What Do You Mean By Outstanding Expenses?

An expense could be defined as a monetary sum that needs to be paid. It is the opposite of income (money coming in), an expense would be money going out, owing or due to go out. For example, putting fuel or gas in your car could be described as an expense as it would cost you money to pay for the gas, and this money is an expense. More specifically an expense is money owed for something that you have already done or already own. Therefore an outstanding expense is an amount of money that is owed has yet to be paid. It would be money that was supposed to be paid but, for whatever reason, the transaction has not been done or completed, leaving money owing.

• What is an example of an outstanding expense?

An example of an outstanding expense could be a utility bill. If you own a house and are responsible for paying the bills then you will have been using some form of gas or electricity in the house for heating, cooking and lighting. At the end of each month or quarter a utility bill will be sent to the homeowner stating that a utility has been used and that this utility now needs to be paid for. The money owed here is an outstanding expense. If the bill continues to go unpaid, then the amount continues to be an outstanding expense until it has been settled. It may be that an 'outstanding expense' letter is even sent that acts as a reminder or prompt to pay the money that is owed. Similarly, it is possible to have outstanding expense on a credit or store card, on a tab at a bar or within business for a service used.