Definition
An expense is a cost you incur for goods, services, bills, or other needs, such as groceries, utilities, rent, or business supplies. Not every payment or withdrawal is an expense—for example, moving money between your own accounts is a transfer.
Why It Matters
Tracking expenses helps you understand where your money is going, create realistic budgets, and compare spending with income. For a business, accurate expense tracking also helps you understand the cost of operating the business, measure profitability, and maintain reliable financial and tax records.
How This Works in Quicken
Quicken uses expense categories, such as Groceries or Office Supplies, to organize and report your spending. In Quicken Business & Personal, expenses can be designated as personal or business expenses and, when applicable, associated with tax categories. Properly categorized business expenses are included in business reports such as Profit & Loss.