Give each expense one row with the date, who you paid, a category, the amount and a short note, use the same list of about 10 categories all year, then total by month and by category. A ProfitDrawer bookkeeping spreadsheet sets this up as an Expenses tab with category dropdowns and monthly totals in Google Sheets or Excel. If fuel rows add up to $310 in March and $290 in April, you see the trend and already have tax-time totals.
A basic expense sheet needs these columns:
| Date | Paid to | Category | Amount | Note |
|---|---|---|---|---|
| 03/02 | Supply store | Supplies | $86.40 | Spray bottles |
| 03/04 | Gas station | Vehicle and fuel | $52.10 | Route to clients |
Tips that keep it usable:
- Use a drop-down list for the category column so spelling stays the same.
- Total each category with SUMIF, for example
=SUMIF(C:C,"Supplies",D:D). - Add a column with a link to the receipt photo in your Google Drive.
- Freeze the header row and keep one row per purchase, never one row per day.
- Update it once a week from your bank statement and receipts folder.
Keep business and personal spending apart. If one card is used for both, mark personal rows clearly or leave them out, so they do not reduce your profit. The receipts themselves still need to be kept, since the spreadsheet only summarizes them.
Source: How to Track Business Expenses: A Simple System for Small Business Owners · Updated
Tools and spreadsheets for this
Related questions
- How do I keep track of business expenses as a small business owner?
- Is a spreadsheet good enough for small business bookkeeping?
- How do I add a drop-down list in Google Sheets?
- How do I use SUMIF to total expenses by category?
- What is in a ProfitDrawer bookkeeping spreadsheet?
- What business expenses are tax deductible?
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.