Expense

What is Expense?

Expense is the cost incurred by a business in generating revenue, including items like salaries, rent, utilities, raw materials, and depreciation. Expenses are recorded in the profit and loss statement and reduce net profit. Proper expense categorization and tracking is essential for cost control, budgeting, and tax compliance. In Tally, expenses are recorded through various vouchers (payment, purchase, journal) and classified under expense ledgers.