Understanding Expenses

This document provides a high-level overview of how expenses work in Zoho ERP and its benefits.

What is an expense?

In Zoho ERP, an expense refers to any cost incurred by a business during its daily operations. It represents money spent in an organization on goods or services, such as rent, utilities, travel, meals, office supplies, or subscriptions. Recording expenses helps businesses track spending and understand where their money is going. These expenses can later be reflected in financial reports.

Key Benefits of Expenses

Keeps financial records accurate and up to date.
Provides clear visibility into business spending.
Helps calculate profits and taxes correctly.
Improves overall financial decision-making.

Types of Expenses

Zoho ERP supports different types of bills to handle various business and compliance scenarios.

Recurring expenses: Recurring expenses are regular, repeating costs that occur on a fixed schedule.
Mileage expenses: Mileage expenses are used to track travel costs based on distance travelled for business purposes.
Itemized expenses: Itemised expenses allow you to record multiple items or services within a single expense entry, with each item listed separately along with its cost and tax.

Difference Between Admin Expenses and Bills

Although both admin expenses and bills represent business spending, they are recorded differently based on how and when the payment is made.

Bills	Admin Expenses
Recorded when goods or services are received from a vendor but payment is not made immediately.	Recorded for expenses incurred by administrators on behalf of the organization.
Create a payable to the vendor.	Do not create a payable.
Paid later and tracked under accounts payable.	The amount is already paid at the time of recording.

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