Tracking Business Expenses 101

[mandy]

You’ve got your shiny new self-employed web work business up and running: congratulations! Now, there are things you need to do to keep it running smoothly. One of the most critical of these is keeping track of your expenses. There are two big reasons to do this. First, if you don’t know how much you’re spending on the business, you won’t know how much money you’re making (or whether you’re making any at all). Second, without tracking expenses, you won’t get the tax deductions you’re entitled to at the end of the year. (The usual caveat applies: I’m not an accountant or an attorney, so check with your own professionals to be positive about things.)

There are a few things to think about as far as the mechanics of expense tracking. First, it’s critical to not commingle your funds. That is, have a separate bank account and credit card (or piggy bank, if you insist on cash) for the business...

full article: http://webworkerdaily.com/2007/11/09/web...#more-1301