Expense Increase Debit or Credit is an accounting concept that involves recording the necessary financial transactions when a business incurs additional expenses. This could mean an organization is paying more for a product or service, due to rising costs or a change in its standard of quality. When this happens, it’s important to record the expense increase by making a “debit” entry on the company’s books, as well as establishing a corresponding “credit.” This ensures accurate financial records are kept and helps businesses better manage their finances.