Financials > Expenses is where you record money the organization has paid out - for example, writing a check to a landscaper. It lives under the Financials section of the left-hand navigation, alongside Manual GL Entries, Budgets, Reports, Chart of Accounts, and Bank Reconciliation.
When would I use this?
- Paying a landscaping or snow removal contractor after work is completed.
- Recording an insurance premium payment.
- Logging a reimbursement or a one-off vendor payment that does not come with a formal bill in the system.
Steps
- Go to Financials > Expenses and click + Create Expense.
- Fill in Payee Name (required - who was paid, for example "Green Thumb Landscaping"), Date Paid (required - the day the payment was made; it cannot be a future date), and Amount Paid (required).
- Choose the Expense Type that best matches what was purchased. This is a search box that lists expense accounts only, each shown with its account number, name, and a short description (for example, "5200 - Grounds Maintenance"). Type to filter the list, or scroll to browse. In the Expenses list this is the Expense Account column. Options include Administrative - General, Insurance, Grounds Maintenance, Snow Removal, Utilities - Common Areas, Repairs & Maintenance, Pool Maintenance, Reserve Contribution, Bad Debt Expense, and Bank Fees.
- Choose the Liability Account this expense affects - another search box, for example "2000 - Accounts Payable" (bills owed to vendors), Deferred Revenue, Accrued Expenses, Security Deposits Held, or Sales Tax Payable. Think of this as "what kind of obligation is this?"
- Optionally add a Check/Reference # (for example, check number 2051) and Notes (for example, "October lawn and shrub service"), then click Submit.
After submitting
A confirmation reads "Payment entry has been created successfully." with Leave and Create Another buttons - Create Another re-opens a blank form immediately, useful when entering several expenses from the same batch of bills. The new expense appears in the Expenses list with the status Pending.
What happens in your books
Recording an expense posts to your books automatically - you do not need a separate Manual GL Entry. The Expense Type account is debited (increased) and the Liability Account you chose is credited (increased). For example, a $450.00 Grounds Maintenance expense charged to Accounts Payable adds $450.00 to Grounds Maintenance expenses and $450.00 to Accounts Payable, and both appear on reports such as the Trial Balance.
If you made a mistake
A recorded expense can be corrected from the Expenses list. The Payee Name, Check/Reference #, and Notes can be edited - see "How Do I Edit an Expense?" The Amount Paid, Date Paid, and Expense Type cannot be changed. If one of those is wrong, void the expense and record a new one - see "How Do I Void an Expense?" To find the expense later, see View and Filter the Expenses List.