Expense Types

Expense types and expense categories are classifications used in accounting and financial management to organize and track expenses incurred by a business. They help in budgeting, expense analysis, and financial reporting.

Expense types refer to an expense's specific nature or purpose. They categorize expenses based on their purpose.
Examples of expense types include:
Travel expenses
Office Supplies
Equipment maintenance
Marketing expenses
Utilities
Salaries and wages
Rent

Merchants or vendors are typically linked to expense types through the worker order or expense process.

Expense Categories

Expense categories are broader classifications that group similar types of expenses. They provide a higher-level view of where money is being spent and are often used to organize financial statements and reports.

Examples of expense categories include:
Benefits
Office
Utilities