oboloo Glossary

Crediting An Expense Account

oboloo Glossary

Crediting An Expense Account

Crediting an expense account is the process of accounting for expenses incurred by a business. This usually involves assigning the full amount of the expenditure to a specific expense account in order to track, measure, and monitor the company’s financial performance. Crediting an expense account provides an efficient means of having accurate records of all transactions, which can be used to generate income statements and tax returns. By keeping a record of all expenses, businesses are able to ensure that the right amount is being charged for any given item or service and also accurately assess the impact of such decisions on the business’s overall financial health.