{"id":9456,"date":"2021-11-09T12:50:00","date_gmt":"2021-11-09T10:50:00","guid":{"rendered":"https:\/\/clockify.me\/blog\/?p=9456"},"modified":"2025-06-23T02:00:00","modified_gmt":"2025-06-23T00:00:00","slug":"expense-tracking","status":"publish","type":"post","link":"https:\/\/clockify.me\/blog\/managing-tasks\/expense-tracking\/","title":{"rendered":"How to Keep Track of Expenses Accurately"},"content":{"rendered":"\n<p>Are you good with money, or does it just slip through your fingers?<\/p>\n\n\n\n<p>Do you <strong>control your finances<\/strong>, or do they control you?<\/p>\n\n\n\n<p>You don\u2019t have to answer out loud \u2014 if you choose at least one of the latter options, just keep reading.<\/p>\n\n\n\n<p>In this article, you\u2019ll learn what expense tracking is and a tool you can use to rein in your finances \u2014 both personal and business.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1110\" height=\"555\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover-1110x555.jpg\" alt=\"How to keep track of expenses - cover\" class=\"wp-image-31590\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover-1110x555.jpg 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover-600x300.jpg 600w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover-768x384.jpg 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover-18x9.jpg 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/How-to-keep-track-of-expenses-cover.jpg 1200w\" sizes=\"auto, (max-width: 1110px) 100vw, 1110px\" \/><\/figure>\n\n\n\n<h2 id=\"what-is-expense-tracking\" class=\"wp-block-heading\">What is expense tracking?<\/h2>\n\n\n\n<p><strong>Expense tracking is a budgeting method that involves recording all expenditures<\/strong> over a specific period to avoid spending beyond your means.<\/p>\n\n\n\n<p>Business owners and managers track expenses to learn where and how they spend their money. In fact, detailed <a href=\"https:\/\/clockify.me\/time-expense-tracking\" target=\"_blank\" rel=\"noreferrer noopener\">expense tracking<\/a> can:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep you focused on your financial goals,&nbsp;<\/li>\n\n\n\n<li>Reveal spending issues on time,&nbsp;<\/li>\n\n\n\n<li>Make business forecasting easier, and<\/li>\n\n\n\n<li>Help you solve problems on time.&nbsp;<\/li>\n<\/ul>\n\n\n\n\n<div class=\"banner banner-dark clockify-gradient-landing-4\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Free expense tracker<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Track costs, expenses, and time for your whole team with a powerful time tracker.<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/apps\" target=\"_blank\">Download<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-4@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-4.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    \n\n\n\n<h2 id=\"5-reasons-why-you-should-track-your-expenses\" class=\"wp-block-heading\">5 Reasons why you should track your expenses<\/h2>\n\n\n\n<p>Meticulous cost tracking brings a wide range of benefits. With a firm grip on your expenses, you can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Take control of your finances<\/strong> so you manage your money instead of the other way around,&nbsp;<\/li>\n\n\n\n<li><strong>Focus on your financial goals<\/strong> like getting out of debt, saving for a house, or investing in a business,&nbsp;<\/li>\n\n\n\n<li><strong>Spot spending issues<\/strong> such as unnecessary monthly subscriptions and eating out more often than you can afford,&nbsp;<\/li>\n\n\n\n<li><strong>Make better business forecasts<\/strong> by always knowing the profitability of each client and project, and<\/li>\n\n\n\n<li><strong>Stick to your budget<\/strong> by cutting out impulse spending and managing money more consciously.<\/li>\n<\/ul>\n\n\n\n<p>By tracking your spending, you\u2019ll see any financial problems a mile away and resolve them on time.&nbsp;<\/p>\n\n\n\n<h2 id=\"how-to-track-expenses\" class=\"wp-block-heading\">How to track expenses?<\/h2>\n\n\n\n<p>To balance the books and stay on budget, you need to develop an efficient expense tracking system.&nbsp;<\/p>\n\n\n\n<p>Naturally, there\u2019s no single correct method for tracking expenses \u2014 many people and organizations adopt different approaches.&nbsp;<\/p>\n\n\n\n<p>So, we\u2019ve carefully selected 5 universal steps you can take to improve your expense tracking right now.<\/p>\n\n\n\n<h3 id=\"step-1-categorize-your-expenses\" class=\"wp-block-heading\">Step #1: Categorize your expenses<\/h3>\n\n\n\n<p>When you categorize your expenditures, you get a better grasp of your finances. Therefore, you may use a seemingly old-fashioned but effective method \u2014 <a href=\"https:\/\/www.thebalancemoney.com\/what-is-envelope-budgeting-1293682\" target=\"_blank\" rel=\"noreferrer noopener\">envelope budgeting<\/a>.