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For small business owners, managing finances is a critical aspect of ensuring sustainable growth and long-term success. One of the most important tasks is tracking business expenses accurately and efficiently. Understanding how to keep track of business expenses not only helps you stay organized but also provides a clear picture of your company’s financial health. This guide offers a comprehensive approach to managing your business expenses, with practical steps that are easy to implement and essential for your business’s financial well-being.

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What Are Business Expenses?

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Business expenses are the costs incurred during the operation of your business. These can range from everyday expenditures like office supplies and utilities to more significant costs such as payroll and marketing. Accurately tracking these expenses is crucial for understanding your cash flow, preparing for taxes, and making informed financial decisions. Knowing how to track expenses for small businesses is a foundational skill that every business owner needs to develop.

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Step 1: Open a Dedicated Business Bank Account

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The first step in keeping track of your business expenses is to separate your personal and business finances. Opening a dedicated business bank account simplifies the process of tracking expenses, as all transactions related to your business are centralized in one place. This separation is not just practical for organizations but also essential for legal and tax purposes. When you have a clear record of business-related transactions, it becomes easier to categorize expenses and prepare for tax season.

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Step 2: Choose the Right Accounting System

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Choosing the appropriate accounting system is the next critical step. You have two primary options: cash accounting and accrual accounting. Cash accounting records transactions when money changes hands, while accrual accounting records transactions when they are incurred, regardless of when payment is made. The choice between these systems depends on the size and nature of your business. For many small businesses, cash accounting is simpler and more straightforward, but accrual accounting offers a more comprehensive view of your financial situation.

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Step 3: Regularly Record and Review Your Expenses

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Consistency is key when it comes to tracking expenses. Regularly recording and reviewing your expenses helps you stay on top of your financial situation. Whether you choose to do this weekly, bi-weekly, or monthly, the important thing is to make it a routine. Regular reviews allow you to catch any discrepancies early, manage cash flow more effectively, and adjust your budget as needed.

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Step 4: Store and Organize Receipts

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Keeping accurate records of your expenses includes storing and organizing receipts. Whether you choose to maintain physical copies or digitize them using a receipt scanner, it’s essential to have a reliable system in place. Organized receipts are not only important for tracking expenses but also necessary for tax deductions and audits.

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Step 5: Categorize Your Business Expenses

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Categorizing your expenses helps you understand where your money is going and allows you to identify areas where you can cut costs. Common categories include utilities, payroll, marketing, travel, and supplies. By categorizing expenses, you can generate more accurate financial reports and make informed decisions about your business operations. This step also simplifies the process of filing taxes, as you can easily identify deductible expenses.

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Step 6: Create a Clear Expense Policy

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If your business has employees, it’s important to establish a clear expense policy. This policy should outline what qualifies as a business expense, the process for reimbursement, and any spending limits. A well-defined expense policy ensures consistency in how expenses are reported and helps prevent misunderstandings or disputes. It also streamlines the approval process for business expenses, making financial management more efficient.

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Why Regular Expense Tracking Matters

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Regular expense tracking is not just about staying organized, it’s about maintaining the financial health of your business. By keeping a close eye on your expenses, you can identify trends, manage cash flow, and make strategic decisions that will benefit your business in the long run. Moreover, accurate expense tracking is essential for tax compliance, as it ensures that you can provide the necessary documentation for deductions and audits.

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Managing your business expenses effectively is a crucial part of running a successful small business. By following these steps you can maintain control over your finances and set your business up for long-term success.

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Taking control of your business expenses is just one aspect of successful business management. For a complete solution that helps you plan, track, and grow your business, explore Modeliks. Our tools are designed to support small business owners in creating detailed business plans, financial reports, and investor presentations. Start optimizing your business operations today with Modeliks. Start your free trial!

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\n","slug":"how-to-keep-track-of-business-expenses","date":"2024-09-02T12:17:51","categories":{"nodes":[{"id":"dGVybToxNA==","name":"Financial Forecast"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoyNzc5","sourceUrl":"/images/cms/Modeliks-3-1.jpg","altText":"Modeliks guide on how to keep track of business expenses efficiently, crucial for small business financial management and growth."}},"seo":{"metaDesc":"Master how to keep track of business expenses with our essential guide. Streamline finances and ensure your small business thrives."},"modified":"2024-09-02T12:17:51","related":[{"id":"cG9zdDoxMTU0MQ==","title":"How Accountants Can Offer High-Margin Advisory Services","content":"\n

Why Advisory Services Matter for Accounting Firms

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The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.

