Dashboard

How to record income and expenses

Every rand that comes in or goes out tells part of your business’s story. Recording income and expenses keeps that story accurate, and makes sure your reports reflect what’s really happening.

Income, expenses (and assets) – what’s the difference?

Income and expenses are the backbone of your Profit & Loss report.

  • Income (revenue). Sales you’ve earned. In accounting, income is recognised when it’s earned. In practice, that’s usually when you issue the invoice, not only when the cash lands. This is called accrual accounting, and it’s what stub uses.
  • Expenses: Costs that are used up in the same financial year, like rent, stock, software, or internet. They reduce profit in the period they relate to and must be linked to your business and its operations. Some costs, for example prepaid insurance, are spread over the months they cover.
  • Assets: Bigger purchases that will last for years, like laptops, vehicles, or salon chairs. You do not expense these all at once. Record them as Assets, then write them off gradually through depreciation.

Why do these distinctions matter? If you record a R25,000 laptop as an expense instead of an asset, your Profit & Loss will show a dip that isn’t real, and your Balance Sheet will miss a valuable business resource.

Accrual vs Cash: when do you record things?

  • Accrual basis (what stub uses): Record income when it’s earned, for example when you send the invoice, and expenses when they’re incurred, for example when you receive the bill, even if no cash has moved yet. This gives a truer picture of profit.
  • Cash basis: record income when you’re paid and expenses when you pay them. Simple, but your reports can lag behind reality.
Example: You invoice a bride R10,000 in May.
- On accrual, it shows in May, when you earned it.
- On cash basis, you only show it in June, when they pay.

How to record income in stub

You can record income from a bank transaction or manually.

Option 1: Record income from a bank transaction

Use this when the money is already in your feed.

  1. Go to Income. Click Income at the top right, then Choose a transaction. You’ll see your bank transactions by month.
  2. Select the correct transaction.
  3. In the Income form:
    • Type: choose what the money is for.Use Invoice payment if it pays a specific invoice. Use Sales for general sales, Interest Earned for bank interest, Tips & Donations, or Asset sale as needed.
    • Description: short, clear label your future self will understand.
    • Amount: auto-filled from the transaction.
    • VAT: click VAT to add the correct rate if you’re registered.
    • Date: auto-filled from the transaction.
    • Paid to: the bank account will be selected. Leave it as is.
    • Add a Tag, Note, or attach a File if helpful.

4. Save.

What happens in your books. Sales increase, the bank increases, and if you linked it to an invoice, Accounts Receivable is cleared for that invoice.

Option 2: Record income manually

Use this for cash takings, online payment settlements, or income that isn’t in your feed yet.

  1. Go to Income. Click Income at the top right, then Add income.
  2. In the Income form:
    • Type: choose Sales for goods or services, or pick another type that fits.
    • Description and Amount.
    • VAT: add the correct rate if you’re registered.
    • Date: the date you earned the income.
    • Paid to: choose where the money went:Bank account (pick the account), Cash, or Online Payments.
    • Optional Tag, Note, or File.

3. Save.

Heads-up. When you record income manually to Cash or Online Payments, make sure you later match or transfer it to the bank when the money settles, so you do not double count it.

How to record expenses in stub

Your expenses tell the other half of your business story; where your money goes and how it’s spent. Recording them properly helps you track profitability, handle VAT correctly, and keep your reports accurate.

You can record expenses from a bank transaction or manually.

Option 1: Record an expense from a bank transaction

Use this when the payment already shows up in your bank feed.

  1. Go to Expenses from your left-hand menu.
  2. Click the Expense button at the top right, then select Choose a transaction.You’ll see your list of transactions for the month.
  3. Find and select the right transaction.
  4. The Expense form will open automatically. Fill it in:
    • Category – pick what the money was for. Common examples include:
      • Inventory (items you sell to customers)
      • Software & Subscriptions
      • Fuel
      • Rent
      • Bank Charges
      • Contract Workers
    • Description – a short, clear note (e.g. “Shoprite stock” or “Zoom monthly subscription”).
    • Supplier – select an existing one or click + Supplier to add a new one.You can include their address, VAT number, and registration number if you have them. 
    • VAT – click + VAT to apply the right rate if you’re registered.
    • Date – automatically filled from the transaction but editable if needed.
    • Paid from – shows the bank account used.
    • Add optional Notes, Tags, or a supporting File (like a receipt or invoice).

5. Click Save.

stub will automatically match this expense to your bank transaction once saved.

Option 2: Record an expense manually

Use this when you’ve paid in cash, made a purchase that hasn’t appeared in your feed yet, or want to log a bill you still owe.

  1. Go to Expenses and click Expense → Add expense.
  2. Complete the details in the Expense form:
    • Category – choose from options like Inventory, Asset purchase, or an expense type such as Advertising & Marketing, Cleaning, Fuel, Insurance, or Equipment Rental.
    • Description – e.g. “MTN airtime top-up” or “New display shelves.”
    • Supplier – choose an existing one or add a new supplier with their contact details and VAT info.
    • Amount – enter the total amount, excluding VAT if you’re registered.
    • VAT – click to select the correct rate.
    • Date – the date on the supplier’s invoice or payment.
    • Paid from – choose where the money came from:
      • Bank account (select from your linked accounts)
      • Cash (for cash purchases)
      • Online Payments (for SnapScan or card payments through stub)
    • Add Notes, Tags, or upload a File such as a photo of the receipt.

3. Click Save.

If it’s a bill you haven’t paid yet, leave “Paid from” blank. stub will record it under Accounts Payable until you settle it.

What happens in your books

  • Expenses reduce profit on your Profit & Loss report.
  • Bank or cash decreases by the amount spent.
  • If unpaid, the amount shows up under Accounts Payable until you mark it paid.
For example:
You buy shampoo stock for R1,200 at Pick n Pay → record it under Inventory or Stock Purchases.
You pay your monthly software subscription (R300) → record it as Software & Subscriptions.
You buy a salon chair for R25,000 → record it as an Asset purchase, not an expense. stub will track it under Assets and depreciate it over time.

Expense tips

  • Attach receipts. SARS requires supplier invoices for any expense over R5,000. Photos or PDFs are fine.
  • Categorise carefully. Consistent categories make your Profit & Loss and VAT reports cleaner.
  • Keep suppliers organised. Add VAT and registration numbers to simplify future returns.
  • Review regularly. A quick weekly check avoids duplicates or missing receipts.
  • Keep personal and business separate: log personal spend as Drawings, not expenses. Drawings reduce equity, not profit.

Last updated 20 Oct 2025