Disbursements are the payments a business makes—everything from rent and salaries to vendor bills. Properly recording these transactions ensures your financial reports accurately reflect cash flow and profitability. Businesses must track both the amount and the purpose of each disbursement. This helps with tax filing, budgeting, and preventing financial discrepancies. Using accounting software can automate disbursement tracking, reduce manual errors, and provide real-time insights into your outgoing expenses. Understanding disbursements is key for healthy bookkeeping and financial transparency.