The easiest way to track your finances is to use a software program. I like QuickBooks since it is easy to install and very user friendly. You do the entering and the program does the math and creates the easy to read reports for budgeting.
If you have been following my blog, you should have your statements and receipts in date order and you can start tracking them now if you haven’t already.
You can create a ledger in Excel as well which is another way to map out your financial story this year. It takes a little time to set up the format but once it is done, you can track your finances quickly and easily.
Most people are using a checking account, credit card account, and a Petty Cash account to capture every dollar spent. In QuickBooks, you enter all expenses as a check or credit card charge. All money in (income, gifts or refunds) is entered as a deposit.
Setting up account categories is a very important step. These categories should be simple to follow and easy to remember. This will help keep like expenses grouped together and bank accounts in balance. A simple list would be –
Bank Account
Petty Cash
Credit Card
Loan Account
Income
Auto Expenses Fuel Insurance Licensing Maintenance/Repairs
Bank Fees
Charity/Contributions
Clothes
Gifts
Groceries
Home Expenses – Repair/Maintenance
Medical Doctor Dentist Insurance
Office Supplies
Personal Care
Postage
Professional Fees
Repairs Building Equipment
Taxes
Telephone
Travel
Utilities
Entering receipts on a daily or weekly basis and balancing statements monthly will help you monitor the budget. You will know immediately where you are headed financially. So gather your folders and begin taking back control of your money!
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