oboloo Glossary

Debiting Expense Account

oboloo Glossary

Debiting Expense Account

Debiting an expense account is the process of recording a financial transaction from a company’s books in which funds are taken out of the company. It is one of two methods used when dealing with expenses, the other being crediting the expense account. Whenever a company purchases supplies, services or other items that cost money, they need to record the transaction and subtract it from their available funds: this is called debiting. The debiting process involves allocating the cost to the correct expense account and subtracting the amount from the current balance. This ensures that the company is kept up to date on its financial status. To sum it up, debiting expense accounts is an important part of maintaining accurate financial records for any business.