?

How much space do you spend on keeping these records? 

How much energy do you spend on keeping track of these transactions?

How much trouble do you go through at the end of the tax season to account your expenses? 

If your answer to those questions is quite a lot, I suggest you spend just 5 minutes of your time to know how Shoeboxed services can solve all these problems for you and your business. 

What is shoebox accounting? 

Shoeboxed accounting is the practice of filling a symbolic shoeboxed with receipts, invoices, and other accounting documents so that an accountant can sort these out at the end of the accounting year. 

How does Shoeboxed accounting help you increase revenue? 

Shoeboxed accounting saves business owners’ costs by reducing the stress of keeping accounting records and adding more time to concentrate on growing the business.

Why do you need to use shoeboxed accounting specialized software? 

Shoebox accounting software such as Shoeboxed reduces the risk of human errors and optimizes the efficiency of the automated accounting system. 

These are the most prominent features of Shoeboxed that make accounting a walk in the park for your business. 

  1. Important receipts and documents are scanned and safely stored at a physical warehouse and in the cloud. You can easily access all the data that you need without worrying about safe keeping the records. 
  2. Key data is extracted from your business records and organized in your account. At the click of a button, you can track all expenses and review scanned images of your receipts. 
  3. Expense reports are simply organized and created catering to your own needs. You can choose to export all or part of your data at any time and have them beautifully downloaded in the format of PDF or CSV files. 

If you are still not sure whether Shoeboxed is a good fit for you, reach out to us at our support center and give it a try completely free of charge.

How to Reduce Your Expenses (Sustainably and Effectively)

In the time of COVID-19, many of us are understandably anxious. With doomsday headlines about record unemployment numbers and businesses closing their doors, it’s difficult to escape feelings of uncertainty. 

Most of us know somebody who’s lost a job or had a salary cut, whether or not we have personally been impacted. So it’s understandable that many people are thinking about how to make more money or spend less of it.

Even if your income has not been impacted by COVID-19, boosting your savings account is never a bad idea. Reducing expenses can also put you in a place to more freely help others who may have been more severely impacted by the pandemic. 

Fortunately, reducing expenses doesn’t have to be complicated. We’ve put together some simple steps you can follow to effectively spend less money.

Understand Your Cash Flow

To effectively cut your expenses, you need to understand money going out and money coming in. If you are an avid budgeter, then you probably understand this pretty well. But if not, you’ll want to take some time to assess your finances over the last few months. 

Money Going Out 

We recommend compiling and sorting your expenses for the past 3 months to get an accurate picture of how much you actually spend in a typical month. Of course, the more data you have the better. If you use a tool like Mint or if your bank has built-in charts and categorization features, this step should be pretty easy. 

If not, there are lots of ways you can start to understand your expenses from the last few months. The easiest approach would be to download your bank statements, transfer them to a spreadsheet, and add categories as needed. 

However, if your bank does not provide itemized statements or you use cash regularly, you’ll want to supplement this data with a tool like Shoeboxed. With Shoeboxed, you can easily digitize and organize paper and e-receipts by categories. 

Money Coming In

Determining how much money you have coming in should be more straightforward for most people. Salaried workers with no additional income sources simply need to reference their paystubs. 

However, if you are a freelancer or have a variable component to your income (think tips or commission), you’ll want to work off of your worst-case scenario, or lowest possible income. If you receive tips or commission, the most straightforward way to get this figure is to work off of your base pay. For freelancers, we recommend working off of your lowest income month in recent history (think 6 months – 1 year). 

Of course, if you have recently lost your job or otherwise had a dip in income, you need to work off of your new reality. It won’t help you much to assess based on your prior income. 

Once you have completed both of these steps, you’ll have a snapshot of your financial patterns. For some people, the math may not add up, meaning they spend more money than they have coming in. If this is the case for you, you know you either have to make more or spend less.

Either way, you now have a better understanding of whether you’re operating at a net gain or loss and can take the appropriate course of action. 

