Do you feel overwhelmed with the task of tracking your expenses? You’re not alone.

Whether you’re tracking costs for your business or for a project, an expense tracking spreadsheet can be your secret weapon. It simplifies the job of monitoring your spending, so you can identify potential savings and make informed financial decisions.

Here’s how this simple tool can help you understand where your money is going.

Why Should I Track All Small Business Expenses?

Keeping an eye on expenses isn’t just a good practice—it’s an essential tool for ensuring your small business remains financially healthy. The process helps you better project your cash flow, pinpoint ways to cut costs, and maximize tax deductions. By understanding where your money goes, you can better manage your spending and boost your profitability.

What Types of Expenses Should I Track?

Wondering what expenses should be tracked? Here’s a rundown of common areas:

• Meals and entertainment
• Office supplies
• Software subscriptions
• Marketing and advertising expenses
• Phone and internet bills
• Professional fees and subscriptions
• Education and training costs
• Equipment purchases, rentals, and repairs
• Office lease or rent
• Travel expenses
• Business licenses and permits

How well do you manage your company’s books? Here are some basic tips that will make your bookkeeping easier.

1. Keep Personal and Business Finances Separate
   This is pretty basic advice, but you might be surprised how often even seasoned business owners mess it up. Nothing catches an auditor’s attention like mixing business and personal finances. Even if you’re not audited, maintaining separate bank accounts makes reconciliation much more manageable.
   
   
2. File Expense Reports
   One way to accomplish #1 is to reimburse yourself for company expenses that you have paid personally. You should track expenses like your auto mileage, hotel stays for business or magazine subscriptions related to your business on an expense report. Then have your company pay you back. This way you get the money back into your personal account and your business gets an expense to write off.
   
   
3. Reconcile Accounts Monthly
   Reconcile your bank, credit card, and other financial statements promptly. Staying on top of your accounts allows you to catch errors quickly and makes reconciliation more manageable.
   
   
4. Don’t Miss Tax DeadlinesFriends forgive. Spouses forgive. The IRS doesn’t forgive. And they levy hefty penalties and interest. If you’re unsure about the IRS’s deadlines for 2023, you can find them here. Don’t forget to check with the tax authority in the state where your business is located for their tax deadlines.
   
   
5. Invoice Customers Immediately
   The sooner they see an invoice, the sooner they’ll pay (usually). Prompt payment helps your cash flow.
   
   
6. Watch Your Receivables
   Collections calls are always awkward, but waiting can get you into a cash flow crunch and limit your ability to invest in your business. And, if it’s possible, get all or part of the payment up front.
   
   
7. Track Cash Transactions Carefully
   Most bookkeeping programs have easy ways to track cash. Doing so will make your accountant happy and give an auditor less to scrutinize.
   
   
8. Focus on Bank Transactions, Not on Receipts
   Bank transactions are the backbone of your financial systems. So, while your receipts and bank transactions should match, the bank records rule.
   
   
9. Save Your Receipts
   If you’re audited, receipts will provide much more information about your purchases than a bank transaction can. So keep that shoebox handy. And if it is getting full, check out this article to see how long you need to hang onto paper records. Or better yet…
   
   
10. Let Your Bookkeeper and Accounting Software Make Life Easier
    Make sure you’re taking full advantage of your accounting system by using automation, mobile apps, and any other feature that can help scan receipts, categorize expenses, and generally make things easy. To learn about managing your books with software, a bookkeeper or both, read “Do You Need a Bookkeeper?”
    
    

For more tips for running and growing your small business, visit Index by Pinger.

Do you remember when you started your business? How exciting it was to learn new things and take on new challenges? For most of us, the excitement was about things like creating new products or services, building a website, and working with customers. It was less about managing the books.

But whether you run a lemonade stand, a sophisticated technology company or something in between, you need to keep your books and finances to grow your business.

So, how do you know if you need a bookkeeper for your small business?

