What’s the Difference Between a Bill and an Expense?

This is a common question!

• Use Bills for invoices you receive from vendors that you will pay later (e.g., your monthly software subscription, a 30-day invoice from a contractor). It helps you track your “Accounts Payable” (money you owe).
• Use Expenses for purchases you make immediately (e.g., buying coffee for a client meeting with your debit card, paying for gas, buying office supplies). There’s no “due date” because you already paid for it.

In short:

• Bill = Pay Later
• Expense = Pay Now