Business expenses: what to ask your bookkeeper to report

How can you get a clear view of business expenses?

Combine organised supporting documents with regular reporting on income, expenses, liabilities and cash flow. Give your bookkeeper legible receipts and explain their business purpose, then agree when reports arrive and who explains significant changes. A bank balance is not the same as profit.

Company owners need more than confirmation that documents have been received. They need to know which expenses are increasing, which payments are still due and how much cash is available. This guide is a practical framework for working with your accountant, not a list of automatically tax-deductible expenses.

1. Start with documents, not just totals

Link each purchase to its document, date, amount, supplier and business purpose. Keep supporting contracts, orders or evidence of service delivery where relevant. Record who incurred the expense and whether it has been paid.

Missing or faded fiscal receipts make verification harder. Read how to preserve fiscal receipts and organise a documented handover and why fiscal receipts fade. A digital copy can support your records, but do not assume that it always replaces an original or establishes entitlement to a tax deduction.

2. Separate management reporting from tax treatment

For decision-making, it can help to group expenses into payroll, rent, purchases, transport and external services. These are reporting categories, not confirmation that every item qualifies for tax relief.

The treatment of an individual expense depends on supporting documents, business purpose and applicable rules. Where there is uncertainty, obtain tax advisory support before assuming an expense or VAT deduction is allowable.

3. Agree a monthly report with your bookkeeper

Within the agreed scope, ask for:

• recorded transactions and outstanding documents;
• period income and expenses, with significant changes explained;
• unpaid liabilities and outstanding receivables;
• cash inflows and outflows, distinguished from accounting profit;
• issues that require the owner's decision.

Agree the delivery date, reporting format and point of contact. This makes expense reporting a repeatable process rather than an occasional request for information.

4. Turn the report into a decision

If external service costs are increasing, check what was delivered and what the contract covers. If the bank balance looks healthy, also review unpaid liabilities. Neither total expenses nor the bank balance alone tells the full story.

Once the records are reliable, financial advisory can help assess cash flow, priorities and planned decisions. Bookkeeping provides the evidence; advisory connects the numbers to what you should do next.

How DJDJ Savetovanje can help

Our accounting and bookkeeping service includes monthly management reporting, such as balance sheets, income statements and cash-flow reports, within the agreed engagement. Reporting deadlines, communication and additional advisory work should be specified in the proposal.

If your current reports do not answer the questions that matter, read how to prepare a change of bookkeeper. The objective is clearer accountability and more useful information, not change for its own sake.

Frequently asked questions

Is every purchase supported by a fiscal receipt tax-deductible?

Do not assume so. Recording an expense and determining its tax treatment are different tasks. Ask your bookkeeper or tax adviser to assess the specific case.

Why can a profitable company be short of cash?

Accounting profit and cash flow differ. Customer receipts and supplier payments may take place in a different period from the accounting entry. Review both reports.

What should I send my bookkeeper first?

Legible documents, a handover list, an explanation of business purpose and a list of missing records. Agree how receipt of the documents will be confirmed.

Need expense reporting you can use for decisions? Request a quote in 24h or contact DJDJ Savetovanje.