Why Bookkeeping Matters for Small Businesses

• Track customer payments and know if they are late.
• Ensure you’re charging enough—are you covering all the costs of servicing your customers? It isn’t easy to know without tracking expenses.
• Pay others promptly. Employees, contractors, vendors, and government agencies must be paid on time.
• Manage your business’s income and expenses. Is it time to cut costs or raise rates?
• Know if your business is profitable.
• File your sales and business tax returns.
  
  

Of course, you’ll also need your business records to be accurate when bringing on a business partner, applying for a loan or grant, or selling your business. So, it’s not a question of whether your financial records must be kept flawlessly. It’s a question of who does it and what it costs. 

Bookkeeper, Accounting Software, or Both?

Bookkeepers and bookkeeping software can manage a lot of the accounting work. But regardless of whether you hire a bookkeeper, pay for a bookkeeping service or do both, you still need to be involved in setting the business and financial goals, deciding what to track, authorizing payments, reviewing reports and making decisions based on those reports.

The Pros of Hiring a Bookkeeper

There are several advantages to hiring a bookkeeper. Here are a few:

• Save time
  Hiring a bookkeeper can free up your time to focus on other areas of your business that you enjoy or feel more competent handling, or it can help you bring in more money.
• Decrease paperwork
  A competent accountant can manage your bookkeeping paperwork, whether the records are hard copy or digital. Just make sure you know where physical files are and the passwords for digital files.
• Fewer headaches
  Suppose your business is complicated. You may have many products or services, sell products in multiple locations with different sales tax policies, or have employees in multiple states. In such situations, getting a bookkeeper to help you manage is wise.
  

Accounting Software

Today’s accounting software options make it easier than ever to manage your books. You may want to save some money and do it yourself if:

• Your bookkeeping is simple. Your business is simple enough or small enough that you can easily manage your books yourself.
• You’re comfortable using accounting programs like QuickBooks or FreshBooks, or you have pro-level Excel skills.
• You don’t want to risk having your sensitive financial and banking data falling into the wrong hands.

What About “Hybrid” Bookkeeping?

A hybrid solution to managing your accounting may be the right fit for your small businesses. As a business owner, you can handle the day-to-day bookkeeping using accounting software and have an outside bookkeeper come in periodically to balance accounts, correct any accounting errors, file sales tax reports, and produce basic accounting reports.

The advantages of a hybrid bookkeeping solution include:

• Cost savings
  You’ll reduce the time you need from a bookkeeper consultant or a bookkeeping service.
• Fewer mistakes
  When it comes to tracking your accounting records, mistakes can be costly. So having another set of eyes on your books is smart.
  
• Time savings
  Having a bookkeeper check your work and provide critical reports for your business planning will save you precious time to spend on other areas of your business.
  
• Easier tax prep
  When it’s time to file your taxes, having a bookkeeper prepare all the reports that your tax advisor needs will save you time.
  

How Can I Find a Bookkeeper?

Finding a bookkeeper can be challenging if you don’t have a friend or relative who’s a bookkeeper or accountant. Try asking your tax accountant or similar small businesses for recommendations. But before you do, consider what type of bookkeeper you prefer.

• Freelancers
  Freelance bookkeepers are usually relatively inexpensive. They generally charge an hourly rate or a fixed monthly fee. They can also be convenient: a local bookkeeper can visit your office and deal with paper receipts and invoices, so you don’t have to transmit these documents to someone working remotely.
• Firms
  Bookkeeping firms can be a more expensive option. However, because firms are larger enterprises, they typically have a range of experts to handle various levels of accounting. Plus, they are less likely to experience bottlenecks during busy periods.
• Online services
  An online bookkeeping service is often the lowest-cost option. These companies connect directly with your accounting software, bank, and tax accountant. Because they typically have a large staff and more resources, they should be able to provide services even during busy times. The better services enable you to communicate directly with a live bookkeeper.
  
  To learn more about online bookkeeping resources, check out NerdWallet’s evaluation of the top online bookkeeping services, including Quicken Live, Bookkeeper360, and Merritt Bookkeeping. 

