Hello, everyone, I would like to share my thoughts with my today article about various business expenses and how we can track them. Are you pretty much the sure that every Businessman does some sort of research in tracking their business? Do they get their ROI on time? Can anyone tell this confidently?
Well, I am confident enough to tell the story behind this. Commencing a business is not a child’s play. If you are a well-established businessman and simply you need to go and come back without doing, anything then also it’s challenging to meet up your expectation. I am pretty much sure no business can be stagnant it requires a valid and accurate business transaction with regular cash flow.
Covering my point of view:
In a simple manner, I want to say that every business needs a huge amount of capital for huge investment for the huge amount of return. We all know this, do you? Yes? Now the question is all about tracking your expenses with an eagle eye view is a must. Why it is must is showcased as under:
How to you do “Eagle Eye View” analysis?
1. Custom Categorization of the expenses:
Now, what do you mean about the custom categorization of expenses?
What I mean is all you need to do is create common monthly expense list and make sure you don’t miss anything. Once you get a list all you need to do is go for a best expenses management tool or maybe you can go for cloud-based so that you can access it from anywhere no matter where. Once you choose some best Cloud based application to make sure you starting noting those expenses no matter either it’s for Tea or Transportation.
2. Jotting down in books of accounts:
It’s so easy, isn’t it yes? Well once you get the category items all you need to jot down it into books of accounting to figure out what amount you have invested and for what reasons.
3. Spent it into phases:
Thanks to the amazing cloud-based invoice tracker tools that they give best custom expense tracking features which are so mesmerizing in look. However, all you need to do is to make some phases or gaps of overall monthly expenses and create the bi-weekly budget so that you will manage your expenses automatically with your cautious mind.
4. Matching the Month Over Month data:
Once you follow the practice to track all your expenses month over month basis it’s not over. All you need to do is to match this data with the previous month and see how much you can expense more or saved more. Something you need to be on your toes to get accurate and efficient results to know the exact picture of your action steps. For example, you won’t be going to call your accountant or will go to check your books of account in the middle of the month or on a quarterly basis. Will you? No, I don’t think so.
Simply use the simple formula to track the monthly expenses which will give you figure in percentage. I.e.
Current Month Expenditure – Previous Month Expenditure/Previous Month Expenditure * 100.
By using this formula you will get a percentage of expenses which can give you a quick glance where your expenses are into. See the example as under:
5,000 (Current Month) – 4,000 (Previous Month) / 4,000 (Previous Month) * 100 which gives 25% more in this month.
Oh!! I have invested 25% more this month – I better control it now.
5. Choosing best Time & Invoice tracking software for your business which is deem fit:
Get going search, try and invest more time in choosing best cloud-based software for your business to track each and every expense and make sure get the best out of it. For example, CloudBooks is one of the best as per my opinion. Think about maximum flexibility, hazel free, speedy and accurate software or application which are easy to use. At last, I would say your business can be developed and enhanced only if you track and monitor its activities.
Article Written By Pinal: Pinal works closely with CloudBooks being a digital marketing strategist he helps small business and start up to gain web presence with his creative efforts. He also works with various designs and virtual arts both professionally and as a hobby. Please check out my Linkedin.