Are you considering hiring an accountant to organize that messy stack of bills on your desk? No need! Well, obviously you do need to properly track your spending, but there’s a simpler and more budget-friendly way to do that. Using FreshBooks, you can save any expense in a minute and have them all automatically categorized in one place.
As a small business or start up, you may not have so many bills at first. But once your business starts growing, it is important to focus on your expense as much as your profit.
Now follow these steps to start recording your expenses on FreshBooks:
First, sign into your account on the FreshBooks app.
1. Head to the Expenses tab at the bottom
Click on the green ‘+’ sign to create a new expense
2. Attach Receipt
You can ‘take a photo’ of the receipt on spot, or ‘upload from gallery’.
This will allow you to keep record of the official document, instead of looking for it later on in your pile of papers.
3. Choose a Category for your Expense
In the first row, you can swipe left to go through the categories. You can also press on ‘More’ for additional and more detailed categories.
For example, you can choose the ‘Travel’ category which is more general. Or choose one of the subcategories underneath it such as ‘Airfare’, if you want more detailed segregation of your spending.
You can also search for a category so you don’t waste time scrolling through them one by one. However, you cannot create your own.
4. Add a Merchant
Fill out the name of the company or supplier you’re buying from.
Merchants will be saved automatically in your history for future use.
5. Add a Purpose of Expense
This is mostly for your reference, in case you want to refer back to where your money is going.
6. Add Tax
You can choose from existing tax or create a new tax percentage.
7. Add Expense Amount
Next to ‘grand total’, click on the amount (0.00) and fill out the total cost (including tax, as it will be calculated automatically according to the percentage of tax you added).
Additional Options for your Expense:
Mark as Billable
Enable this option if the expense will be invoiced to a client later on.
When enabled, you will need to:
- Choose a client from your existing clientele list.
- Enable include image of the receipt if you want to add it when invoicing your client.
- Add a mark up by ticking the button and fill in the percentage you want to add to the total amount.
Mark it as Cost of Goods Sold
Enable this setting if it’s an expense associated with a client’s cost.
When generating financial reports in the future, this will categorize the expense under ‘income: cost of goods sold’ instead of ‘operating expenses’.
Another option will pop-up to ‘always mark expenses in this category as cost of goods sold’.
This is a useful feature if your merchant is using a different currency than your default one.
8. Save your Expense
Click on save button at the top right corner, then it will direct you to the summary of your expense for you to review.
You can edit your expense by clicking on the pencil icon at the top button if needed.
You can also delete an expense by pressing on the 3 dots icon and then delete.
9. Duplicate an Expense
You don’t have to create a new expense from scratch every single time. Sometimes you will encounter similar expenses from merchants, so instead of wasting your time, you can simply duplicate a previous expense.
Go to the Expenses tab and click on the one you want to use again.
Head to the 3 dots icon on the top right corner and click on ‘duplicate’.
You will be directed to the new copy of the expense, with the exact details filled out. You can edit it if there are any alterations, or keep it as is and save it immediately.
Now you can go ahead and check out How to Invoice an Expense to a Client on FreshBooks
Learn other features on FreshBooks and stay on top of your finances:
How to Add Payments on FreshBooks
How to Create a Proposal on FreshBooks
What’s the Difference Between Estimate and Proposal on FreshBooks
How to Add a Client and Manage Clients on FreshBooks
What’s a Retainer and How to Manage Retainers on FreshBooks
How to Create a Project and Manage Projects on FreshBooks
How to Add Credit on FreshBooks
What’s Other Income on FreshBooks
How to Add a Team Member on FreshBooks