Hello guys, I am new to accounting as well as manager.io I am looking to record expenses but I have found some information which ended up getting me more confused. I want to record small things like sugar that is being used at the shop or tea bags but I don’t know how to record it. I saw that I shouldn’t be using expense claims as its paid directly by the business, not from someone’s pocket. on some forums, few people talked about using Journal but I am still not sure if its the right thing. can someone please advise me on how to do this.
Who actually pays for the purchases/expenses - the company directly via an invoice or out of petty cash or someone else (employee, director, shareholder,…) who is reimbursed by the company at a later date?
Journals are definitely not the way to go.
the company through cash
In that case, set up a Cash account and use the New Payment button to record the payment
While using payment method to record the cash expense of business, in summary sheet, it is appearing as “Retained Earning”
Can you show the edit screen for the cash payment and a screen shot of your Summary page?
Every income or expense transaction entered affects Retained earnings one way or another. Why do you think what you observe is wrong?
Got the idea of retained earning. Thanks @Tut and Joe91