> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aimventory.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Expenses

> Record what your business spends on things like rent, shipping supplies, and software so your profit numbers stay accurate.

Record what your business spends on things like rent, shipping supplies, and software so your profit numbers stay accurate.

**Where to find it:** [Open Expenses in AIM](https://aimventory.com/expenses) — you will be asked to sign in first.

## What you can do here

* Record a business expense with a description, amount, and date
* Sort each expense into a category like Rent, Shipping, or Software
* Mark an expense as paid, or leave it pending until you pay the bill
* Delete an expense you entered by mistake

## Buttons, fields, and controls

| Control               | Where                       | What it does                                                                         | When to use it                                                                           |
| --------------------- | --------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------- |
| Add Expense           | Page actions                | Opens the expense form.                                                              | Use it to record rent, supplies, shipping, software, or any non-inventory business cost. |
| Initialize categories | Setup alert or page actions | Creates the default expense categories for the business.                             | Use it the first time expenses are set up.                                               |
| Edit                  | Expense row actions         | Reopens an expense to correct description, category, amount, date, status, or notes. | Use it when an expense was entered with the wrong details.                               |
| More actions          | Expense row actions         | Opens additional actions for the selected expense.                                   | Use it for row-level actions such as edit or delete.                                     |
| Category              | Expense form                | Classifies the expense for reporting.                                                | Use it so finance totals are meaningful by cost type.                                    |
| Status                | Expense form                | Marks the expense as pending or paid.                                                | Use pending when the bill is known but not paid yet.                                     |
| Save Expense          | Expense form                | Creates or updates the expense record.                                               | Use it after confirming amount, category, and date.                                      |

## How to: Set up your expense categories (first time only)

1. If you see a yellow "Setup Required" message, click "Initialize Categories".
2. This creates a starter set of common categories (like Rent, Shipping, Marketing, Software) so you have something to sort expenses into.
3. Once that is done, the "Add Expense" button turns on and you can start recording.

<Tip title="Real-world example">
  A brand-new store clicks "Initialize Categories" once, then never needs to do it again.
</Tip>

## How to: Record an expense

1. Click "Add Expense" in the top right.
2. In "Description", type what the money was for.
3. Enter the dollar "Amount".
4. Pick the "Category" that best fits this expense.
5. Set the "Expense Date" to the day it happened.
6. Choose a "Payment Status": leave it on "Pending" if you have not paid the bill yet, or set it to "Paid" if you already have.
7. Add any "Notes" if you want a reminder later, then click "Create Expense".

<Tip title="Real-world example">
  You buy \$85 of shipping boxes and tape. Description: "Shipping supplies", Amount: 85.00, Category: Shipping, Date: today, Status: Paid.
</Tip>

## How to: Mark a pending expense as paid

1. Find the expense in the list. Pending ones show a yellow "pending" status.
2. Click the green check button on that row.
3. The status flips to "paid". Use this when a bill you logged earlier finally gets paid.

<Tip title="Real-world example">
  You logged your \$1,200 monthly rent as "Pending" at the start of the month. When you pay it, click the green check to mark it "Paid".
</Tip>

## Good to know

* Recording expenses keeps your profit numbers honest: every expense you enter is subtracted from your sales income, so your reports show what you actually earned, not just what came in.
* Use clear, consistent descriptions (always "Shopify subscription" rather than sometimes "software") so similar costs are easy to spot later.
* It is fine to log a bill before you pay it. Leave it "Pending", then come back and hit the green check once it is paid.
* Deleting an expense (the red trash button) cannot be undone, so only remove ones you truly entered by mistake.

## Where to go next

* [Dashboard](/getting-around/dashboard)
* [Retail Sales](/retail/retail-sales)