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Record expenses

Rent, electricity, fuel, salaries paid in cash, tea and repairs: costs that are not purchases of goods for sale. Each expense lowers profit, and its GST can be claimed when the bill allows it.

Step by step

  1. Open the form. Dashboard › Quick add › Expense, Purchases and expenses › Expense, or press E.
  2. Date, Expense type and Amount (₹). Type the kind of expense (rent, power, fuel…). Use the same words every time, so the reports add them together.
  3. Paid by. Cash, UPI, Cheque, Bank transfer, Card, Demand draft, Other, or Not paid yet (on credit).
  4. Paid to and Bill / receipt no. Who you paid and their bill number.
  5. GST. If the bill has GST, choose GST included in the amount (%). Tick I will claim input tax credit on this GST if it is a GST invoice in your name, and Bill from another state (IGST) if it is.
  6. Save. It shows in Purchases and expenses, the cash or bank book and profit and loss.

Worked example

Electricity bill ₹1,850 paid by UPI. GST does not apply to electricity, so leave GST empty. Shop rent ₹8,000 paid in cash to a landlord who is not GST registered: no GST either. Both appear in profit and loss under expenses: Electricity ₹1,850 and Rent ₹8,000.

A repair bill of ₹1,180 with GST 18% included: the App splits it into ₹1,000 + ₹180 GST; with ITC ticked, ₹180 becomes input tax credit and only ₹1,000 is the expense.

Common mistakes and how to fix them

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