Thank you for your question, and thanks for using JustAnswer.com
If you are a service business, you will not have a cost of sales - you can delete that line and use "expenses"
Cost of sales is the direct costs associated with producing your product. Another term is "cost of goods sold"
So if you made furniture, the cost of sales would be the wood and labor used to manufacture the furniture, and expenses would be all your administrative stuff such as advertising, marketing, accounting, legal, etc
You use cost of sales so that you can show gross profit - which is your profit from making the actual product that you sell.
Does this make sense?
Please ask any questions you may have below, if no further questions please rate my response as "excellent" so that I may receive credit for assisting you today
Thanks , that's what i thought ,, my template listed these incorrectly