Running a small business means every rupee counts. If you don’t know where your money goes, you can’t control it. Below you’ll find the basics of expense tracking, the most common cost heads, and easy tricks to shave off waste without hurting your growth.
Most small businesses spend money in a handful of areas. Recognising these helps you set up a simple spreadsheet or app and see the big picture fast.
Rent and utilities – Whether you lease a shop or work from a co‑working space, rent is usually the top line item. Add electricity, water, internet, and you have a steady monthly outflow.
Payroll and contractor fees – Salaries, part‑time help, freelancers, and even gig‑workers fall here. Track each payment with a note on the role and hours to spot overtime spikes.
Supplies and inventory – Raw materials, packaging, office stationery – anything you buy to keep the business moving. Use a “reorder point” formula so you don’t over‑stock and tie up cash.
Marketing and advertising – Google ads, Facebook boosts, flyers, or local events. Assign a campaign name to each spend so you can measure return later.
Software and subscriptions – Accounting tools, SaaS platforms, or domain renewals. These often hide in credit‑card statements, so pull them out each month.
Travel and client entertainment – Fuel, train tickets, meals with prospects. Keep receipts and note the business purpose; otherwise the tax deduction may be denied.
Now that you know the categories, let’s look at practical moves that actually save cash.
1. Negotiate rent – If you’ve been a good tenant, ask for a modest reduction or a longer lease at a fixed rate. Landlords often prefer stability over vacancy.
2. Switch to cloud billing – Many software providers charge per user. Trim unused seats, switch to annual plans, or use free-tier alternatives where possible.
3. Automate repeat purchases – Set up auto‑reorder for inventory that moves fast. Bulk buying can lower per‑unit cost, but keep storage limits in mind.
4. Audit marketing spend monthly – Pause ads that don’t convert and re‑allocate budget to the channels that deliver leads. Simple A/B tests can reveal the winner fast.
5. Use freelancers wisely – For one‑off tasks, hire on platforms with clear rates. Avoid full‑time salaries until the workload justifies it.
6. Go paperless – Shift invoices, receipts, and reports to digital formats. Savings on printing, postage, and storage add up quickly.
7. Review subscriptions quarterly – Cancel tools you haven’t used in the last three months. Many services have hidden renewal fees that catch you off guard.
8. Leverage government schemes – In Andhra Pradesh, the Startup India program offers tax rebates and subsidised services. Check eligibility and apply early.
Keeping expenses under control isn’t a one‑time task; it’s a habit. Spend a few minutes each week updating your expense tracker, flagging any surprise spikes, and adjusting budgets. Over time you’ll see a healthier cash‑flow, more room for growth, and fewer sleepless nights worrying about money.
Ready to take charge? Open a simple spreadsheet, list the categories above, and start logging every payment today. The clearer the picture, the easier it is to cut the fluff and invest in what truly moves your business forward.
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