How to List Business Expenses
Creating an organized list of business expenses allows you to clearly identify where your money is going. This also gives you adequate information so that you can analyze your business and make decisions, such as making changes or switching to lower-cost suppliers. Aside from staying organized and assisting with your business analysis, a list of expenses helps you when preparing tax returns or even seeking financial advice.
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Instructions
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Open a computer spreadsheet software. Or, take out a business journal and pen or pencil. Examples of computer applications which can help set up your business expense list include Microsoft Excel, OpenOffice and Mac's iWork Numbers (see Resources).
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Create three columns to get your business expense list started. Label the top rows of each of these columns, from left-to-right, with the words "Description," "One-time Expense" and "Monthly Expense." The description column lists the name of the expense itself. The two columns for one-time and monthly expenses tell you whether the business expense is a capital expense–one that is for start-up or generally has one-year of life or more–or a recurring expense that gets paid every month.
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List your capital or start-up expenses first. Type the description for each capital expense in a separate row in the "Description" column. Capital expenses include those which are not deductible as standard business expenses, such as land and property, assets, and renovations and repairs for property or assets. Start-up expenses which should be listed include utility deposits, vehicles, professional and legal service fees, and license and permit fees. Write the cost of each capital expenditure or start-up expense under the column for one-time expenses.
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List the operating costs and expenses for your business. Operating costs include both variable and fixed expenses required to operate and maintain your business. These items include rent expense, monthly utilities, payroll, insurance premiums, property maintenance, raw materials, supplies and office expenses. Create a new row for each of your operating expenses, and write the appropriate description and expense cost in the appropriate column.
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List other expenses not accounted for on your worksheet. Miscellaneous expenses may include membership dues to an organization or association, tax preparation fees, business-related education expenses and other one-time or irregular expenses. Make sure to create a new row for each of these miscellaneous expenses and place the cost in the one-time expense column.
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References
Resources
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