💰 How to Manage Expenses and Revenues

Managing expenses and revenues is one of the most important parts of running a successful business. It helps you stay profitable, plan for taxes, and make smart decisions. Here's a beginner-friendly guide.

🔹 1. Track Every Transaction

You need a clear record of:

• Revenue (income): Money from each of your services

• Expenses: Costs like rent, software, supplies, gas, subscriptions, etc.

Tools to use:

• 🟢 Google Sheets (simple and free)

• 🧾 QuickBooks Self-Employed, Wave, or FreshBooks (automated)

• 💳 Use one business bank account to keep things separate

🔹 2. Create Categories

Group your expenses and income for better tracking:

📥 Revenue Categories

• Photography sessions

• Web design packages

• Cricut / Glowforge products

• Admin/tech support services

• Workshops or events

📤 Expense Categories

• Rent & utilities

• Software (Squarespace, Canva, etc.)

• Advertising/Marketing

• Office supplies & printing

• Equipment (camera, Cricut, Glowforge)

• Gas & travel

• Education or subscriptions (courses, licenses)

• Misc. (bank fees, one-time purchases)

🔹 3. Use a Simple Budget Spreadsheet

Track monthly totals

🔹 4. Set Monthly Goals

• Income goal (e.g. $3,500/month)

• Expense limit (e.g. stay under $1,500)

• Profit goal (e.g. $2,000+ to save or reinvest)

🔹 5. Review Monthly

Ask:

• What services made the most money?

• Where am I spending too much?

• Can I raise prices or cut unnecessary costs?

• What can I reinvest in (training, marketing, equipment)?

🔹 6. Save for Taxes

Set aside 25–30% of your profit every month in a savings account.

✨ Example: If you earn $2,000 profit, save $500–$600 for taxes.

🔹 7. Prepare for Growth

• Use your financial data to decide when to raise prices, hire help, or invest in your space.

• Track your top clients and services to focus on what works best.