FAQ: Recording Expenses
Quick answers to common questions about entering and managing expenses.
Q: What's the difference between an expense entry and a bill?
An expense entry is a quick, one-off record in your ledger. A bill is for purchases from a vendor and tracks the item details, quantity, and due payment terms. Use a bill if you're ordering from a vendor; use an expense entry for miscellaneous costs (office supplies you bought with cash, a repair you paid for, etc.).
Q: Can I edit an expense after I've posted it?
This depends on your accounting policy. Some systems allow editing unposted entries; others require you to delete and re-create. Ask your accounting administrator if you made a mistake. Do not delete without approval if your records are audited.
Q: Which account should I use—cash or bank?
If you paid with physical cash from a cash drawer, use your Cash account. If you used a bank transfer, check, or card, use your Bank account. If you're unsure which bank account (many companies have multiple), check your chart of accounts or ask your accountant.
Q: Can I record an expense with a future date?
Yes, but use caution. Record expenses on the date they actually occurred, not when you enter them in the system. Future-dated entries can distort your reports and confuse audits.
Q: What if I enter the wrong amount?
If the entry is unposted, you can edit it directly. If it's already posted, ask your administrator—you may need to create a correcting entry (often called a reversal and correction). Do not manually delete posted entries.
Q: Should I record a refund as a negative expense?
No. If you receive a refund for a returned purchase, create a new entry (or adjust the original bill) and debit the payment account (increasing cash) and credit the expense account. Consult your accountant for the correct treatment.
Q: Why does my expense not appear in the chart of accounts balance?
Check that you posted it (not just saved as a draft). Also confirm you selected the correct expense account. If the balance still doesn't match, ask your accountant—there may be a filtering or approval step.
Q: Can I bulk-enter multiple expenses at once?
Most systems require entering them one at a time through the interface. If you have a large volume of similar expenses, ask your administrator if a bulk import tool is available.
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