Recording Operational Expenses, Accruals & Prepayments
Accurately record operating overheads such as rent, electricity, telecommunications, and payroll expenses complying with accrual accounting.
[IMAGE - Expense entry form showing expense category selector, vendor bill attachment, and payment account]
Accrual Matching Principles
Record expenses in the period liabilities are incurred, regardless of when cash disbursements are actually paid.
Accounting & Ledger Impact
| Account Name | Account Code (Code) | Classification | Debit | Credit |
|---|---|---|---|---|
| Rent & Utilities Expense | 5100 | Operating Expense | Expense Amount | - |
| Accounts Payable / Bank Cash | 2010 / 1020 | Liability / Asset | - | Expense Amount |
Note: Proper expense accruals reflect true periodic net income on your income statement.