Business expenses: What counts and how to track them properly

Running a business means dealing with costs every day — from office supplies to software subscriptions and staff salaries. These are your business expenses, and managing them effectively is crucial for staying compliant, keeping your books accurate, and making smarter financial decisions.

But what exactly qualifies as a business expense, and how do you keep track of it properly? Let’s take a closer look.

What is a business expense?

A business expense is any cost you incur while operating your company. It can cover essentials that keep your business running, or costs directly tied to generating revenue.

In most cases, business expenses are tax-deductible — meaning you can subtract them from your taxable income — but only if they’re legitimate and recorded correctly.

Common types of business expenses

Here are some of the key categories of business expenses in Australia:

• Operating expenses – Rent, utilities, office supplies, and insurance.

• Employee expenses – Wages, superannuation, training, and staff benefits.

• Marketing and advertising – Campaigns, sponsorships, and digital ads.

• Travel and entertainment – Flights, accommodation, meals, and client meetings.

• Technology and software – Subscriptions, apps, and IT equipment.

• Professional services – Legal, accounting, and consulting fees.

Why managing business expenses matters

Accurate expense tracking isn’t just about compliance — it’s about financial control. Keeping on top of costs helps you:

• Improve accuracy in financial records

• Maintain real-time visibility over cash flow

• Avoid missed tax deductions

• Spot overspending early

• Reduce admin time at month-end

How to track business expenses properly

Good expense management makes life easier for finance teams and employees alike. Here are some best practices:

1. Ditch the spreadsheets – Use software that automates tracking and approvals.

2. Set clear budgets – Give teams defined limits to control spending.

3. Capture receipts instantly – Store them digitally to avoid missing documents.

4. Review expenses regularly – Don’t wait until tax time; check in frequently.

How Budgetly simplifies expense management

With Budgetly, you get more than just expense tracking. Our platform gives businesses real-time control over spending with:

• Preloaded employee cards with custom limits

• Automatic receipt capture and approvals

• Live visibility of company-wide spending

• Easy categorisation for accurate records

By cutting down on manual admin, Budgetly helps businesses save time and keep financial records clean and accurate.

👉 Want to simplify your expense management? Book a demo with Budgetly today.