<\/p>\n\n\n\n<p>This method helps you see how much money you\u2019re spending in each major category, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food,&nbsp;<\/li>\n\n\n\n<li>Utilities,&nbsp;<\/li>\n\n\n\n<li>Office supplies,&nbsp;<\/li>\n\n\n\n<li>Entertainment, etc.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>When you carefully make <a href=\"https:\/\/clockify.me\/help\/projects\/project-budget\" target=\"_blank\" rel=\"noreferrer noopener\">budget estimates<\/a> for each category, put them into an actual envelope.&nbsp;<\/p>\n\n\n\n<p>This way, you\u2019ll always know the expenses tied to different aspects of your life and <strong>avoid overspending<\/strong>. You can also use this method to build up your savings account \u2014 if there\u2019s some money left over in one of the envelopes, you can add it to your savings.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Expenses | Clockify Features\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/i0--Ro6g4rc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Of course, the envelope method is only suitable for tracking personal expenses. It\u2019s not the most convenient solution for business costs.&nbsp;<\/p>\n\n\n\n<p>For business expenses, modern and <strong>reliable software solutions like Clockify<\/strong> by <a href=\"https:\/\/cake.com\/\" type=\"link\" id=\"https:\/\/cake.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CAKE.com<\/a> are a better option.\u00a0<\/p>\n\n\n\n<p>You can use Clockify to manage all kinds of business costs \u2014 from your employees\u2019 daily and hourly rates, to mileage, business lunches, and overtime.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1110\" height=\"549\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify-1110x549.jpg\" alt=\"Expense tracking in Clockify\" class=\"wp-image-31549\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify-1110x549.jpg 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify-607x300.jpg 607w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify-768x380.jpg 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify-18x9.jpg 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Expense-tracking-in-clockify.jpg 1200w\" sizes=\"auto, (max-width: 1110px) 100vw, 1110px\" \/><figcaption class=\"wp-element-caption\">Expense tracking in Clockify<\/figcaption><\/figure>\n\n\n\n<p>You can create custom expense categories for everything, allowing you to track costs as precisely as you want. To create a new expense category, you only need to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Choose <em>Expenses<\/em> from the left sidebar,&nbsp;<\/li>\n\n\n\n<li>Go to <em>Settings,<\/em><\/li>\n\n\n\n<li>Click <em>Add category,<\/em><\/li>\n\n\n\n<li>Enter the category name and any other information, and<\/li>\n\n\n\n<li>Click <em>Create.<\/em><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"420\" height=\"384\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-cost-categories-in-Clockify.png\" alt=\"Creating cost categories in Clockify\" class=\"wp-image-31550\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-cost-categories-in-Clockify.png 420w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-cost-categories-in-Clockify-328x300.png 328w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-cost-categories-in-Clockify-13x12.png 13w\" sizes=\"auto, (max-width: 420px) 100vw, 420px\" \/><figcaption class=\"wp-element-caption\">Creating cost categories in Clockify\n<\/figcaption><\/figure>\n<\/div>\n\n\n<p>Precise cost categories give you valuable insights into how your company or team spends money and the profitability of your work.&nbsp;<\/p>\n\n\n\n<p class=\"custom-btn\"><a href=\"https:\/\/app.clockify.me\/en\/signup\" data-type=\"link\" data-id=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Track costs with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"step-2-track-your-expenses-regularly\" class=\"wp-block-heading\">Step #2: Track your expenses regularly<\/h3>\n\n\n\n<p>Ideally, you should track your expenses in real time. Make tracking expenses a regular habit to avoid forgetting an expenditure and disrupting cost analysis down the line.&nbsp;<\/p>\n\n\n\n<p>With that being said, you can set <a href=\"https:\/\/clockify.me\/help\/administration\/targets-reminders\" target=\"_blank\" rel=\"noreferrer noopener\">daily or weekly reminders<\/a> to build better budgeting habits and never overlook an expense again.<\/p>\n\n\n\n<p>For business owners and managers, regular expense tracking is tough because of the sheer volume of costs. If you did it manually, you\u2019d spend an eternity on employee billable hours alone.