Record an Expense
An Expense is any business cost that is not a purchase of inventory — for example, rent for your shop, electricity bill, employee salaries, transport charges, packaging materials, or office supplies. Recording expenses is important because they directly affect your net profit. Without tracking expenses, your Profit & Loss report only shows gross profit (sales minus cost of goods). With expenses, you see the real bottom line. Record expenses regularly — ideally as they happen — so your financial picture is always up to date.
Steps
- Navigate to Accounting > Expense from the sidebar.
- Click "+ Add Expense".
- Select or create an Expense Category (e.g., Rent, Electricity, Transport).
- Enter the Amount.
- Set the Date of the expense.
- Select the Payment Mode (Cash, Bank, UPI, etc.).
- Add optional Remarks for reference.
- Click "Save" to record the expense.
Tip: Tracking expenses helps you get accurate Profit & Loss reports for your business. Record them as they happen for best results.
Common Questions
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.
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.
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