Small business guide
Putting each expense in the right category gives you a profit and loss you can trust. Here are the common ones and what belongs in each.
✓ Checking what you qualify for does not affect your credit score.
Categories turn a pile of transactions into a report. If the same kind of expense is filed under three names, you cannot see what it costs. Consistency matters more than the exact label.
| Category | What goes in it |
|---|---|
| Cost of goods sold | Materials, product, direct labor tied to what you sell |
| Payroll | Wages, payroll taxes, benefits |
| Rent and utilities | Space, electricity, internet, phone |
| Insurance | Liability, property, workers’ compensation, vehicle |
| Marketing | Advertising, website, promotions |
| Supplies | Items used up in running the business |
| Professional fees | Accountant, lawyer, consultants |
| Repairs and maintenance | Upkeep of equipment and space |
| Software and subscriptions | Tools you pay for monthly or yearly |
| Interest and bank fees | Cost of borrowing and account charges |
Ask your accountant how to treat larger purchases.
Write down the rule for borderline items, such as whether a work phone is utilities or software. Applying the same rule every time keeps your reports comparable month to month.
Clean books make a funding review faster, because the numbers a funder reads in your bank statements match what you can explain. We fund from $25,000 to $5,000,000, decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. We read about three months of business bank statements, consider owners with a FICO score of 500 or above, and sole proprietors can apply.
See bookkeeping habits that make funding easier and the financial statements funders want, then start your application. It takes about five minutes and begins with a soft credit pull.
Enough to see where money goes, but not so many that it is hard to keep up.
Interest is an expense. The principal reduces the loan balance.
Many businesses track them separately because tax treatment can differ. Ask your accountant.
Yes, but reclassifying old transactions takes time. Decide your list early.
Funders mostly read bank statements. Good categories help you explain what they show.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
