Expense Tracker Template: Free Download | Track Business Expenses
Seller Bookkeeping

Expense Tracker: Complete Business Expenses Template

Track Business Expenses - Free expense tracker template to monitor and categorize all business spending

Download Expense Tracker Now
Updated: November 2025 Read Time: 12 minutes Topic: Expense Management

Why Expense Tracking Matters

Expense tracking is the foundation of business financial management. By systematically recording every business expense—from product purchases to software subscriptions—you gain visibility into where your money is going, identify cost-saving opportunities, and ensure you're capturing all deductible expenses for tax purposes. Without proper expense tracking, you're leaving money on the table through missed deductions and poor spending visibility.

Key Insight: Businesses that track expenses systematically save an average of 15-25% annually through identified waste and optimization. Additionally, proper expense tracking captures $3,000-8,000+ in missed tax deductions per year for typical online sellers.

Types of Business Expenses to Track

  • Product Costs: Inventory purchases, manufacturing, wholesale procurement
  • Shipping & Logistics: Inbound freight, packaging, outbound shipping, warehousing
  • Platform Fees: Amazon referral fees, Shopify payments, Etsy platform fees, transaction fees
  • Advertising & Marketing: Google Ads, Facebook ads, sponsored products, influencer marketing
  • Technology & Software: Accounting software, email marketing, project management, design tools
  • Utilities & Office: Internet, electricity, phone, office supplies, equipment
  • Vehicle & Travel: Mileage, fuel, vehicle maintenance, business travel
  • Professional Services: Accounting, legal, bookkeeping, consulting
  • Insurance: Business liability, product insurance, health insurance premiums
  • Miscellaneous: Training, subscriptions, licenses, permits

What's Included in Our Expense Tracker

  • Pre-categorized Expense Types: 25+ standard business expense categories
  • Monthly Tracking: Log expenses daily, organized by month with automatic subtotals
  • Categorization System: Organize expenses by department, platform, or tax category
  • Date & Description Columns: Track when expenses occurred and what they were for
  • Amount Tracking: Record expense amount and payment method
  • Auto-calculations: Automatic category totals and comparison to budget
  • Percentage Analysis: Shows each expense category as percentage of total spending
  • Monthly Comparison: Spot spending trends and unusual spikes
  • Tax Category Tags: Mark expenses as deductible for easy tax preparation
  • Receipt Attachment Space: Notes field for receipt reference

How to Use the Expense Tracker

Step 1: Set Up Categories

Review the pre-loaded expense categories and customize as needed for your business. Add category sub-codes (e.g., Ads-Google, Ads-Amazon, Ads-Facebook) for more detailed tracking.

Step 2: Daily Entry Habit

Enter expenses daily or as they occur. Record date, expense category, description, amount, and payment method. This real-time tracking is more accurate than waiting to reconcile at month-end.

Step 3: Weekly Review

Review the weekly expense total. Look for unusual amounts or misclassified expenses. Fix any errors immediately before they compound.

Step 4: Monthly Reconciliation

At month-end, verify total expenses match your bank statement and credit card statements. Reconcile any discrepancies. Review category breakdowns to understand your spending.

Step 5: Analysis & Action

Identify the top 3 expense categories consuming your budget. Ask: Can I reduce this expense? Is it providing ROI? Use insights to optimize spending and improve profitability.

Expense Tracking Best Practices

  • Separate Business & Personal: Never mix business and personal expenses. Use separate credit cards and bank accounts
  • Keep Receipts: IRS requires supporting documentation for expenses. Keep all receipts for 3-7 years
  • Track Mileage: Business mileage (68.5¢/mile in 2024) is deductible. Maintain a mileage log
  • Categorize Accurately: Correct categorization ensures accurate P&L and tax reporting
  • Monitor Budget: Compare actual spending to budgeted amounts monthly. Investigate variances
  • Use Payment Methods Strategically: Credit card payments create automatic records. Track cash expenses in real-time

Expense Categories Explained

CategoryExamplesDeductible?Notes
COGSProduct purchases, manufacturing100%Essential for accurate profit calculations
AdvertisingGoogle Ads, social media ads100%Track per platform for ROI analysis
SoftwareAccounting, email, project management100%Monthly subscriptions are fully deductible
ShippingInbound freight, packaging materials100% (if to warehouse)Part of COGS if shipping to warehouse; different if to customer
Office SuppliesPens, paper, envelopes100%Under $2,500 per item considered expense vs. asset
VehicleMileage, fuel, maintenanceBusiness use %68.5¢/mile standard deduction or actual expenses
Professional ServicesAccounting, legal, consulting100%Keep invoices for documentation
UtilitiesInternet, electricity, phoneBusiness use %Allocate business percentage if shared use

Download Our Free Expense Tracker

Choose your preferred format and start tracking expenses today:

  • Monthly Expense Tracker (Excel): 12-month view with automatic category totals
  • Daily Expense Tracker (Excel): Day-by-day logging for detailed tracking
  • Monthly Expense Tracker (Google Sheets): Cloud-based, real-time sharing with team
  • Annual Summary (Excel): Year-end view with quarterly comparisons

Download All Expense Templates (ZIP)

Expense Tracking Facts

15-25%

Annual savings from systematic expense tracking

$3-8K

Missed tax deductions per year for sellers

3-7 Years

How long to keep expense documentation

15-30 mins

Weekly time to track and review expenses

25+

Common business expense categories to track

68.5¢

2024 IRS mileage deduction rate (business)

Expense Tracking Questions

How often should I track expenses?

Daily is ideal for accuracy. Enter expenses as they occur or at least weekly. Monthly reconciliation against bank statements is required. Daily tracking takes 5-10 minutes and ensures nothing falls through the cracks.

What expenses are tax deductible?

Any ordinary and necessary business expense is deductible: product costs, software, advertising, vehicle mileage, home office, professional services, etc. The key test: Would a reasonable business person incur this expense? Personal expenses (groceries, gym) are not deductible.

How do I handle mixed personal/business expenses?

Allocate the business percentage. Example: Internet bill is $100/month but 60% business use = $60 deductible. Utilities, phone, vehicles can be partially deductible. Always document the allocation percentage and keep it consistent.

What if I spend money from personal account?

Ideally, use a business account and credit card. If you must spend from personal funds, document it thoroughly with receipts. Enter it in your expense tracker anyway—it's still deductible. Keep a receipt and your expense record for 3-7 years.

Can I deduct my home office?

Yes. Two methods: Simplified ($5/sq.ft., max $1,500/year) or regular (actual utility/rent/insurance allocation). Your home office must be used exclusively for business. Both methods track utilities, internet, rent allocation, and maintenance as expenses.

How do I track advertising across platforms?

Create sub-categories: Ads-Google, Ads-Amazon, Ads-Facebook, etc. Track each platform separately so you can analyze ROI per channel. Your expense tracker should allow detailed categorization for precise business analysis.

Should I separate COGS from other expenses?

Yes, absolutely. COGS (product cost, inbound shipping, packaging) is separated from operating expenses (advertising, rent, utilities) in your P&L. Use your expense tracker to categorize expenses appropriately for accurate profitability analysis.