Finding a bookkeeper can be challenging if you don’t have a friend or relative who’s a bookkeeper or accountant. Try asking your tax accountant or similar small businesses for recommendations. But before you do, consider what type of bookkeeper you prefer.

Bookkeepers vs. Accountants and CPAs

If it’s not already evident, bookkeepers and bookkeeping software can help small businesses with the day-to-day and month-to-month financial tracking and reporting that helps your business succeed.

However, bookkeepers and software cannot give you the financial and tax strategies you can get from an accountant or CPA.

If you found this article interesting, you should check out “10 Bookkeeping Tips for Small Business.”

For more tips for running and growing your small business, visit Index by Pinger.

In Portland, Oregon, there is a legendary bookstore called Powell’s City of Books. And a city it practically is. Taking up an entire city block and four stories high, Powell’s is a treasure trove of new, used, popular, and obscure books. With over one million titles, it’s one of the world’s largest sellers of new and used books and one of Portland’s most beloved small businesses.

Powell’s has earned this distinction for its excellent book selection but also for its great staff, superior customer service, and overall involvement in the community.

My pal Sarah wandered into Powell’s one rainy afternoon, searching for an out-of-print novel that held sentimental value for her. Although the book was nowhere to be found on the shelves, a staff member named Alex did not simply apologize and send Sarah on her way. Instead, Alex embarked on a mission to find that book.

Alex reached out to other bookshops and tapped into online communities. It took him a week, but he tracked down the elusive novel. But going the extra mile made Sarah a Powell’s customer for life and turned her into a passionate advocate for that bookstore.

I love this story for many reasons, primarily because it demonstrates what it takes to make a customer fall in love with a business. So, how can we do that?

5 Steps to Build Customer Loyalty

1. Be great at what you do:

   People hire you to do a service for them, or they go into your shop or online store to buy something from you. If your product or service is average, or meh, they may be back; they may even become a regular . . . or they may not.

   But what if you were great at what you do for your customers?

   What if you went the extra mile to be the best? If you sell flowers, what if you make exceptional arrangements every time? If you cook, what if you prepare meals with the best ingredients and a dash of love? Or what if you treated your customers like an electrician recently treated me? I hired him off Craigslist. He came over, did the job, and checked a few extra things around the house. He found a dangerous short that could have caused a fire.

   He’s my electrician for good.
   
   

2. Shower the ones you love with love:

   Love is a two-way street. Like Alex, the employee at Powell’s, you can show your customers that you care by providing outstanding service. Whether yours is a high-end boutique or an organic grocery, going above and beyond makes your customers feel special, fostering loyalty like a lasting romance.

   What does this look like? How about gift-wrapping a customer’s special purchase? Or working late so that you can fix your client’s hair right before the “big event”? Going that extra mile makes your business unique and helps customers fall in love with you.
   
   

3. Share the love with your team:

   I recently saw a survey that found that the best small businesses have one thing in common: The owners are great managers. They take good care of their employees and let them know they’re special.

   Perhaps it’s an unexpected day off. A gift card to a local restaurant. Or a bonus. By treating your employees well, you make them happy. And happy employees create loyal customers.
   
   

4. Sweeten the deal with a little something extra:

   Relationships, both personal and professional, thrive on thoughtful gestures. So, surprise your customers by adding extra value.

   Whether it is a freebie service, a discount card, or free shipping, giving customers a little extra TLC creates a lasting good impression.
   
   

5. Express your thanks:

   Great businesses express their gratitude sincerely and often. This lets customers know they are more than just a transaction—they are the heart and soul of your business.

   You could do something as simple as texting them a message expressing your appreciation. (Check out the Index by Pinger app to see how you can easily track customer preferences and create text templates for sending quick messages of appreciation.)

   Or you could give your best customers a small gift to make their day. Whether big or small, thoughtful gestures that demonstrate your gratitude can go a long way.

