Why Tracking Expenses Matters
Every dollar your business spends tells a story. Tracking expenses isn’t just about staying organised — it’s about understanding where your money goes, maximising your tax deductions, and making smarter business decisions.
Without proper expense tracking, you might:
- Overpay on taxes by missing legitimate deductions
- Lose track of subscriptions you no longer use
- Miss the fact that a particular cost is eating into your margins
- Struggle to get a loan because your records are incomplete
Categories That Make Sense
Good expense categories help you see patterns and prepare for tax time. Here are common categories most small businesses need:
Operating Expenses
- Rent & Utilities — office space, electricity, internet
- Software & Subscriptions — tools and platforms you use
- Office Supplies — stationery, printer ink, desk supplies
- Insurance — business liability, professional indemnity
Cost of Goods Sold
- Materials — raw materials or components
- Subcontractors — outsourced work related to client delivery
- Shipping & Freight — delivery costs for products
Sales & Marketing
- Advertising — online ads, print ads, sponsorships
- Marketing Tools — email platforms, design tools
- Networking & Events — conferences, trade shows, memberships
Travel & Transport
- Fuel & Mileage — business-related driving
- Flights & Accommodation — business travel
- Meals — client meetings and business meals (check deductibility rules)
Professional Services
- Accounting & Legal — accountant fees, legal advice
- Consulting — business advisors or specialists
Tips for Choosing Categories
- Match your tax return. Use categories that align with what your tax authority expects. Your accountant can help with this.
- Don’t over-categorise. 10-20 categories is usually enough. “Office Supplies” is fine — you don’t need separate categories for pens and paper.
- Be consistent. Always categorise similar expenses the same way. If you put a software subscription under “Software” in January, don’t put it under “Office Expenses” in February.
Managing Receipts
Receipts are your proof of purchase. Without them, you may not be able to claim deductions.
Go Digital
- Snap photos of paper receipts immediately. Paper fades. Phones don’t (usually).
- Use email receipts. Most vendors send digital receipts — keep them in a dedicated folder.
- Store them with the transaction. Attach the receipt to the expense in your bookkeeping system.
What to Keep
As a general rule, keep receipts for:
- Any purchase over a small threshold (check your local rules)
- All meals and entertainment expenses
- Travel expenses
- Any expense that might be questioned during an audit
How Long to Keep Them
Most tax authorities require you to keep records for 5-7 years. Check your local requirements.
Fastbooks lets you upload and attach receipts directly to expenses, so everything stays in one place — searchable, organised, and ready for tax time or audit.