How to Track Small Business Income and Expenses in a Spreadsheet

When you run a small business or side hustle, it's easy to know what you sold and still not know what you actually earned. A simple income and expense log answers that question every month.

Log every transaction

For each sale or expense, record:

• Date
• Type (income or expense)
• Category (sales, materials, shipping, software, advertising and so on)
• Amount
• A short note

Logging on the same day you get paid or spend is the easiest habit to keep.

Use consistent categories

Pick a short list of categories and stick with it. Consistent categories mean your totals are meaningful, and month-to-month comparisons actually tell you something.

Look at profit, not just sales

Profit is income minus expenses. A month with record sales can still be a thin month if costs rose too. Your profit margin (profit as a percentage of income) shows how much of each sale you keep.

Review monthly

Once a month, look at income, expenses and profit for that month and for the year so far. Which categories grew? Which costs could you trim?

Set money aside if you need to

Some business owners like to set aside a percentage of income for later costs, such as taxes. What the right percentage is depends on your situation, so ask a qualified tax professional. A spreadsheet can then show the amount for whatever percentage you choose.

Keep receipts organized

Save receipts in a dated folder or a scanning app, and note in your log where each one is. Future you, at year end, will be grateful.

Our Small Business Income & Expense Tracker gives you an income and expense log with dropdowns, monthly income, expenses and profit for the year, totals by category, your profit margin and an optional set-aside estimate at the percentage you choose.