# How do I keep track of business expenses as a small business owner?

Run every business purchase through one separate business account, save a copy of each receipt the same day, and record each expense once a week with its date, payee, category and amount. ProfitDrawer's expense tracking guide says this habit takes about 15 minutes a week. The IRS lets you use any recordkeeping system that clearly shows your income and expenses, and in most cases you keep the records for 3 years from filing.

A simple system has five parts:

1. **One business account.** Your statement becomes a first draft of your expense list.
2. **About 10 categories** used all year, such as supplies, equipment, vehicle and fuel, advertising, software, insurance, licenses and fees, contract labor, phone and internet, and other.
3. **Same-day receipts.** Photograph paper receipts into a folder named by month (for example `2027-03`) and file email receipts in one place. For cash with no receipt, note the date, amount, payee and reason.
4. **A weekly update.** Add each new expense as one row in a spreadsheet or ledger.
5. **A monthly review.** Income minus expenses gives the month's profit; move a share into savings for tax.

If you drive for work, log each trip as you go, since mileage is often a large deduction. Lost receipts cost money: $1,500 of unrecorded supplies overstates self-employment tax by about $211.94 (1,500 x 0.9235 x 0.153), before income tax.

General information, not tax advice.

- Source: [How to Track Business Expenses: A Simple System for Small Business Owners](https://profitdrawer.com/guides/how-to-track-business-expenses.html)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Bookkeeping basics
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