# Expenses
Track your business expenses in one place. Nifty uses this data alongside your sales to generate [**Profit & Loss**](https://docs.nifty.ai/insights-and-reports#profit-and-loss) statements.
### Where to find it
Go to [**Expenses**](https://app.nifty.ai/analytics?tab=expenses) (in **Analytics**).
### Recording expenses
You can add expenses manually or import them from a spreadsheet.
**Add** — Click **Add**, then enter the date, description, category, and amount for a single expense.
**Import** — Click **Import** in the top-right to bring in multiple expenses via a spreadsheet. We'll give you a template that you can use.
We provide standard business categories plus specialized ones for resellers. When recording travel for sourcing (driving to the thrift store, rideshare to an estate sale), always use **Sourcing Transportation** — this helps us accurately calculate your total cost of goods.
### Mileage tracking
For personal vehicles, you can track either:
* **Actual expenses** — Gas, repairs, maintenance
* **Mileage** — Distance traveled (we calculate the deduction using US or Canadian rates)
Once you choose actual expenses for a vehicle, you must use that method for the vehicle's lifetime.
For rental cars and rideshare, enter the actual expense amount.
{% hint style="info" %}
**Note for Canadian sellers:** The mileage rate lowers after the first 5,000 km. Nifty doesn't currently account for this reduced rate.
{% endhint %}
### Inventory costs
How you track inventory costs depends on your accounting method:
#### Accrual accounting
The cost is recorded when you sell the item.
* Enter **Cost of goods** when creating listings, or after the sale
* Your **Profit & Loss** statement will show a **COGS (Orders)** line item
* Don't add **Inventory Purchases** as expenses — they'll be ignored
#### Cash accounting
The cost is recorded when you buy the item.
* Add purchases under the **Inventory Purchases** category
* Your **Profit & Loss** statement will show an **Inventory Purchases (Expenses)** line item
* You can still add **Cost of goods** to track margins, but it won't affect financial calculations
### Limitations
| Limitation | Details |
| ----------------------- | ------------------------------------------------------- |
| Recurring expenses | No option to set up automatic monthly entries |
| Credit card integration | Can't import expenses from bank or credit card accounts |
| Split transactions | Each expense is one category — split manually if needed |
