Expenses are the costs incurred to generate revenues. In other words, a firm records an expense when it disburses cash or promises to disburse cash for an asset or service used to generate income. A manufacturer would record an expense when it pays its employees for producing its products.
Expenses accounts are equity accounts with a debit balance. Expense accounts are considered contra equity accounts because their balance decreases the overall equity balance. In other words, debiting an expense account increases the balance instead of decreasing it like most other equity accounts.
Step to add an expense account in BharatBills
- Click on Income/Expense -> Add Expense Account
- Enter the Account Name
- select the GST% if applicable on that expense account
- Enter the HSN Code, if you want to maintain the HSN code but its not a necessary field
- Search the Parent Name name if you are creating a sub-account for any existing Account.
- If you don’t want any parent account for the newly added account, please ignore this option
- Select ITC (Input Tax Credit) yes or no
- Click on Submit, if you enter the information.
More useful Link
- How to Add Income in BharatBills
- How to Add Expense in Bharatbills
- How to View / Delete Expense/Income Voucher