Expenses

7. Expenses: Introduction

Mclowd’s EXPENSES tab provides options to ADD A NEW EXPENSE or ADD A NEW PAYMENT.

In accounting terms, an expense is an economic cost incurred through the course of doing business.

Mclowd’s expense entry facility allows you to enter expenses paid directly from your cash or bank accounts, or from prepaid interest, prepaid borrowings or fund formation expense accounts.


NOTES:

  1. Property Expenses:
    Mclowd provides for Property Expenses to be entered via a specific process in order to ensure that they are correctly attached to the relevant property, included in Property Expense Reports, and factored correctly into tax and capital gains calculations.
    Please refer to section 7.1.1 Add Property Expenses for instructions for adding Property Expenses.
  2. Unpaid expenses:
    If the expense you are entering has not yet been paid, it should be entered as a JOURNAL ENTRY on the LIABILITIES tab. When the account is paid, the payment should be entered as a Journal, crediting the bank or cash account from which it is paid and debiting the Accounts Payable or other Creditor account to which the original invoice was allocated.
  3. GST
    Currently, Mclowd does not support automated entry of the GST component of an invoice. If you are registered for GST and need to track the GST component of expenses. Instructions for accounting for GST are included in the instructions for entering expenses. Please refer to Section 7.1.2.

Mclowd’s PAYMENTS facility automates recording of payments of pensions, benefits and transfers out.

 


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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