Expenses
How expenses affect Cash, M-PESA and Bank/Card balances
Understand how expenses reduce account balances.
Every expense reduces one account balance. That is why choosing the correct account is essential when recording spending.
How balances change
- A Cash expense reduces Cash.
- An M-PESA expense reduces M-PESA.
- A Bank/Card expense reduces Bank/Card.
- The Accounts page uses this to calculate running balances.
- The Dashboard uses this to help compare expected balances with real balances.
Common mistake
- A business owner pays a repair using M-PESA but records the expense under Cash.
- Profit may still reduce correctly because the expense exists.
- But Cash becomes too low or too high, and M-PESA becomes wrong.
- This can create a discrepancy even though the expense amount was correct.
How to prevent balance issues
- Always ask: where did the money actually leave from?
- Choose Cash only for physical cash.
- Choose M-PESA only for mobile money payments.
- Choose Bank/Card for bank or card payments.
- Review spending by account in the weekly insights section.
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Bizwazi helps small businesses record sales, expenses, invoices, inventory, bills, transfers and daily balances so the money makes more sense.