Budgeting and money tracking is not one of the most exciting subjects to talk about, but… Do you know how much your business is spending a month? To answer this question you need to budget and track business expenses on a regular basis.
Starting and running an online business can be very inexpensive, but that in itself can be very misleading. You might think that since you don’t have a brick and mortar location or an office to schlenk hundreds of dollars on, that your business is not costing you much.
The thing is, thinking this way can get you in trouble. You might only be spending 20 bucks here and 30 bucks there, but all of these little things add up. If your business is not making any money yet, this can put a strain on your bank account and on you.
Can you name the places where you’re spending the money to run your online business?
First thing that might pop in your head could be the hosting for your website, a pretty obvious one.
Then there is a domain registration fee and if you have a premium theme or any custom plugins on your site, you might have monthly fees for that.
If you have an email list, then you’re paying monthly fee to a provider of your email services like MailChimp, Aweber or ConvertKit.
With just these few monthly expenses you can be paying $100-200 a month and that’s just with a few of many expenses that we as online business owners pay.
If you are focused on money coming into your business, you also need to pay attention to the money that’s going out.
To get finances under control is not hard, all you need is a system and a little bit of time at least once a month to sit down and track what your expenses are.
Since you’re reading this post, let’s do it! I’ve provided you with all the tools in this post, so no worries. If you are a pen and paper kind of rebel, you can download a budget worksheet (which I grabbed from my ‘Organize Your Online Business’ e-book). You can use this link or the link at the end of this post to get it (no opt-in needed).
If you’re more into a digital goodness and spreadsheets, follow this link to access Google spreadsheet to enter all your stuff into and it will get all added up for you automagically (you will need Google/Gmail account to save it for your use).
Either one of these can be used to figure out what your budget will be for your new business (if you are just starting out) or to track your monthly expenses.
I’ve separated your expenses into the ones for a physical office (if you have one) and ones for the digital side of your business.
On the physical side of your business you can be tracking things like your office space rent, cost of the internet or postage you spend to ship your products or winnings from a giveaway you have hosted.
On the digital side I split the expenses into ones related to your website, as well as to your marketing and digital products. If your business is mostly online, you will see most of your expenses here. Hosting, email services, keyword tools, memberships, online ads, VA expenses, the list goes on.
I have also created space for expenses that don’t really fall into your general categories, like services of an accountant or a lawyer. And you will also find a space for any other expenses you might have that were not listed as a part of my list.
Once you have all the amounts filled in, you will have spaces to subtotal each of your categories and then the whole month. (the digital version of this will add these numbers for you).
I suggest tracking your business expenses at least on a monthly basis. Print one of these forms every month (I have already created 12 tabs on the digital version) and fill in the numbers.
They say what you pay attention to, grows. Keep an eye on your money to make sure none of it is wasted. I say that one of the best ways to make more money is not to spend it. As exciting it is to buy new gadgets, tools, courses and memberships, it can all cut into your bottom line.
So, if you don’t already, put together your business budget or begin tracking what you spend to run your business. Here are again are the links to the resources:
P.S. If you find this form useful, check out my complete e-book of printables, ‘Organize Your Online Business’, with 30 forms and over 60 pages of everything you need to brainstorm, plan and organize your business.