&nbsp;<\/p>\n\n\n\n<p>Luckily, you can use <a href=\"https:\/\/clockify.me\/time-billing-software\" target=\"_blank\" rel=\"noreferrer noopener\">time and billing software<\/a> to simplify the process.&nbsp;<\/p>\n\n\n\n<p>For example, Clockify can <a href=\"https:\/\/clockify.me\/help\/track-time-and-expenses\/tracking-billable-time\" target=\"_blank\" rel=\"noreferrer noopener\">track billable hours<\/a> for you automatically. As a manager, all you need to do is set the billable rates for each employee in the <em>Team<\/em> section.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1110\" height=\"438\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify-1110x438.png\" alt=\"Setting billable rates in Clockify\" class=\"wp-image-31551\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify-1110x438.png 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify-730x288.png 730w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify-768x303.png 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify-18x7.png 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Setting-billable-rates-in-Clockify.png 1200w\" sizes=\"auto, (max-width: 1110px) 100vw, 1110px\" \/><figcaption class=\"wp-element-caption\">Setting billable rates in Clockify  \n<\/figcaption><\/figure>\n\n\n\n<p>As your employees track their time in Clockify, the platform will automatically calculate billables for everyone.&nbsp;<\/p>\n\n\n\n<p>Based on this data, Clockify generates visual reports that provide valuable insights in real time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1110\" height=\"534\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1-1110x534.png\" alt=\"Summary report in Clockify\" class=\"wp-image-31552\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1-1110x534.png 1110w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1-624x300.png 624w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1-768x369.png 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1-18x9.png 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Summary-report-in-Clockify-1.png 1200w\" sizes=\"auto, (max-width: 1110px) 100vw, 1110px\" \/><figcaption class=\"wp-element-caption\">Summary report in Clockify<\/figcaption><\/figure>\n\n\n\n<p>In the <a href=\"https:\/\/clockify.me\/help\/reports\/summary-report\" target=\"_blank\" rel=\"noreferrer noopener\">summary report<\/a>, you can compare your employees\u2019 billable rates to the profitability of their assigned tasks and projects.&nbsp;<\/p>\n\n\n\n<p>As a result, you\u2019ll always know if costs on a specific project are getting out of hand.&nbsp;<\/p>\n\n\n\n<p class=\"custom-btn\"><a href=\"https:\/\/app.clockify.me\/en\/signup\" data-type=\"link\" data-id=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Manage expenses with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"step-3-keep-a-thorough-paper-trail\" class=\"wp-block-heading\">Step #3: Keep a thorough paper trail<\/h3>\n\n\n\n<p>By this, we don\u2019t mean you should pile up dozens of papers in your drawers. You just need to gather all the financial documents and other valuable papers lying around the house in one place.&nbsp;<\/p>\n\n\n\n<p>Then, get some folders and organize them by categories such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Receipts,&nbsp;<\/li>\n\n\n\n<li>Tax records,&nbsp;<\/li>\n\n\n\n<li>Certificates,&nbsp;<\/li>\n\n\n\n<li>Warranties,&nbsp;<\/li>\n\n\n\n<li>Policies, etc.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>For additional security and peace of mind, consider making digital backups on cloud platforms.&nbsp;<\/p>\n\n\n\n<p>Small businesses must have a <strong>workable record-keeping system<\/strong> to organize their invoices, bank statements, payroll records, and other business-related expenditures. In most jurisdictions, governments require businesses to keep accurate records for tax and compliance purposes.<\/p>\n\n\n\n<p>No matter what method you opt for, categorizing and storing your valuable papers is essential for tracking your expenses. You never know when you\u2019ll need the receipt from a recent purchase or a similar expense.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p>Struggling to understand how federal taxes work? Use our free federal paycheck calculator to estimate taxes more accurately:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/learn\/taxes\/paycheck-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Paycheck Calculator<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"step-4-keep-a-monthly-expense-report\" class=\"wp-block-heading\">Step #4: Keep a monthly expense report<\/h3>\n\n\n\n<p>Now that you\u2019ve recorded your expenses (by hand or digitally), it\u2019s wise to review them monthly. This way, you can see where your money went and change your spending habits if necessary.