Managing business expenses and spend

Every business has leaks. Little costs that sneak out quietly and nibble at your profit. Tracking expenses isn’t just about keeping SARS happy. It’s how you make sure your money’s working for you, not against you.

Why tracking expenses keeps your business healthy

• Expenses reduce taxable income. The more accurately you record them, the more accurate your tax will be.
• Not every outflow is an expense. Drawings, fines, and loan repayments don’t count.
• Good tracking helps you make better calls. Clean records show where your money’s actually going and help you budget like a boss.
• If you miss expenses or lump things in the wrong place, your reports can tell a half-truth. That can mean paying too much tax or making decisions on sketchy info.

How to track expenses in stub

• Record expenses as soon as you can, ideally the same day.
• Add the category, description, amount, date, payment method, and supplier.
• Snap and upload receipts or invoices. Digital copies are perfect.
• Do a weekly tidy-up for uncategorised items before they pile up.

Example: you forget to log R300 worth of nail polish for your salon. Six months later, your profit looks off and you’re squinting at your reports. Moral of the story? Log it now, thank yourself later.

Tips for smarter expense management

• Keep personal spend separate. Log it as Drawings, not expenses.
• Handle VAT properly. Input VAT (on purchases) is recoverable and tracked separately. Output VAT (on sales) sits as a liability until you pay it over.
• Ditch the shoebox. File receipts digitally in stub where they’re safe and searchable.
• Watch for expense creep. Subscriptions and “tiny” costs multiply fast. Scan your categories monthly to catch any freeloaders.

When you track expenses consistently, your Profit & Loss tells the real story, your tax lines up, and you get a clear picture of how your business is actually doing, not just how it feels.