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

# Track expenses

> Record what your studio spends so it shows in your reports and Profit & Loss.

Record what your studio spends: each recorded cost lowers your taxable income at filing time, on every plan.

## Before you start

* You add an expense from **Finances → Transactions**.
* An expense is a studio cost. It's separate from what students owe: recording one never changes an account's balance.

## Record an expense

<Steps>
  <Step title="Open the expense form">
    Go to **Finances → Transactions**, then use **Add Transaction → Expense**. The **Add expense** form opens.
  </Step>

  <Step title="Choose a category">
    Pick a **Category**. It's required, and your choice can reveal a few extra fields. See [Categories](#categories) and [Some categories ask for more](#some-categories-ask-for-more) below.
  </Step>

  <Step title="Enter the amount, date, and description">
    Set the **Amount**, the **Date** the money was spent (defaults to today), and a short **Description**. All three are required.
  </Step>

  <Step title="Add the optional details">
    Fill in any of these:

    * **Vendor**: who you paid. Recommended for tax records, and it autocompletes from vendors you've used before.
    * **Method**: how you paid (**Cash**, **Check**, **Card**, **Bank transfer**, **Digital payment**, or **Other**).
    * **Notes**: anything else worth keeping.
  </Step>

  <Step title="Attach a receipt (optional)">
    Add a **Receipt** under **Receipts**. Harness nudges you to attach one for larger amounts or for travel, the records most worth keeping for taxes.
  </Step>

  <Step title="Save">
    Click **Add Expense**. It lands on your Transactions list right away.
  </Step>
</Steps>

## Categories

The **Category** picker is grouped so the tax distinction is clear as you choose:

* **Schedule C lines**: the deductible IRS Schedule C business-expense categories, in tax-form order (for example **Supplies**, **Rent or lease**, **Office expenses**).
* **Non-deductible business expense**: a separate group for real studio costs that don't reduce your taxable income.

The right group keeps your Profit & Loss clean: deductible costs flow to the Schedule C lines, and non-deductible costs stay out of the Schedule C export.

## Some categories ask for more

A few categories reveal more fields for tax records:

* **Meals**: adds **Attendees** (who was there and your relationship to them). Required.
* **Travel**: adds a **Destination** plus **Start** and **End** dates. All required.
* **Car & truck**: adds a **Vehicle** picker. Required. If you don't have a vehicle on file yet, you're prompted to add one right there. See [Track mileage](/docs/accounting/mileage).

## Where your expenses show

Once saved, an expense appears in three places:

* The **Finances → Transactions** list, with a receipt icon on rows that have one.
* The **Expenses** total in the financial [summary](/docs/billing/understand-your-transactions) at the top of the page.
* The **Expenses** section of your Profit & Loss report, grouped by category. See [Reports](/docs/accounting/reports).

## Edit or remove an expense

Open the expense from the **Finances → Transactions** list. You can edit every field you set when you recorded it: category, amount, date, description, and any category-specific fields. A voided expense is locked and view-only.

## FAQ

<AccordionGroup>
  <Accordion title="Do expenses affect what students owe?">
    No. An expense is a studio cost, separate from billing. Recording one never changes any account's balance or what a student owes.
  </Accordion>
</AccordionGroup>