In a nutshell:
A bill is money that your business owes but will pay at a later date. An expense is money that your business spends at the time of purchase.
Let me clarify this concept for you.
When you buy a product or service for your business and make the payment immediately with cash, check, or online via credit card, PayPal, or similar, that transaction is recorded as an expense. The funds leave your business at the time of purchase.
However, if you receive a product or service but defer the payment to a later date, this is recorded as a bill. Although you've received the product or service, the money will not be deducted from your business bank account until a later time.
Cybooks offers various reports to track outstanding bills. If you mistakenly record a bill as an expense, it will not appear on these reports.
To demonstrate, let me guide you through entering both a bill and an expense in Cybooks.