A working Google Sheets expense tracker needs six columns: Date, Merchant, Category, Amount, Payment Method, and Notes/Receipt Link. Set up a data validation dropdown on the Category column (Data → Data Validation → Dropdown) to lock entries to a predefined list — this prevents typos that break SUMIF formulas. Use Schedule C categories: Advertising, Auto & Travel, Office Supplies, Software & Subscriptions, Meals (50% deductible), Professional Services, Home Office (simplified method: $5/sq ft up to 300 sq ft = $1,500/yr max), Utilities, Insurance, Equipment, Contract Labor, and Education.
Add a second "Summary" tab with each category in column A and a SUMIF formula in column B: =SUMIF(Expenses!C:C,A2,Expenses!D:D). This totals spending by category automatically as you add rows. Add a Budget column and conditional formatting to flag over-budget categories in red.
For receipt documentation, scan paper receipts with the Google Drive mobile app (+ → Scan), name files YYYY-MM-DD_Merchant, then paste the shareable Drive link into the Notes column. Your accountant can click through from the shared sheet without any downloads.
The main limitation is manual entry — this tracker works well up to roughly 100 receipts per month, after which the weekly logging time (30+ minutes) exceeds the cost of automated tools. ExpenseBot offers a free pre-built template at https://www.expensebot.ai/expense-tracker-template with all of the above pre-configured, or an automated version at https://www.expensebot.ai/google-sheets-expense-tracker that scans Gmail for receipts and writes rows automatically.