Recording Expenses

Track what your business spends so your profit and tax position are accurate.

Record an expense

Open Expenses

Click Expenses in the sidebar and choose + New.

Enter the details

• Description of the expense
• Amount (including tax)
• Tax amount — the GST portion, if any
• Supplier (party) — who you paid
• Date and a category/notes if useful

Save

The expense is recorded and flows into your Profit & Loss.

Input Tax Credit (ITC)

When you buy goods or services for your business, the GST you pay can often be claimed back as input tax credit. On an expense you can capture the tax amount and mark whether the ITC is claimable, so you have the figures ready at filing time.

Keep the supplier’s GSTIN on file. ITC depends on a valid tax invoice from a registered supplier — recording the supplier as a party with their GSTIN keeps everything connected.

Expenses vs. fixed assets

• An expense is consumed now (rent, supplies, utilities).
• A fixed asset is a long-lived purchase (equipment, vehicles) — record those separately so they’re tracked as assets. See Fixed Assets.

→ Next: Fixed Assets