Four Things You Can Do With Expense Accounts Instantly

Creating expense accounts for specific uses on Kuda Business will give you financial clarity.

Picture this: You need to buy new office items, pay your vendors or put money away to pay rent for a new office location.

With just one main account, you could be dipping into the money you should be putting away toward other things. But if you have expense accounts to organise your finances, it’d be easier to pay more attention to small changes — whether it’s with what your business is making, how you’re spending, or how much you’re saving.

These are some particularly good reasons to create expense accounts on Kuda Business now:

1. Meet your savings goals more easily.

As your business grows, you might start thinking about making some changes to your business like renting a new location. Take a percentage of whatever you make, maybe ten or twenty percent, and save it in a expense account. It doesn’t matter what your saving goals are, but being able to see how your savings are growing is a constant reminder of your reason for saving and a good way to keep your eye on the prize!

2. Plan expenses better.

You’ll know how much money you really have to spend when you create a sub account for each of your recurring expenses or at least the most important ones. Besides that, you’ll also know how much you’ve spent over time on things like office supplies, electricity, or internet data. This will help you manage your expenses better or cut off the unnecessary ones.

3. Budget smarter.

It makes sense to set up a expense account for things like tax remittance, inventory, or even an office renovation.

Let’s say that you’re planning to renovate your office space, you can keep a percentage of the money you want to use for it separately from your main balance to help you stay disciplined. That way, you’ll be able to stick to your budget or know when you’ve used it up.

4. Create an emergency fund with less effort.

Every now and then, there’ll be a few surprises. For that reason, you should set up a expense account as a way of saving some money regularly that’ll always be available if you need it — like when business is slow.

Organising your business finances with expense accounts on Kuda Business will give you clarity — you’ll know exactly where your money is going if you’re spending on the wrong things, and if you’re making progress with your goals.

Download the Kuda Business app on your app store now or go to business.kuda.com to try out expense accounts.