Step by step
Record an expense
Record money the business spent outside stock, such as a repair, fuel or a licence, with its VAT and the account it was paid from. A paid expense posts to the books at once.
Rent, power, fuel, repairs and licences are expenses: money the business spends that is not stock. Record each one from its receipt. Once it is paid, Kila posts it to the books, so the profit and loss includes it without anyone typing it in again.
Open Expenses and tap Submit expense
Go to Money › Expenses. The page shows what was spent, paid and waiting for approval. Tap Submit expense.
Choose the branch and the category
Kila asks you to “Record money the business spent. Keep the receipt; its number goes in the reference.” Choose the Branch the money was spent for, and the Category, such as Repairs and maintenance, Transport and fuel, Electricity and water or Licences and permits.
Steps 2 to 7 on one form. Say who was paid
Type the name in Paid to. If they are one of your suppliers, choose them under Supplier instead.
Enter the amount from the receipt
Type the Amount, including VAT, and tap the VAT on the receipt: None, 8% or 16%. Kila works out the VAT in it, such as VAT KES 1,280.00, claimable as input VAT. Check the Date on the receipt: it is today unless you change it, and it cannot be a future date.
Tick Already paid if the money has gone
Already paid says “Record the payment and post it to the books now.” Leave it unticked to record the expense now and pay it later: it waits under To pay.
Choose where the money came from
In Paid from, choose the account the money left: Cash on hand, M-Pesa till or Bank account, or another account the business has added. Under it Kila shows what the account holds: Kila shows KES …. Then type the Reference: the receipt number, M-Pesa code or bank reference.
To use the same account for this category every time, tick Pay this category from this account next time.
Tap Record and pay
Kila says EXP-… recorded and paid, with the expense’s number: “The payment and the journal are posted.” Unpaid, the button says Record expense instead.
Check the expense
Tap the expense in the list. Its history shows who recorded it and how it was paid, and the last line names the journal: Posted to the books in JV-….
Tip
For the VAT on an expense to count as input VAT, KRA needs the supplier’s eTIMS invoice. The expense shows an eTIMS panel with Record eTIMS invoice. See Prepare the VAT return.
This goes for approval
Link to this section: This goes for approvalThe expense is above your expense limit, or your business has every expense approved and your role cannot approve them. Above your limit, the message says It is above your limit of KES … instead. The button says Send for approval, and Kila says “An approver sees it in their inbox. You get a notification when it is decided.” See Approve and pay an expense.
The account would go below zero
Link to this section: The account would go below zeroKila shows less in that account than the expense. Choose the account the money really came from. If the owner paid it from their own pocket, tick Owner’s own money: “Records that the owner put the money in, then the payment.” If you tap Record and pay anyway, Kila asks once more, with Pay anyway.
You chose the wrong account
Link to this section: You chose the wrong accountOpen the paid expense and tap Change where it came from. Kila asks “Where did PAY-… come from?”, with It was really paid from and a Reason, which is “Kept in the audit log.” Tap Change it: Kila posts a correcting entry and leaves the history as it was.
Needs a manager
Only the owner, or someone the owner allows to handle the owner’s money, such as the accountant, can change where a payment came from. Each person’s expense limit is set by the owner: see Set approval limits for a role.
- Approve and pay an expense: for an expense that waits for approval.
- Set up a recurring bill: rent, power and other bills that repeat.
- How money accounts work: cash, M-Pesa and bank, and Paid from.
- Move cash during a shift: money paid out of a till drawer.
- Expenses: the feature and the plans that include it.
- Record a vehicle’s running cost: at a logistics business, a vehicle’s fuel and repairs.
Next: see what the month’s expenses do to profit in Read your profit and loss.