![]() ![]() Having a long-term financial goal will make expenditure monitoring more bearable and even joyful - depending on what your goal is. Expense tracking will ensure you’re on the right path and putting money towards your priorities, whether that’s getting out of debt, saving for a house, or investing in a new business venture. Keeps you focused on your financial goalsīeing in control of your finances makes you more focused and more confident when it comes to reaching your financial goals. Tracking your expenses will help you stay on top of your budget and not overspend or waste money on things you don’t need. You have to control your money instead of letting your money control you. While “just go with the flow ” is not a bad motto to have, it can’t be applied to managing money (at least not if you want to keep it). Puts you in control of your financesĪs Francis Bacon said, “Money is a good servant, but a bad master.” When you are aware of expenses such as food, bills, mortgage payments, entertainment, taxes, and similar expenses, you develop better money management skills.Īpart from better managing your cash flow, reducing your tax liability, and making sure your business runs smoothly, we’ve listed 6 additional reasons why expense tracking is important. If you are a small business owner, tracking your expenditures (office supplies, utilities, salaries, subscriptions, mileage, etc.) helps you run your business smoothly and efficiently. Meticulous expense tracking can bring along a wide range of benefits. 6 Reasons why you should track your expenses Therefore, expenses, whether minor or major, should be noted and tracked to stay on top of our finances and develop better money management skills. Minor expenses only seem harmless because we don’t look at them as a whole, aggregated cost. As with cups of coffee, they seem irrelevant when you look at them separately, but when accumulated they can cause major headaches to the business owners. And perish the thought you drink mocha every morning! Expense tracking for businessesīusinesses are sometimes not aware of the huge amounts of money they give to pay credit card fees and rates (not to mention interest rates and debts due to late payments). Let’s say you purchase a cup of coffee 20 days a month - $2.70 multiplied by 20 is $54 monthly for “just” a cup of coffee now and then. Try it for yourself - the average price for a cup of coffee in the US (without milk and tip) is roughly $2.70. You may think that minor expenses such as getting a bottle of water or a cup of coffee to go seem irrelevant, but when you accumulate all those expenses monthly, the sum you get doesn’t seem irrelevant anymore. Similarly, expense tracking helps you have a clear overview of where your money goes, what expenses you can cut off, and helps you create a good weekly or monthly budget. On this blog, we talk a lot about time tracking and how it helps you become aware of how you spend your time and if you need to implement some changes in your schedule.
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