Define What is Truly Essential

Once you understand your cash flow, you need to define how many of your expenses are truly essential. If you’ve ever saved up for an emergency fund, you likely already have a calculation for what your bare-bones expenses look like. 

If you haven’t, make a list of your MUST PAY categories. Think of things like monthly bills, utilities, minimum payments on credit cards, a realistic but lean food budget, etc. This will help you understand how much money you need to live on and how much of your money going out is nonessential. 

While sticking to only essential expenses would be the fastest way to bulk up your savings account, that’s not always realistic. If you are bringing in more money than what you absolutely need to live off, you have some wiggle room for spending.

If you’re having a hard time determining what is truly essential, take a look at this guide from Ellevest

Ask For Flexibility Where You Need It

Once you have a clear understanding of how much money you really need to live on, you can start looking for wiggle room within those essential expenses. For example, if you are a homeowner, research your options for mortgage relief. You may also consider calling your credit card company and negotiating your interest rate for long-term savings.

Whether you’re dealing with rent, student loans, or credit card debt, research relief options or consider negotiating where possible. While you may find it difficult to pick up the phone and ask for help, the reality is that many landlords and lending institutions would rather make adjustments and meet you where you are than risk having you default on your payments completely. 

Cut Where You Can

Once you have a true understanding of your cash flow, know what expenses are truly essential, and have negotiated as many of your expenses as you can, it’s time to start making some cuts. 

Hopefully, you’ve identified excessive or unnecessary expenses that can be easily reduced or cut and can start there.

However, it’s not always that straightforward. For example, many people struggle with keeping their food budget under control. You obviously can’t completely cut out your food spending, so you’ll have to adjust some other way. 

Here are some simple ideas for shifts or reductions you can make in common problem areas. 

  • Clothing and home decor – Take advantage of resale apps like Poshmark or Depop to purchase clothing or home decor that’s new to you. While this won’t help you curb your shopping habit completely, you can rest assured that you’re saving some money. You may also be supporting people who make a full-time living off of these apps, and bonus points if you boost your income by becoming a seller too! 
  • Food – Food is one of the most common areas where people overspend, especially when it comes to eating out. You may find it helpful to set some ground rules for how often you’ll let yourself order in or go out to eat. Alternatively, you can put on your chef hat and figure out how to make your favorite takeout dishes at home.
  • Bulk purchases – It’s no secret that you can save money on items you purchase frequently when you buy in bulk. If you take this approach, make sure to do the math (by comparing unit costs) on whether or not you’re actually saving money. You also don’t want to break the bank just to save a few bucks, so we only recommend this approach if you truly can afford the upfront cost associated with bulk buying. 
  • Implement a sinking fund – If you know that you won’t be able to truly resist spending in certain areas, you can try starting a sinking fund. A sinking fund is typically made up of known but irregular expenses, like trips or car repairs or clothing. You may know that these expenses will eventually come up, but you don’t know always know when. However, that doesn’t mean you can’t plan for them! Putting aside a little bit of money every week or month in a separate account for when these expenses come up can help soften the blow. This tactic can also help you prepare to purchase the things you want without having to feel guilty when you indulge. 

For problem areas where you tend to overspend, consider giving yourself a spending or frequency limit to shoot for. Maybe you will only allow yourself to spend $50 on clothing a month or to eat out once a week.

If you have a budget, you may already have many of these rules established. Even if you don’t put together a formal budget, setting these types of parameters will give you something specific to work towards as opposed to simply “reducing spending.” 

And if you find that there isn’t enough you can reasonably cut and still make ends meet, make sure you’re taking full advantage of all relief options available to you or seeking new ways to increase your income. 

Conclusion 

Whether or not your income has taken a hit in light of COVID-19, reducing your expenses is probably not a bad idea. It can help you boost your savings in case of emergency, or put you in a place to help others who have been financially impacted by the pandemic. 

Regardless of your motivations, it’s critical that you understand your expenses before you can make cuts in a sustainable way. These simple steps can help you determine where you can afford to make cuts that will hopefully give you some peace of mind.

Learn more about how to understand your expenses with Shoeboxed.