oboloo Glossary

Crediting Expense Account

oboloo Glossary

Crediting Expense Account

Crediting an expense account is an accounting transaction that decreases the balance of an expense account and increases the balance of a liability or owner’s equity account. In other words, a business may credit their expenses in order to pay for goods or services they have received. The concept of crediting expenses can be applied across a variety of industries and businesses to simplify financial tracking and monitoring. By properly crediting expense accounts, businesses can ensure they are making sound financial decisions.