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According to a CPA.com survey:

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This means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.

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The Challenge: Scaling Advisory Without Burning Out

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For most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows

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The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.

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The Solution: Modeliks for Advisory Services

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Modeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.

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Here’s how it works in practice:

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1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.

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2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.

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3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.

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The Impact for Accounting Firms

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Firms using Modeliks see:
New revenue streams by offering planning & reporting as premium packages
Higher client retention thanks to consistent value beyond compliance
No extra headcount required, since processes are automated
Improved positioning as trusted advisors, not just bookkeepers

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As one accountant put it:

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“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”

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Why Now Is the Time

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Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.

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If you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.

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Next Steps

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📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.

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📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

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Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"high-margin-advisory-services-accountants","date":"2025-09-02T08:30:06","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=UlQEwnWOdKQ"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTU0Mg==","sourceUrl":"/images/cms/Screenshot-2025-09-02-at-10.27.59.png","altText":"How to offer Advisory Services at High Margin?"}},"seo":{"metaDesc":"Learn how accounting firms can add high-margin advisory services without extra headcount. Discover how Modeliks helps accountants deliver financial planning, reporting, and dashboards that clients will pay more for."},"modified":"2025-09-02T08:30:10","related":null},{"id":"cG9zdDoxMTQ4Mw==","title":"How to Manage & Grow Your Professional Services Business: A Strategic Playbook","content":"\n

Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:

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The truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.

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That’s where having a structured financial planning and reporting system becomes a game-changer.

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Who is This Playbook For?

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This strategic framework is designed for:

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If you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.

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How to Grow Profitability in Professional Services

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Professional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:

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1. Plan by Project (Not Just Company-Level)

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Each project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.

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2. Track Actuals vs. Plan

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It’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.

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3. Build Scenarios

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What happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.

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4. Monitor Utilization & Capacity

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Employee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.

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How Modeliks Helps

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At Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.

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With Modeliks, you can:

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Why This Matters Now

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Most firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.

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The earlier you set up a scalable framework, the faster you can:

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Key Takeaway

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Growing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.

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That’s what this playbook is about — and why we built Modeliks.

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👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.

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📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

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Today we released a massive new update of Modeliks.  A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.  

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We listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:

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    \n
  1. Multi dimensional planning and reporting. This means that you can plan and track performance by organizational unit, whether that is business units, departments, geography, stores, projects. However your company is structured, you can have clear targets and track performance across your whole organization.
  2. \n\n\n\n
  3. Consolidation: if you plan on a business unit level, Modeliks will consolidate your financial plans upwords.
  4. \n\n\n\n
  5. Allocations: allocate costs from the head office down to the operating units. Why? Some costs are incurred in the head office, or regional offices, but should be allocated down to the operating units, in order to get a correct picture of profitability across the organization.
  6. \n\n\n\n
  7. Quickbooks integration. Connect Modeliks to your Quickbooks and have your planning and monthly reporting automated, error free and done in minutes.
  8. \n\n\n\n
  9. Account grouping. Group several accounts into one group account. For example, you can create a Utilities group account and make your Energy, heating, phone, internet, water accounts part of the utilities group. Why? Because when you plan, you don’t want to plan on every single small account that you have in your accounting system. It is too tedious and messy. So, group them logically, plan on groups, and make planning and reporting easy and useful.
  10. \n\n\n\n
  11. Initiative planning and evaluation. You have a new initiative in mind for your business? Create a business case and see how it will impact your business. If the numbers say it’s good, keep it. If not, drop it.  
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  13. Monthly forecasting. Now you can forecast up to 3 years on monthly basis.
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  15. Lastly. Speed. Modeliks is now 10 times faster than before.   
  16. \n
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And there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.

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Let’s recap. Now you can:

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    \n
  1. Build driver based financial models for any business
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  3. Do it by department, business unit, geography, stores, projects
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  5. Run scenarios and evaluate new initiatives
  6. \n\n\n\n
  7. Track actual performance vs budget, on every level in your organization. Especially easy with the Quickbooks integration
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  9. Automate monthly investor and management reporting
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  11. And write professional and detailed business plans with the help of our AI assistant.
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Enjoy Modeliks 2.0! We know we are!

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Author:
Modeliks Team

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