Expenses and cash movement

Profit is only accurate when expenses are recorded. A short daily habit keeps cash, expenses and reports aligned.

Steps

1. Set up expense categories

   Create categories such as rent, salaries, utilities, transport and repairs. Keep the list short.

2. Record each expense

   Enter the date, category, amount, who was paid and a short note. Attach a bill photo if your product supports it.

3. Choose the payment source

   Select whether the money came from cash in hand or a bank account so balances stay right.

4. Record transfers

   When money moves between cash and bank, enter a transfer instead of an income or expense.

5. Close the day

   At the end of the day, compare the system cash balance with the cash actually in the drawer.

6. Investigate differences

   If the numbers differ, check unrecorded expenses, returns and payments before adjusting anything.

Tips

• Record expenses the same day
• Ask staff to hand in bills with the cash
• Review the expense report each week

Common mistakes

• Paying from the till without recording
• Mixing personal and business spending
• Using one vague category for everything