Expense accounts are used to track how much money is being spent for various purposes. For churches, this can include salaries, materials for church programs, office supplies, postage, and utilities. These types of accounts also allow for budgeting.
Note: An expense account will be automatically created, along with a corresponding equity and income account, when creating an equity-backed Fund.
To add a new expense account,
- Go into Ledger from the Navigation bar. If your site has multiple books, you'll want to make sure you have the correct book selected in the upper right corner.
- Click the Chart of Accounts tab to view all of your current accounts.
- Click "Add to chart" to open a creation window to the right.
- Enter the account name, and account number, if applicable.
- Under "Create account under", use the drop-down menu to select either the Expense account type or a parent account under the Expense heading further down the list.
- If this account is used for budgeting, check the appropriate box to allow this.
- Click "Save" to confirm the creation of the account.
Note: Once a fiscal year ends, all income accounts will be set back to a zero amount and added to Retained Income.