### So, **all employee expenses booked as Staff Welfare is NOT correct**.
* Salaries and wages should be separately recorded under **salary expenses** or **wages**. * Staff welfare should be for expenses over and above the basic pay.
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### Why correct classification matters?
* For **accurate financial reporting**, statutory compliance, and audit purposes. * Helps in correct costing, budgeting, and tax treatment.
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If you want, I can help you prepare a proper chart of accounts classification or accounting policy note for employee expenses. Want that?