Keeping a handle on your business costs isn’t as dull as it might sound. And yes, we’re talking about real numbers and real savings. Getting expense tracking right helps you cut waste, spot opportunities and stay on good terms with HMRC. We’ve got this, and we want you to feel the same sense of confidence.

Below, we’ll look at how different sectors – retail, construction and professional services – can adapt their expense tracking approach. We’ll share practical tips, including which tools you might use and how to file your records accurately. This is all especially important in the current tax year, as allowances and thresholds stay under close review. Good expense tracking means you won’t be caught out by any changes.

 

Why expense tracking matters for the current tax year

Business taxes in the UK can change from one year to the next, but the principle remains the same: you must keep clear, accurate records. The tax-free personal allowance is £12,570 for 2024/25, and the VAT registration threshold is £90,000. If your bookkeeping isn’t in order, you might pay too much tax, lose track of claims or open the door to penalties.

Having a proper system for expense tracking makes it easier to:

• claim all valid expenses, so you don’t pay more tax than you should
• spot trends in your costs, helping you plan budgets more effectively
• simplify your end-of-year accounts, so you spend less time and money on admin.

We support businesses with strategies that keep them on top of their numbers, without the headache.

 

Retail sector tips

Categorise stock vs operational costs

Retailers can have large bills for stock, packaging and shipping. It’s wise to use specific categories for each of these. Many online accounting tools let you label transactions as ‘raw materials’, ‘finished goods’ or ‘shipping’. This helps you see which products might be costing more than they’re worth and whether you can adjust your margins.

Go digital at the till

Most UK merchants rely on card payments or contactless transactions. Automated point-of-sale (POS) systems that integrate with your accounting software will record sales and related costs in real time. You’ll see exactly where your cash is going, which is handy for budgeting. And it means less time checking receipts at the month’s end.

 

Track staff and premises expenses

Most retailers have to pay rent or business rates, and those can add up quickly. It’s also key to track staff wages, especially for part-time or seasonal workers. Some accounting tools will link to your payroll system so you can keep all records in one place. That’s a big timesaver.

 

Construction sector tips

Separate materials from labour

Construction costs can vary a lot from project to project. You’ll need to track raw materials (like timber, cement or wiring) and staff costs separately. When you do this, you’ll have a clearer view of each project’s profitability. You’ll also avoid mixing up invoices with payroll, which can lead to confusion when it’s time to submit your tax return.

 

Log subcontractor expenses

Subcontractors often come with unique invoice terms. Make sure you record these promptly. Some businesses keep a simple spreadsheet; others use project management software with an expense module. Either way, if you forget to track subcontractor invoices, you might overstate your profits and face a higher tax bill.

 

Monitor mileage

If you or your team travel to various sites, remember that mileage allowances can be reclaimed. HMRC’s approved rates for cars stay at 45p per mile for the first 10,000 miles, then 25p after that. This alone can lead to decent savings each year if tracked properly. You can see more details on HMRC’s official page on expenses and benefits.

 

Professional services sector tips

Billable vs non-billable expenses

Law firms, consulting agencies, marketing houses – all of these rely on project-based billing. If you pass expenses on to clients, label them as ‘billable’. For overheads like software subscriptions, mark them as ‘non-billable’. This stops you from mixing personal or overhead costs with reimbursable client expenses.

 

Software subscriptions and training

Professional services often rely on advanced digital tools. Keep a monthly log of each subscription, from design platforms to client relationship management (CRM) systems. And if you pay for training or professional memberships, remember that many of these are legitimate tax-deductible expenses. You can confirm what qualifies on the Companies House official site, ensuring you stay compliant.

 

Time tracking integration

Many professional services companies use time-tracking apps like Toggl or Harvest to log billable hours. These often integrate with accounting software. This means that any expense assigned to a project is instantly ready for invoicing. It’s a good way to avoid confusion or missing data at month end.

Useful tools for expense tracking

There are many expense-tracking apps, and most are cloud-based. QuickBooks, Xero and FreeAgent are popular in the UK. They let you scan receipts with your phone or forward invoice emails. Many also link to your bank account, so transactions appear automatically.

For those who prefer an all-in-one approach, some platforms include VAT submissions, payroll and even inventory management. We often recommend a quick chat to figure out the best tool for your sector – what works well for a small retailer might not suit a construction firm.

 

Effective expense categorisation

Categorising expenses properly is key for accurate accounts. Splitting costs into categories like rent, utilities, marketing, payroll and so on helps you to:

• prepare your tax return efficiently
• identify where you’re spending the most
• decide which parts of your business could use a rethink.

Remember that certain categories – like staff entertainment – might not qualify for tax relief. And some expenses, such as private medical insurance or gym memberships, might count as benefits in kind. If you’re not sure, ask us at Blue Shore and we’ll look at your specific spending patterns.

 

Minimising costs and improving oversight

Expense tracking isn’t just about filing your returns correctly. It can also help you see patterns that might be affecting your profitability. For instance, if your mobile phone bills have crept up, you might negotiate a new contract. Or if you’re regularly spending on freelance help, it might be cheaper to hire someone in-house.

You can also set monthly or quarterly targets. Monitor them in real time, and once you see an area that’s overspent, dig deeper to find out why. That way, you’ll save money and keep your margins healthy.

 

We’ve got this: How we can help

We know that sorting out expense tracking takes time, and time is money. But we’re here to make it simpler. If you’d like us to help set up the right software or double check your records, we’re always happy to jump in.

Book a consultation with our team at Blue Shore and let us help you simplify your accounts, whatever your sector.

Ready for a clearer view of your finances? Drop us a message and we’ll show you just how simple expense tracking can be.