Money spent isn't always an expense

Why paying a bill or getting paid back doesn't always change your income or expenses.

Most expense trackers count every peso, dollar or euro that leaves your wallet as spending, and every amount that arrives as income. That makes the numbers look simple, but it gets two things wrong:

Money spent isn't always an expense.
Money received isn't always income.

Accountant keeps these apart, so your Profit & loss shows what you really earned and spent, and your Cash flow shows where the money actually went.

When money out is not an expense

An expense is something used up that makes you poorer: food, rent, electricity, interest. Money that leaves an account without making you poorer is not an expense:

Situation	What it really is	Use
Paying your credit card bill	Paying off a debt. The groceries you charged were already counted as expenses when you bought them.	Pay money, with the credit card as the item
Paying the principal part of a loan installment	Paying off a debt. Only the interest part is an expense.	Record payment in Loans
Moving money to savings, an e-wallet or a foreign-currency account	Moving your own money	Transfer money
Lending money to a friend	A new receivable: they owe you	Pay money, with a receivable account as the item
Buying shares, crypto or a property	Swapping one asset for another	Pay money, with an investment or asset account as the item

Counting these as expenses double-counts your spending (the card bill) or makes your savings look like a loss.

When money in is not income

Income is something earned that makes you richer: salary, business income, interest, dividends. Money that arrives without making you richer is not income:

Situation	What it really is	Use
A client pays an invoice you already recorded	Collecting a receivable. The income was counted when you did the work.	Receive money, with the receivable account as the source
A friend pays back a loan	Collecting a receivable	Receive money
Receiving a loan from a bank	A new debt	Receive money, with a loan account as the source
Withdrawing from savings	Moving your own money	Transfer money
Selling something you own	Swapping one asset for another (any gain or loss aside)	Receive money

How Accountant helps

When you add an item to a payment, the account picker has two tabs. Expense lists your expense accounts, with the reminder "Choose only if this amount hasn't been recorded as an expense yet." Other accounts lists everything else, such as cards, loans, receivables and investments. Receive money works the same way with Income and Other accounts.

For income you've earned but haven't been paid for yet, use Record income due. For a purchase you'll pay later, use Buy on credit. When the money finally moves, record it with Receive money or Pay money against the receivable or the card, and it won't be counted twice.

See The six transaction types for every case.

An accountant's note: this is accrual accounting in miniature. Income and expenses are recognized when they're earned or incurred, not when cash moves. The Profit & loss report follows that rule; the Cash flow report shows the cash movements.