Tracking Business Expenses

Untracked small expenses quietly add up and erode profitability. Disciplined expense tracking reveals exactly where money goes and where to cut costs.

• Categorize consistently: Use the same expense categories every month (e.g. transport, supplies, rent, utilities) so comparisons are meaningful over time.
• Keep every receipt: Physical or photographed — needed to verify expenses and resolve any disputes.
• Review regularly: A monthly review of expense categories often reveals surprising costs (e.g. unnecessary subscriptions, high transport costs) worth addressing.
• Distinguish fixed vs variable expenses: Fixed costs (rent) stay constant; variable costs (materials) scale with business activity — useful for planning.

Practical Skill: Categorize a month's worth of sample expenses and identify the top 2 categories where costs could realistically be reduced.

=== MONTHLY EXPENSE BREAKDOWN ===  Category         Amount (SSP)   % of Total   Fixed/Variable  Rent                 50,000        18%         Fixed  Transport            45,000        17%         Variable  Supplies             80,000        30%         Variable  Salaries            160,000        59%         Fixed  Airtime/Data         15,000         6%         Variable Note: percentages here are illustrative — always calculateagainst YOUR actual total expenses. Top 2 categories to review for savings:  1. _____________________________________________________  2. _____________________________________________________