A cost tracker is a tool that records all the expenses related to any project or business and helps in devising a budget for task completion. Cost trackers are used by various businesses as well as individuals to keep track of their money. There are various types of trackers available in the market that differ based on the technology used as well as the features that are provided.
A cost tracker is a powerful tool for analyzing expenses and making serious judgments about budgeting and allocating useful resources. It helps in increasing savings and contributes minimize overspending on useless things. It makes a person conscious of their spending habits and helps in finding a middle way.
Several uses of cost tracker
There are several uses for cost trackers in varied fields because it provides data with precision and efficacy. Some of the major uses of cost trackers include,
- Business: businesses use cost trackers to track their profit as well as their expenses each month. All the data regarding manufacturing, sales, employee incentives, and bonuses to make sure that cost trackers have information about all expenses. It provides insight into the profit generated by the business for the following month.
- Project: cost tracker for each project can be devised that focuses on the expenses of a single project to give a perfect figure. It includes all expenses of meetings, refreshments, manufacturing, transport, and employees. It helps companies know about the cost they spend on a single project so that clients can be charged accordingly.
- Personal: on an individual level, cost trackers help in maintaining a balance between income and expenses. It is important to save a little each month. On a personal scale, expenses may include rent, groceries, utilities, fuel, automotive, etc. It helps individuals with budgeting and prevents them from overspending.
Benefits
Cost trackers have proved their significance over the years because of their wide applications in almost every field. Some major benefits of cost trackers are given below,
- It keeps a check on all income resources and makes sure you remember to collect your dues each month.
- It assists you in budgeting by providing a preview of last month’s expenses. It allows you to stay within your spending boundary and not give up at the hands of luxuries or designer wear.
- Savings from each month can be tracked and can also be used as a motivation to do more.
Format
Cost trackers can come in a variety of ways and it depends on individuals to choose the most appropriate one. Some commonly used cost trackers include,
- Paper-based: these cost trackers are made up of hard paper and data is added in a spontaneous fashion. Although, it gets difficult to manage and take care of every paper it gives the freedom of making your own cost tracker.
- Spreadsheet: spreadsheets can be used as cost trackers and are manageable due to being in soft form. It allows you to add additional information and add receipts or other proof of expenses
- Digital: application-based cost trackers can be downloaded on mobile phones and act as portable software. They can be accessed anywhere.