For most of us, it’s natural to want to show our appreciation to loved ones and friends. Extending that appreciation to employees and customers can create personally satisfying and professionally rewarding relationships.

And here’s a bonus tip: Just like with any show of affection, it doesn’t hurt to put some reminders in your calendar to “share your love” throughout the year.

If you like this piece, check out my article “Making It Personal: Your Small Business Superpower.” And to learn more tips for running and growing your small business, visit the resource page at Index by Pinger.

How do they do it? How does a small business (on a small budget) bond with its customers as well as—or better than—giant corporations with their massive social media and advertising campaigns?

It’s about relationships. The small businesses I most enjoy patronizing take the time to build relationships with their customers, which results in repeat business, referrals, and positive reviews.

5 Ways to Build Your Small Business’s Customer Relationship Capital

1. Human Connection

   Some business owners have a knack for making you feel like a friend, not just a customer. They don’t just holler, “Let me know if you need anything,” from across the store. They greet you with a genuine smile and words that feel personal, unlike those coming from a standard sales script.

   They pay attention to body language and respond appropriately. Do I want help and advice? Do I want to be left alone? Should they ask a question or two to help me zero in on something I might like? They seem to know.

   When appropriate, they share personal stories and invite me to do the same, so we have a conversation, not just a transaction.

   My purchase (or their service) becomes a personal experience. Even their websites have a personal vibe.

   Not long ago, I was in a local shop buying some clothing for my daughter’s birthday, and somehow the owner and I ended up talking about our weddings. I have no idea how she brought that up and the conversation didn’t last longer than twenty seconds, but here I am, weeks later, remembering that moment and writing about it.

   Since then, I’ve been to dozens of grocery stores, restaurants, drug stores, and retail shops, and I’ve forgotten about most of them. But I remember that store and that transaction clearly, and her shop will be my first stop the next time I’m looking for a present for my daughter.

   And their written communication also has that personal touch. Their words and phrasing reveal their personalities and reflect how they value their customers (including me).

   My favorite small businesses write like that friend. Their newsletters, marketing emails, and texts convey the business’s (or owner’s) personality. They are filled with local references that remind me of everything we have in common.

   They don’t just push products. They remind me of why I like doing business with them.
   
   

2. Service Oriented
   

   People who are good at working with customers don’t see themselves as subservient; they see themselves as customer advocates. When they interact with a customer—in person, online, by text, or by phone—it’s with a sincere desire to help. And when you’re the customer, you can feel the difference.

   A service mindset is not the same as being overly flattering or clingy. It’s listening carefully, identifying customers’ needs, and making them happy.

   Companies big and small that have a service mindset empower their employees to put their customers first. They avoid too many rules or policies and instead encourage their employees to take care of each customer’s needs the best way they can.
   
   

3. Professional and Approachable
   

   My favorite small businesses look sharp. They have nicely designed logos, web pages, and signs that convey a little personality. Like large companies, they have well-marked vehicles, consistent branding, and clean and pleasant showrooms or shops. They look every bit as professional as their bigger competitors, and they make a good impression.

   But they can also get to know their customers and anticipate their needs.

   Even though they look every bit as professional as larger companies, their smaller size gives them the freedom to exercise their service mindset in creative ways.
   
   

4. Admit Mistakes
   

   Customers often expect perfection, and when things go wrong, they may blame you.

   So, when the person in front of them (or on the phone with them) says, “I’m sorry we made a mistake, and we want to make things right,” it defuses the situation immediately. And when a small businessperson enlists the customer’s help finding a solution, they can turn a potentially unpleasant conversation into a satisfying one.

   The other day, I got an email from a small company saying the product I ordered would be delayed and cost more than they initially stated. But the email began with an apology for the error and explained what went wrong. It gave me options and let me choose the way forward.

   And the note made me feel like the person writing it cared. So, we worked out a solution that made me happy.
   
   

5. Use Technology Well
   

   I saved this for last because technology works best when small businesses have mastered the other five things.

