---
title: "Are You Tracking and Properly Categorising Expenses?"
section: "Operational Excellence"
sectionId: "operational-excellence"
date: "2026-05"
---

## Know What You're Spending — and on What

It is always important to know how much you are spending and exactly where that money is going. Founders who are not properly categorising expenses can fall into serious trouble if it goes unchecked. It might sound boring, but this is a recurring issue with early-stage founders.

## Separate Your Finances

**Do not use your personal bank account for company expenses.** Always operate from a dedicated business account. Mixing personal and business finances creates accounting headaches and can cause real legal and tax problems later.

## The Application Tracker

In the LAUNCH Founder.University 12-week course, founders build an **Application Tracker** in the first few weeks — a spreadsheet that tracks every tool, resource, or service the company is testing or paying for.

For each item, the tracker records:

| Field | Purpose |
|---|---|
| Tool / service name | What it is |
| Owner | Who is responsible for it |
| Free trial expiry | When the cost kicks in |
| Monthly cost | What it actually costs |
| Status | Still needed? |

This gives a clear visual of where the company is spending money. Small expenses add up quickly, and the team can review at any time which tools are still earning their place.

## Categorise Everything

You must categorise all payments — tools, payroll, contractors, office, travel, and anything else. Use accounting software to stay organised:

- **QuickBooks** or an equivalent tool for bookkeeping
- Categorise at point of purchase, not retrospectively

Good categorisation is the foundation for accurate P&L statements, tax filing, and investor conversations.