Recording Expenses in Quickbooks Online

 Entering expenses

Recording expenses

Whether it’s a new or existing vendor, cash payment, or bank transfer, clients need to make sure they record their expenses in QuickBooks Online accurately.

Expenses

The QuickBooks Online software provides a functionality wherein the clients can easily record their expenses, bank account withdrawals (inclusive of ACHs or bank fees), and credit card or check purchases. Such transactions are posted as cash-basis, which implies that the expense is recorded as soon as it is incurred and the payment is recorded as paid. Hence, the clients can keep a tab on their expenses in a streamlined manner.

Let’s see how to create a new expense.

Recording expenses

Let’s record an expense for a new vendor.

1.     Go to the Expenses tab within the Expense center

2.     Select New transaction and then Expense

Alternatively, select + New from the left-hand navigation, then choose Expense from there 

3.     In the Payee field, start entering the name of the vendor, or select the down arrow to browse the vendor list

To add a new vendor from this screen, select + Add new from the dropdown.

4.     Enter the correct date in the Payment date field

To specify the type of payment, select it from the payment method dropdown.

5.     In the box under Category, select the correct account from the list 

6.     Next, enter a description of the expense 

7.     Then enter the amount. For clients using QuickBooks Online Plus, it’s possible to make expenses billable to a customer 

8.     Finally, select Save and close

The new expense now appears at the top of the list in the Expenses tab of the Expense center.

 

About checks

The transaction type of checks in QuickBooks Online is the digital equivalent of a bill, allowing for a more efficient and convenient payment experience. This type of purchase records a cash-basis transaction, which ensures that the expense is recorded as soon as it is incurred, and the payment is recorded as soon as it is made. The total amount of the check is posted as a credit, which decreases the balance in the selected bank account. Additionally, individual charges on the check are recorded using specific accounts and Products and Services items. These charges are then posted as debits, which typically increase the balance of an expense account. In the case of a Products and Services item, the charges are posted to their mapped account in the Purchasing Information field in their Expense account. By utilizing the check transaction type, businesses can streamline their payment process and maintain accurate financial records. It is a simple yet effective way to manage transactions and ensure that finances are in order. This feature is especially useful for businesses who need to keep track of their expenses and stay on top of their financial situation. With the check transaction type, companies can enhance their financial management capabilities and operate with greater efficiency.

Creating a check

Let’s see how to record a check in QuickBooks Online. 

1. Go to the Expenses tab within the Expense center
2. Select New transaction and then Check
   
   Alternatively, to record a check quickly, select + New from the left-hand navigation, and choose Check from there.
3. In the Payee field, start entering the name of the vendor or select the down arrow to browse the vendor list
   
   If the vendor is already set up in QuickBooks Online, their business information automatically populates the box below.
4. From the Bank Account dropdown, choose the bank the funds will be paid from
5. Enter the correct date in the Payment date field
   
   Note that the check number is automatically populated based on the last number used. Adjust it if necessary. If the Print later option is selected, deselect it to be able to edit the check number.
6. In the box under Category, select the correct account from the list
7. Next, enter a description for the check
8. Then enter the amount
9. Finally, select Save and close

The check now appears at the top of the list in the Expenses tab of the Expense center.

Printing a check

QuickBooks Online allows for the printing of checks either individually or in bulk, with the added feature of a Print Later checkbox which provides clients with greater control over the check printing process. By selecting this checkbox when creating a new customer invoice, clients can conveniently organize and manage their checks according to their preferences. This added flexibility in check printing serves to further streamline and enhance the accounting and financial management capabilities of QuickBooks Online.

1.     Go to + New, and select Print checks

If this is the first time the client is printing checks, the Print checks setup screen appears. Follow the instructions to adjust the alignment of the check. If there are multiple checks, use this screen to specify how many of them to print per page.

2.     From the dropdown, select the account to pay from 

3.     Enter or amend the Starting check number

If Print later isn’t selected on the original check, a check number appears here automatically. This number follows the last check number saved.

4.     Select Preview and print, then review the check(s) to make sure all the information is correct

5.     Select Print

That’s it.