How to Record Expenses
Use this feature to record business expenses, track outstanding payments, and maintain accurate financial reports.
Before you begin: Ensure that your expense categories and subcategories have already been created in the system.
Step 1: Open the Expenses List
From the sidebar menu, click Expenses.
Select Expenses List.
The Expenses List page will display all existing expense records.
Step 2: Create a New Expense
Click the Create button located at the top-right corner of the page.
The Create Expense form will open.
Complete the required fields:
| Field | Description |
|---|---|
| Expense Reason | Enter the purpose of the expense. |
| Category Name | Select the expense category or subcategory. |
| Amount | Enter the total expense amount. |
| Cheque Number | Enter the cheque number if applicable. |
| Voucher Number | Enter the voucher reference number if applicable. |
| Note | Enter any additional information about the expense. |
| Date | Select the date the expense was incurred. |
| Attachment | Upload receipts, invoices, or supporting documents. |
| Status | Leave as Active unless you want to exclude the expense from reports without deleting it. |
Option 1: Record an Unpaid Expense
Use this option when the expense has been incurred but has not yet been paid.
Complete the expense form.
Leave Add Payment? unchecked.
Click Save.
The expense will be recorded as outstanding and can be paid later.
Option 2: Record an Expense That Has Been Paid
Use this option when payment is made immediately at the time the expense is recorded.
Complete the expense form.
Tick Add Payment?
A payment section will appear.
Complete the following fields:
Payment Source
Select where the payment came from:
Account
Choose Account if the expense was paid directly from a business account such as:
Cash Account
Bank Account
Mobile Money Account
Any other business account
Then select the specific account used for the payment.
Advance Payment
Choose Advance Payment if the expense is being settled using funds that were previously paid in advance.
Then select the related advance payment transaction.
Paid Amount
Enter the amount paid toward the expense.
Click Save.
The expense and payment will be recorded together.
Understanding the Accounting Effect
When You Record an Expense Without Payment
The system will:
Record the expense in the Profit & Loss Report.
Create an outstanding payable amount.
Show the unpaid balance under liabilities on the Balance Sheet.
When You Record an Expense With Payment
The system will:
Record the expense in the Profit & Loss Report.
Reduce the selected payment account balance.
Mark the expense as paid if the full amount is settled.
Avoid creating an outstanding liability for fully paid expenses.
Why Recording Expenses Is Important
Accurate expense recording helps you:
Know the true cost of running your business.
Measure actual profit and business performance.
Monitor spending across different expense categories.
Track outstanding expenses that still need payment.
Improve budgeting and cost control.
Maintain accurate financial statements.
Support better business decisions and future growth.
Impact on Financial Reports
Profit & Loss Report
Every expense recorded reduces your net profit. Recording all expenses ensures your profitability is calculated correctly.
Balance Sheet
Unpaid expenses appear as liabilities until payment is made, allowing you to track amounts owed by the business.
Cash Flow Report
Expense payments reduce the balance of the selected payment source and are reflected as cash outflows, helping you monitor business cash movement accurately.
Best Practice
Record expenses as soon as they occur and attach supporting documents such as receipts, invoices, vouchers, or payment proofs. This helps maintain accurate records and improves financial reporting throughout the year.