What is the timing to record expenses?| Explanation of the occurrence and cash principles that you need to know in corporate accounting HR Note editorial articles

What is the timing to record expenses?| Explanation of the occurrence and cash principles that you need to know in corporate accounting HR Note editorial articles

What should I be able to record for expenses and what kind of accounting should I do?In this article, we will explain the content and concepts that can be recorded, and the timing to record for those who tend to be complicated or want to know more about corporate accounting.Let's learn the appropriate expenses and aim for smooth accounting.

table of contents

1.What is expense?

Expenses refer to the costs used to earn income in the business.The larger the amount to be recorded as the expense, the less the tax paid, so it will be a tax saving measure.However, if it is not related to the business, it cannot be recorded as an expense.In general, labor costs, transportation expenses, advertising expenses, etc. are expenses.

▼ If you want to read expenses comprehensively, here is the expense?Explain the basics of expenses, such as expenses that can be recorded in expenses and expenses that cannot be recorded

1-1.The main thing is considered expenses

There are a wide variety of expenses that can be recorded.Here, we will explain the examples of expenses that can be recorded as expenses.


Payments and bonuses paid to employees are expenses as labor costs.In addition to basic salary, various benefits such as commuting allowance, family allowance, rent allowance, and overtime are counted.In addition, you can also record commuter passes, your own products, meals, and lending of company housing.


Expenses can be recorded as a tax and public duty in property tax, business tax, stamp tax, and car tax.Income tax, resident tax, or inheritance tax cannot be included because the taxes and taxes required for individuals or individuals are not included.


Executive expenses that can be recorded include dinner with business partners, incense at ceremonial occasions and celebration money.The cost of tea confectionery and gifts prepared when visiting is also applicable.Companies with a capital of 100 million yen or less have a fixed expenses, up to 8 million yen per year.


Office supplies and personal computers can be recorded as consumable costs.Large furniture such as desk can also be included in the consumable cost.However, there are conditions to record expenses, and the acquisition price is less than 100,000 yen or the available period is less than one year.


Transportation expenses such as taxis, buses, trains, etc. used by employees in business are included in the expenses.In addition, you can also record expenses for accommodation expenses on business trips related to work.Even if you move using an IC card, you can treat it as an expense if you record the fee for the usage section.


Expenses such as telephone, the Internet, and stamps used in business can be counted as communication expenses.If you use an individual Internet or mobile phone for business use, such as introducing a telework system, it is necessary to apportion it with a ratio or calling fee.

There are all other accounts in addition to these, and the way of journal differs depending on the subject.In the "Account and Journal Rules Book" distributed for free on this site, we will explain from basic accounts to journal examples according to the subjects.For those who still have an ambiguous knowledge of accounts and journals, it is a reference book that can be referred to whenever you want, and it is very helpful, so please download it for free from here.

  経費を計上するタイミングとは?|企業会計で知っておきたいaccrual basis・Cashismを解説 HR NOTE編集部 関連記事

1-2.Main things that are not considered expenses

From now on, we will give examples of expenses that are not regarded as expenses, and expenses that are not related to sales or business.Please use it as a guide when you get lost.

1-2 -1.所得税や法人税、住民税など

As mentioned earlier, business taxes and property taxes can be recorded as tax and public duty.However, be aware that corporate taxes for income earned in business activities and income taxes and resident tax liven by individuals are not considered as expenses.


Fine and fouls are not considered as necessary expenses.For example, even if an employee violates speed or parking in a company car during business, the employee himself is fined.Please note that it does not fall under the company's loss.

2.Three concepts related to expenses

When raising expenses, you need to deepen your understanding of the three concepts of accounting.The following is a detailed explanation.

2 -1.accrual basis

Occursingism refers to adding expenses at the timing of transactions and economic value, regardless of money.In order to add books when sales and expenditures are confirmed, it is convenient because it can be recorded evenly by allocation and accounting.Depreciation, which records the acquisition price of fixed assets as expenses, also performs accounting based on the concept of occurrence.


Cashing is the idea of recording expenses at the time of the actual exchange of money.It is a concept that has spread in the era when this account transaction contract was mainstream, so most of the time it is now recorded.However, small businesses are allowed to adopt cash principles only when they meet the conditions, as accounting may be difficult if they are occurring.


Realizationism is a concept that does not record unrealized revenue, but only records the realized revenue.At the stage of the transaction, the profit will be recorded when the sales are deposited due to the unreasonable profit.

In the rules of corporate accounting, the income statement of income stipulated that "unrealized revenue must not be recorded in the income calculation of the current period in principle."Except for some small businesses applied by cash, profits are generally recorded in realization and other costs.

3.Timing of expenses

From now on, I will explain the timing of expenses.Please refer to when you should pay the expenses when actually putting books.

3 -1.accrual basis

If you want to increase your expenses based on occurrence, do the following timing.

3 -1-1.事務用品の購入

Based on the concept of occurringism, consider the cost of the purchased office supplies based on the receipt criteria.It doesn't matter if you have paid the price.When the ordered office supplies are properly delivered, it will be recorded as expenses.If there is no mistake in the items you ordered, you can pay at the time of the inspection.

3 -1-2.クレジットカードによる決済

Based on the occurrence of occurrence, when the payment amount of the credit card is expenses, it is necessary to book books at the time of payment.For example, if you purchase equipment used in business with a credit card in September, the cost is recorded in October of the following month, even if the price is deducted in October.

3 -1-3.サービスや役務など無形のもの

If you are expenses for intangible items such as services and services due to outbreaks, you will be able to book for the first time when the work is completed.If you outsource the input work, you can record the expenses when you confirm the report of the work completion.


Cashing must be recorded at the time of expenditure.Credit card payments are also recorded when the price is deducted from the bank account, unlike the expenses that are paid in terms of payment.Since the cash can be expenses when the cash moves, if you pay the price in advance, you must put it on the book when you pay, regardless of whether or not you receive the product.

4.The principle of expenses in companies is the occurrence of occurrence

In general companies, accounting is performed in accordance with corporate accounting.In the case of the profit and loss statement, "all costs and revenues must be recorded based on their expenditures and income, and processed to be correctly assigned during the occurrence period."Please note that cash -based accounting is not used, except for some small businesses.

4-1.accrual basisのメリット

From now on, we will explain two advantages of "occurrence" that can be expended at the timing of transactions and economic value.


Occurrence is a process that conforms to cost and profit.This allows you to quickly grasp the exact financial situation.In addition, since accounting is performed based on expenses and profits, there is an advantage that fictitious profits cannot be achieved.


Occurrence can accurately record monthly profit and loss.The calculation accuracy of the tax payment amount is high, so it will be useful for financing tax measures and planning a business.

4-2.accrual basisのデメリット

There are also disadvantages in occurrence.Let's make expenses based on the following.

4-2 -1.会計処理が煩雑

Accounting processing is complicated, as expenses are recorded at the timing of expenses and profits, even if they are not exchanging money.It is difficult for beginners for accounting to challenge because it requires bookkeeping and accounting knowledge of double entry bookkeeping.


In some cases, it is different from the actual income and expenditure, as the occurrenceism is not accounting at the time when the cash moves.It is important to note that there is a risk of fraud, such as fictitious transactions and fraudulent expenses.


Most of the companies are raising expenses based on occurrence.Accountingism is difficult to accounting, but if you learn it, you will be able to accurately grasp the financial situation.It is important to simplify your business to process your accounting and finance efficiently and accurately.

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