In Bylon EMS, distinguishing between Bills and Expenses is important for accurate financial tracking. While both represent money your business spends, they differ in timing and recording methods.

What is an Expense?

An Expense in Bylon EMS records a payment made immediately for goods or services.

Use this when you pay at the time of purchase, such as with cash, check, credit card, or online payment.

Example: Buying office supplies and paying on the spot is an Expense.

What is a Bill?

A Bill represents a purchase you plan to pay for later. It’s a record of money your business owes.

This allows you to track accounts payable and manage future cash flow.

Example: Receiving an invoice for services rendered, with payment due in 30 days.

Key Differences

• Payment Timing:

  • Expense: Payment occurs immediately.
  • Bill: Payment is deferred to a later date.

• Accounting Impact:

  • Expense: Directly reduces your bank account balance upon entry.
  • Bill: Increases accounts payable until the bill is paid.

• Use Case:

  • Expense: For immediate payments like utilities or office supplies.
  • Bill: For purchases on credit, such as inventory from a supplier with net 30 payment terms.