The Survival Guide to Business Expenses & Taxes
Money coming in is exciting. Money going out? Not so much.
But here’s the reality: tracking expenses and preparing for taxes isn’t optional, it’s survival.
Too many freelancers and small business owners ignore this until tax season hits. Then comes panic: receipts everywhere, surprise bills, and often paying more than necessary.
This guide shows you how to track expenses and prepare for taxes in a way that’s simple, consistent, and stress-free.
Why Tracking Expenses Matters
- Cash flow control: Knowing what’s coming in is useless if you don’t know what’s going out.
- Profit visibility: Expenses show whether your business is actually profitable.
- Tax deductions: Missed expenses = higher taxes than you should pay.
- Peace of mind: No more “I think I can afford it”, you’ll know.
Step 1 — Collect Every Expense
Think of expenses in three main buckets:
- Fixed expenses → rent, subscriptions, insurance, salaries.
- Variable expenses → ads, travel, one-off tools.
- Tax-related expenses → things you can deduct: internet, phone, equipment, professional services.
💡 Pro tip: Don’t wait until tax season. Record expenses weekly, even daily.
Step 2 — Categorize Them Smartly
Throwing everything under “Business” won’t help you later. Use 5–7 categories to keep insights simple but useful:
- Marketing & Sales
- Tools & Software
- Operations (rent, internet, supplies)
- Professional Services (accountant, legal)
- Taxes
- Miscellaneous
In Brazil this is known as Natureza Financeira. In Stravor, you can do this with tags on each bill or expense and run reports grouped by tag.
Step 3 — Keep Receipts (Yes, Every Single One)
Even small receipts matter. They:
- Prove deductions at tax time.
- Show you the true cost of “little” purchases.
- Keep you honest with your tracking.
💡 Pro tip: Snap a photo the moment you pay. Store it in a cloud folder or upload it directly into your expense tracker.
Step 4 — Set Aside Money for Taxes
Taxes are not a surprise, but they often feel like one. The fix:
- Decide a % of income to set aside (commonly 10–20%).
- Move it into a separate “Tax” account as soon as you get paid.
- Treat it like money you never had.
By the time tax season arrives, you’ll have the money ready. No scrambling, no panic.
Step 5 — Review Monthly
At the end of each month:
- Total your expenses by category.
- Compare against your income.
- Note what’s too high (tools you don’t use, overspending on ads).
- Adjust next month accordingly.
💡 Pro tip: Even a 15-minute review gives you more control than 90% of small business owners.
Tools & Tricks
- Spreadsheet method: Works, but gets messy fast.
- Receipt scanner apps: Save photos as PDFs or JPGs.
- Bank exports: CSVs are fine, but they lack categorization.
- Stravor: Record bills, tag expenses, attach receipts, and run reports (including “Transactions by Tag” to see where money really goes).
Your Action Plan (Do This Week)
- Record your last 5 business expenses.
- Tag them into categories.
- Create a digital folder (or use Stravor) for receipts.
- Open a savings pocket for taxes and move a % of your last payment there.
- Schedule 30 minutes next month to review all expenses.
Final Thoughts
Expenses and taxes aren’t the glamorous side of business, but they’re the backbone.
When you track every expense, categorize smartly, keep receipts, and set aside taxes, you’re no longer reacting. You’re in control.