Guide to Expenses

Guide to Expenses

What are Expenses?

Expenses records all your payments - by cheque, by cash or directly from the bank. It is good business practice to make all payments by cheque (or electronic bill payment) wherever possible because this gives you a record of your payment. It's the money that's leaving your business.

okke has a miraculously simple system to help you calculate your GST. When entering payments, you record the gross amount (including GST), then categorise it according to the expense type. The GST will be calculated automatically based on the category you assign the entry.

The different GST types are:
  • GST: All business payments subject to GST (other than Capital Purchases)
  • GST Free: Payments to non-registered entities, or where the supply to you is either GST free or Input Taxed so you have not been charged GST
  • Input Taxed Supplies: Payments that you have made in respect of supplies by you that are input taxed
  • Capital Purchases: Purchases of plant & equipment, property or other assets that cost you more than the Tax Office Expense limit. Capital Purchases are further classified as to whether they are taxable, GST-free or Input Taxed. ‘Taxable’ means that GST is included. GST-Free and Input Taxed have the same definitions as above.
  • Non-GST: Payments that are not to be reported on your GST calculation sheet, e.g. salaries & wages, owners’ drawings, or other acquisitions that are not for use in your business.

How to add a new Expense Entry? 

  1. Click on Expenses on the sidebar
  2. Select Add Expense


 
  1. Fill in the relevant fields of the new expense:  
  2. Entry Details: Enter the Date, Amount, Supplier, Reference number (Receipt number), and Description of the payment. Also, select the correct Account

    • Categorise Expense: Select the option that best describes the nature of the payment (You can split the expense and categorise it to multiple accounts if needed using the Split Expense option)
    • Payment Type: Select if it was a bank or cash payment  
    • Attach a Document: Such as a receipt or invoice (Requires Snap and Store paid addon)
  4. Select Save the entry


 

The system automatically calculates the total expenses for the period, making an addition when records are added and a subtraction when they are removed. 

 

How to creating a New Entry through Transactions 

  1. Go to Banking > Transactions on the sidebar. 
  2. Import your bank transactions into okke using Automatic Bank Feeds or Importing your Bank Statement. 
  3. Click the relevant transaction to Create New Entry


 
  1. Choose the Category for the Expense (you can split the expense and categorise it into multiple accounts if needed using the Split Income option)
  2. Add the name of the Supplier
  3. Add a reference number and description
  4. Click Save