To track your business expenses properly, record and categorize every transaction in accounting software like QuickBooks Online, reconcile your bank accounts every month, put an approval process in place for purchases, and use an accounts payable system to track vendor bills until they’re paid. Then review your P&L regularly so you can see exactly where your money is going.
Kerry explains this through the story of Brian, an electrical contractor, on the Nail the Numbers podcast.
Meet Brian
Brian has run his electrical business for five years. He’s dedicated and doing well, but he’s struggling to keep up with his expenses. Like many owners, he can see what goes out of the bank each month, but not exactly where it’s going.