Many business owners know the importance of decreasing expenses to gain a profit; however, a large number of companies struggle to lower their costs owing to bad financial management.
Many small businesses can’t afford a full-time accountant to manage their books. With more seemingly important matters to worry about, such as bringing in profit, decreasing expenses and increasing the number of clients, bookkeeping is often neglected until the end of the month. QuickBooks offers your company business accounting software to handle your finances in an organised, professional and correct manner.
QuickBooks accounting software provides business accounting software solutions to help you easily handle your bookkeeping. We have a variety of premium accounting packages, such asQuickBooks SimpleStart, QuickBooks Pro and QuickBooks Premier, catering for small to medium-size businesses. Effective and organised financial account management can allow you to easily spot errors and discover possible problems that lie in your business. Use our software solutions to produce financial statements and reports easily and professionally.
Types of business expenses
- Capital expenses
Some costs, such as rent, water and electricity, software purchase and furnishing, are unavoidable. These costs play a significant role in getting your business off the ground and ensuring its future success. The three types of capital expenses are business start-up costs, the purchase of business assets and cost of improvements.
- Home office expenses
Many business owners work from home, where they’ve conveniently set up a workspace. If there are expenses, including depreciation, repairs, mortgage interest, Internet or utilities, you may deduct them from your company’s finances.
- Personal vehicles used for business
If you’re using your personal car for a business-related task, you may add the cost of petrol as an expense. However, if your car belongs to the company and you drive it for both personal and work purposes, the personal expense must be subtracted.
- Other expenses– Employee salaries – This is the total amount per month that you pay your employees for their services to the company.- Retirement plans – These expenses are a form of savings plan for you and your employees for retirement.- Rent – This expense is the amount your company must pay for the use of a landlord’s property.- Interest – This is the extra amount that’s added to money owed or borrowed for business activities.
Manage your accounts with QuickBooks business accounting software
Personal expenses are not classified as a business expense and shouldn’t be deducted from your company’s finances. If your business and personal expenses coincide, divide the sum between the two parts and only record the business expense with details on why the amount has been deducted and note that the other half was a personal expense.
Our wide variety of business accounting software programs can help your business produce efficient reports. With organised accounting, it’s easy to discover which expenses need to be decreased.
Choose QuickBooks for easy-to-use business accounting software to manage your books or contact us with any further questions you may have.