   When a small business has adopted a service mindset and communicates in a relatable, human way, technology can help them get more done without sacrificing the personality and localism that makes them stand out.

   Every time a customer schedules an appointment, receives an invoice, or is prompted to write a review, it’s an opportunity for the company to express its personality and commitment to customer service.

   Smart small businesses see every piece of communication as an opportunity to do two things: conduct some business and remind the customer why they like the company.

   Fortunately, Index by Pinger makes it easy for you to foster this personal relationship with your customers and build your business’s “relationship capital.”

The Beatles said that “money can’t buy me love,” and they were probably right. But when small businesses show their customers some love, they just might end up making more money.

For more tips on running and growing your small business, visit the Index Small Business Resource Center.

You know when you’ve caught the entrepreneurial bug. It won’t let you go no matter what you do or what tonic you take. Wanting to start a small business is exciting and challenging because once you have the proverbial entrepreneurial fire in your belly, the only way to relieve it is to start your dream business. 

Lucky you!

Becoming an entrepreneur is fun and exciting, but the smart entrepreneur is methodical. Here is a 10-step checklist to help you turn your business dream into a solid reality.

10 Steps to Get Your Small Business Started

1. Choose the right niche.
   

   Every successful business starts with a unique offering. What makes your intended product or service different, better, or unique? No, you need not (and should not) reinvent the wheel, but you should have some sort of X-factor that will make your new business different and better. What are prospective customers looking for that you can deliver?

   Also, consider your skill set. What do you bring to the party? Your business should take advantage of your best asset—you.

2. Do your homework.
   Don’t be like the baker who throws ingredients together without a recipe. Instead, research your market, talk to potential customers, and see what the competition is up to. Come up with a sound strategy for success.

3. Determine how will you make money?
   Will you sell to consumers or other businesses? Will you partner with businesses to sell your products or offer a subscription service? Figure out your revenue streams.

4. Write your small business plan.
   

   A pilot would never fly from Los Angeles to New York without a flight plan. They need to know what direction to head in, how much fuel they’ll need, the weather forecast, and other factors. That’s what your business plan is: a flight plan for your business direction and a successful landing. The plan tells you how to get to where you want to go.

   So, outline your goals, strategies, and financial projections. This plan will be your guiding light and help you secure funding, impress investors, and stay on track. You may want to read “Creating a Business Plan for Your Small Business.”

5. Get funded.
   Launching a small business takes money. Whether you’re bootstrapping, seeking investors, or applying for SBA loans, you need to figure out how you will finance your dream. Check out my blog on how to find funding here.

6. Make it legal.
   Research your local regulations, obtain the necessary permits, and keep your business squeaky clean, both literally and legally. Do an initial check-in with a lawyer and CPA to decide whether to run your business as a sole proprietorship, create a limited liability corporation (LLC), or incorporate. Remember, prevention is always better than a legal or tax headache. Check out “The ABCs of LLCs” or watch this video for more information.

7. Embrace technology.
   

   In today’s digital age, having the right tools is essential. Customers will expect it and employees will demand it, so you need to invest in technology to make your business leaner and better. 

   For example, check out the Index app from our friends at Pinger. Index is a mobile phone app that can help you run your business more efficiently, communicate with customers more easily, and grow your business almost effortlessly.
   
   

8. Assemble your dream team.
   Do you have the skills to code your company website, master social media, or balance the books? Identify the skills you have and the ones you need, and then build your team accordingly.
   
   
9. Market your business, and then market it some more.
   The only way to get people to know about your new business is to market the heck out of it. Let them know you are out there! Embrace the power of social media, build a great website, and explore creative marketing channels to spread the word. Check out my short video on marketing for more ideas.
   
   
10. Think ahead.
    Launching your business is just the beginning. Be prepared to adapt. Learn from your mistakes, and constantly improve your offerings. Keep your eyes on the prize, gather feedback, and keep experimenting.

And finally . . . throw that Grand Opening party. You earned it.

To learn more tips for running and growing your small business, visit the resource page at Index by Pinger.