<\/p>\n\n\n\n<p>If you prefer more traditional record-keeping, you can track and write everything down by hand. However, budgeting apps that automate a lot of that work are more practical.&nbsp;<\/p>\n\n\n\n<p class=\"custom-btn\"><a href=\"https:\/\/app.clockify.me\/en\/signup\" data-type=\"link\" data-id=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Track project costs with Clockify<\/a><\/p>\n\n\n\n<p>For instance, Clockify by CAKE.com generates reports based on your tracked time and expenses automatically, and you can export them in popular formats like PDF, CSV, and Excel.<\/p>\n\n\n\n<p>This makes it easier to analyze <a href=\"https:\/\/clockify.me\/balance-sheet-template\" target=\"_blank\" rel=\"noreferrer noopener\">balance sheets<\/a>, cash flow, profit, or potential losses at the end of each month. That way, you\u2019ll have a firm grasp of your equity, assets, and liabilities, and be prepared for unexpected expenses.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p>Struggling to keep track of monthly expenses? Check out this article for practical tips and templates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/track-monthly-expenses\/\" target=\"_blank\" rel=\"noreferrer noopener\">Smart Ways for Monthly Expense Tracking<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"step-5-find-a-suitable-tool-for-expense-tracking\" class=\"wp-block-heading\">Step #5: Find a suitable tool for expense tracking<\/h3>\n\n\n\n<p>There\u2019s no one perfect way to record your expenses.&nbsp;<\/p>\n\n\n\n<p>Some people are comfortable with a simple expense ledger or <a href=\"https:\/\/www.montana.edu\/extension\/health\/documents\/MT198703HR.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">check register<\/a>, where they record purchases by hand. Others prefer feature-rich budgeting apps for tracking money on the go. Find your \u201cstyle\u201d and what works best for you \u2014 the choice is all yours.<\/p>\n\n\n\n<p>Of course, modern software tools make cost tracking quicker, easier, and more precise, especially for business owners.&nbsp;<\/p>\n\n\n\n\n<div class=\"banner banner-dark clockify-gradient-landing-4\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Free expense tracker<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Track costs, expenses, and time for your whole team with a powerful time tracker.<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/apps\" target=\"_blank\">Download<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-4@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-4.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    \n\n\n\n<h2 id=\"how-to-track-project-expenses\" class=\"wp-block-heading\">How to track project expenses<\/h2>\n\n\n\n<p>Now that we\u2019ve covered a few ways to track expenses more accurately, let\u2019s dive into how freelancers and permanent employees working from home can track expenses on specific projects.<\/p>\n\n\n\n<h3 id=\"as-a-freelancer\" class=\"wp-block-heading\">As a freelancer<\/h3>\n\n\n\n<p>Freelancers are responsible for their taxes and for setting aside money for health insurance and an IRA. Together with regular living costs and business expenses, all this can become difficult to manage.&nbsp;<\/p>\n\n\n\n<p>That\u2019s why freelancers should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Separate<\/strong> business and private accounts, allowing you to charge for each type of expense separately and easily calculate tax deductions later on, and<\/li>\n\n\n\n<li><strong>Consult<\/strong> a tax accountant to give you professional tax advice.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>To help you track all freelancing expenses, we\u2019ve created a template sheet where you can enter various types of costs:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcGpdfIxzbm-t_E8FCCGaHJ6Vpu-rs6oT_-mOdVFnW_DUOvWlyHvaxEq6cZZF8Str9ZRMeQFp--BIbqkVoZlz1SnwkSLfbcgbDoi3Dy80NqTUkFoJNDClXkgcD2DLK-eszcTG2T?key=FdLv6uI58JPe-GTdeZwZZQ\" alt=\"\"\/><\/figure>\n\n\n\n<p>\u2b07\ufe0f <a href=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Project-expenses-for-freelancers-template.xlsx\" data-type=\"attachment\" data-id=\"31564\" target=\"_blank\" rel=\"noreferrer noopener\">Download the Project expenses for freelancers template in Excel<\/a><\/p>\n\n\n\n<p>\u2b07\ufe0f <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1jDpNr51jXKC5As87wj9qKTN6txcdS8GDP0bhCbpmAHY\/copy\" target=\"_blank\" rel=\"noreferrer noopener\">Download the Project expenses for freelancers template in Google Sheets<\/a><\/p>\n\n\n\n<h3 id=\"as-a-permanent-employee-working-from-home\" class=\"wp-block-heading\">As a permanent employee working from home<\/h3>\n\n\n\n<p>Unlike freelancers, remote employees working for a single company usually manage fewer expenses. Typically, costs like health insurance and taxes are automatically deducted from their wages.