Tracking business expenses when you use one bank account
Plenty of small business owners pay for everything from one account. Here's a simple habit that keeps business spending clear anyway.
· 4 min read
If you pay for groceries and printer ink from the same debit card, you're not alone. Many small business owners, especially in the first year, run everything through one personal account. It works, but at tax time it turns into an afternoon of guessing.
The two-minute habit
Every time you spend money on the business, log it the same day. That's it. Write down:
- The amount
- The date
- Who you paid (the store or vendor)
- What it was for (a category like supplies, marketing, or travel)
If you have a receipt, snap a photo of it. If you don't, a quick note is enough.
Pick a handful of categories
You don't need an accountant's chart of accounts. Five to eight categories cover most small businesses:
| Category | Examples |
|---|---|
| Supplies | Ingredients, packaging, office supplies |
| Equipment | Tools, a laptop, a mixer |
| Marketing | Flyers, ads, your website |
| Travel | Mileage, parking, delivery runs |
| Software | Booking apps, accounting tools |
| Fees | Licenses, bank fees, card processing |
Look at the totals once a month
At the end of each month, add up each category. You'll quickly see where the money goes, and whether anything surprises you. That monthly look is where most of the value comes from.
When to open a separate account
Once the business has regular income, a separate business checking account makes everything easier, and many banks offer free ones for small businesses. Until then, the daily habit does the job.
SRK Traction's free tools include a simple income and expense log: add an entry in seconds and see your monthly totals by category.