Expense Credit and Debit is an official business term used to indicate how a company pays for expenses. In short, when you make an expense such as buying a new printer, you either debit or credit the expense. If you debit the expense, it means that you take the money out of your company’s reserves to pay for the expense. This decreases the amount of money in your bank account. On the other hand, if you credit the expense then you increase the amount of money in your bank account – this is done by having customers pay for said item directly. Ultimately, by understanding and using Expense Credit or Debit correctly will help you accurately track and manage your finances in order to make sound business decisions.