Glossary
Expense
An expense is money you pay to keep the shop running, such as rent, electricity and wages, and it is not part of the price of goods.
What it means for a shop owner
You carry it whether you sell or not, which is why it is often called a fixed cost. Record it under a category (rent, power and so on) so it appears in the profit and loss, because an unrecorded expense makes profit look bigger than it is.
A worked example
Rent 800, electricity 120 and wages 1500 in a month. Total expenses = 800 + 120 + 1500 = 2420.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes