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Expense Tracking

Definition

Keeping a record of all the money spent in running the business. Tracking expenses helps avoid overspending and makes budgeting easier.

What to consider

  • Record expenses as they occur.
  • Categorize spending to spot trends.
  • Review records monthly for adjustments.

Real world scenarios

  • Karen, a freelance writer, logs every expense from coffee meetings to software subscriptions using a mobile app.
  • A design studio in Portland maintains detailed spreadsheets for all overheads and supplies.
  • An online entrepreneur records every ad spend to evaluate marketing ROI.

Related terms

Supply Chain Financing
Gig Economy
Business Credit Line
Business Interest Expense
Sales Tax

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