Keeping track of expenses as a chiropractic business owner might not be your favorite task—but it’s one of the most critical aspects of maintaining a profitable business. Without a clear system in place, you can easily lose track of where your money is going, leading to cash flow problems, unnecessary charges, and missed tax deductions.

The good news? Tracking expenses doesn’t have to be complicated. In this post, I’ll walk you through three essential ways to track your business expenses so you can stay organized, make informed decisions, and maximize your profit. Ideally, you should be doing all 3 in your business; however, if you’re new to this, the key is to not let it overwhelm you and take it one step at a time.

1. Create a Master Expense List

A Master Expense List is your go-to reference for all recurring business expenses. This list should include:
✔ Monthly expenses (e.g., rent, software subscriptions, chiropractic coaching & memberships, etc.)
✔ Quarterly expenses (e.g., estimated tax payments, malpractice insurance, etc.)
✔ Annual expenses (e.g., business licenses, memberships, insurance premiums, etc.)

💡 Why It’s Important:

• Prevents forgotten subscriptions and unnecessary spending
• Helps you manage cash flow and avoid timing issues
• Makes it easier to update payment details when changing credit cards

How to Set It Up:

• Use a Google Sheet or a notebook—whatever you’ll check regularly
• Include the expense name, due date, amount, payment method, and purpose
• Review it monthly to catch any changes or unnecessary expenses

2. Create a Budget (Money Allocation Plan)

A budget (or what I like to call a Money Allocation Plan) is your proactive way of deciding where your money will go before you spend it.

💡 Why It’s Important:

• Ensures you have enough revenue to cover expenses and still make a profit
• Helps you forecast cash flow and plan for upcoming payments
• Allows you to set aside money for variable or one-time expenses

How to Set It Up:

• Use your Master Expense List as a starting point
• Categorize expenses into fixed, variable, and discretionary
• Update it monthly to reflect new expenses or changes in revenue

3. Use an Updated Bookkeeping System

Your bookkeeping system is where everything comes together—it tracks every transaction that flows in and out of your business.

💡 Why It’s Important:

• Ensures you capture every tax deduction
• Helps you analyze spending trends and adjust accordingly
• Provides real-time financial insights to guide business decisions

How to Set It Up:

• Use an accounting system like QuickBooks Online
• Set up rules for automatic categorization of expenses
• Run monthly reports like the Profit & Loss Statement and Transaction List by Vendor to track your expenses

By implementing these three strategies—Master Expense List, Budget, and Bookkeeping System—you’ll have a clear, organized way to track and control your expenses.

📌 Want to take it a step further? Grab my free Sample Chiropractic P&L to see what a healthy business financial report should look like!

🎧 Tune in to Episode 41 to hear me dive deeper into this topic!