&nbsp;<\/p>\n\n\n\n<p>However, they may still have professional expenses to track and report, such as bills for company phones or other costs that their firms might reimburse.<\/p>\n\n\n\n<p>To track such costs easily, here\u2019s a template for permanent employees working from home:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdn9HJSSL2QIf9rmreblSU1oCwR0QLuqy1BGSLJUJ1-bGmATXalHfyDAIu2jIfxxhq400Dxog96JwD2rK1yAy9bDjwX6RIvla0zCWLQBV4lNk6VzWNL65VfMXWhvlPjiOnnCm5Nsw?key=FdLv6uI58JPe-GTdeZwZZQ\" alt=\"\"\/><\/figure>\n\n\n\n<p>\u2b07\ufe0f <a href=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Project-expenses-for-permanent-employees-working-from-home.xlsx\" data-type=\"attachment\" data-id=\"31565\" target=\"_blank\" rel=\"noreferrer noopener\">Download the Project expenses for permanent employees template in Excel<\/a><\/p>\n\n\n\n<p>\u2b07\ufe0f <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1JqwUtD4BCNt8C6mB2ktE65u82qY_h-mjfAJ-_khegNM\/copy\" target=\"_blank\" rel=\"noreferrer noopener\">Download the Project expenses for permanent employees template in Google Sheets<\/a><\/p>\n\n\n\n<h2 id=\"track-expenses-easily-with-clockify-by-cake-com\" class=\"wp-block-heading\">Track expenses easily with Clockify by CAKE.com<\/h2>\n\n\n\n<p>Clockify lets you easily track and record your employees\u2019 unit-based expenses, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hours,&nbsp;<\/li>\n\n\n\n<li>Mileage,<\/li>\n\n\n\n<li>Days,&nbsp;<\/li>\n\n\n\n<li>Project-related costs,&nbsp;<\/li>\n\n\n\n<li>Fixed fees,&nbsp;<\/li>\n\n\n\n<li>Overtime pay, and<\/li>\n\n\n\n<li>Other quantifiable costs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You can quickly create an expense, <strong>organize it by expense category,<\/strong> and associate it with the related project. If you need to explain the cost in more detail, you can also add a note \u2014 like below:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"484\" height=\"548\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-an-expense-in-Clockify.png\" alt=\"Creating an expense in Clockify\" class=\"wp-image-31553\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-an-expense-in-Clockify.png 484w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-an-expense-in-Clockify-265x300.png 265w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2025\/06\/Creating-an-expense-in-Clockify-11x12.png 11w\" sizes=\"auto, (max-width: 484px) 100vw, 484px\" \/><figcaption class=\"wp-element-caption\">Creating an expense in Clockify\n<\/figcaption><\/figure>\n<\/div>\n\n\n<p>Additionally, you can attach receipts for accounting purposes in various file formats (.png, .pdf, etc.), up to a 5 MB file size.<\/p>\n\n\n\n<p>Recording expenses in Clockify by CAKE.com is an extra feature available in the Pro and Enterprise plans. Take a look at the <a href=\"https:\/\/clockify.me\/pricing\" target=\"_blank\" rel=\"noreferrer noopener\">different plans<\/a> that Clockify offers and get the one that suits you the most.<\/p>\n\n\n\n<p>For maximum value, Clockify is also available at a discounted price as part of the <a href=\"https:\/\/cake.com\" target=\"_blank\" rel=\"noreferrer noopener\">CAKE.com Bundle<\/a> \u2014 where you get 3 productivity apps for the price of one.&nbsp;<\/p>\n\n\n\n<p class=\"custom-btn\"><a href=\"https:\/\/app.clockify.me\/en\/signup\" data-type=\"link\" data-id=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\" rel=\"noreferrer noopener\">Get started with Clockify<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn to keep track of business expenses accurately and efficiently. Follow 5 simple steps to improve your expense tracking. <\/p>\n","protected":false},"author":18,"featured_media":31596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-9456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-managing-tasks"],"acf":[],"_links":{"self":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/9456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/comments?post=9456"}],"version-history":[{"count":49,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/9456\/revisions"}],"predecessor-version":[{"id":36843,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/9456\/revisions\/36843"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media\/31596"}],"wp:attachment":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media?parent=9456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/categories?post=9456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/tags?post=9456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}