An expense is incurred when money goes out of your company’s pocket. Whether it is a purchase you have made, your net discount or the indirect expenses you incurred such as rent or depreciation.
To better understand expenses, let’s imagine a company that produces wooden benches. The purchase of the wood and the wages of the workers are examples of direct expenses. When less chairs are produced, the cost of wood and the wages workers should go down. When more benches are produced, the cost of wood and the wages of workers should go up. In the same way the cost of rent and any depreciation should be categorized as indirect expenses.
On the Giddh dashboard, expenses are represented as graphs comprising of 3 crucial bars: purchases, discount & indirect expenses. When you move your cursor on these bars, the amount of that particular expense for that particular financial year would be displayed with the last year’s. Below the bars, your total expenses of this year along with last year’s total expenses would be shown.