Expenses are your running costs — rent, wages, power, transport. Until they are recorded, Profit and Loss shows gross profit only and your net profit looks better than it is.
- 1Create expense categories that match how you think about your costs.
- 2Record each expense against a category, with its date.
- 3Read them back in Reports > Expenses, and as the Operating Expenses line in Profit and Loss.
Bank Accounts records the accounts money moves through, and shares its access rights with Expenses.
Expenses are dated by when the cost belongs, not when you typed it in. Backdate them and your monthly figures stay meaningful.