Guide3 topics5 FAQs

Accounting — Expense Tracking & Cash-Bank Management

Your business profit is not just Sales minus Purchases — it also includes operating expenses like rent, electricity, salaries, transport, and office supplies. The Accounting module lets you record every expense by category, so your Profit & Loss report shows the true picture of profitability. The Cash & Bank section tracks all money flowing in and out of your business, giving you a clear view of your cash position at any time. Together, these features ensure your financial records are complete and accurate.

Overview

  • Categorized Expense Tracking Record expenses under custom categories like Rent, Electricity, Transport, and Salary. This helps you see exactly where your money goes and identify areas to cut costs.
  • Accurate Profit & Loss Without tracking expenses, your P&L only shows gross profit. With expenses recorded, you get net profit — the true measure of whether your business is making or losing money.
  • Cash Flow Visibility See total Cash In (from sales, payments received) and Cash Out (purchases, expenses, payments made) with running balance. Know your exact cash position at any time.
  • Store-Wise Cash Tracking Switch between stores to see cash flow for each location separately. Essential for multi-store businesses that need to monitor cash handling at each outlet.

Step-by-Step Guides

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Frequently Asked Questions

Yes, all recorded expenses are automatically included in the Profit & Loss report. Without tracking expenses, you only see gross profit (sales minus cost of goods). With expenses recorded, you see net profit — the true measure of your business profitability after accounting for rent, salaries, utilities, and other operating costs.

Yes, while adding an expense, you can either select an existing category or type a new category name to create one. Common categories include Rent, Electricity, Transport, Salary, Office Supplies, Packaging, Maintenance, and Marketing. Organizing expenses by category helps you analyze where most of your money goes.

Go to Accounting > Cash & Bank and use the store selector chips to switch between stores. The Cash Flow Summary and transaction list will update to show data for the selected store. This helps you monitor cash handling at each location independently.

A Purchase is buying inventory items that you will sell to customers (e.g., buying goods from a supplier). An Expense is a business cost that is not inventory (e.g., rent, electricity, salary, transport). Purchases increase your stock; expenses do not. Both reduce your profit, but they are tracked separately for accurate accounting.

Sales minus Purchases only gives you gross profit. But your real profit (net profit) also accounts for operating expenses like rent, utilities, salaries, and transport. If you earn ₹1,00,000 in gross profit but spend ₹60,000 on expenses, your real profit is only ₹40,000. Without tracking expenses, you will overestimate your profitability.

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