How to Enter Expenses in QuickBooks

QuickBooks accounting application comes in both desktop and online versions. While the desktop version application has an offline working mechanism and the online version is an internet-based application.

What is QuickBooks Online

QuickBooks Online is a web-based version of QuickBooks. It is a multi-user-based program and can handle up to 25 users at a time. It has extended real-time basis reporting features and functions and a lively user interface.

How to start over with QuickBooks online

To start over QuickBooks online, you need to follow a certain step of instructions, which are-

⮚    Buy a new subscription to QuickBooks Online (QBO).

⮚    When you are done buying QBO, set up the new company file.

⮚    Get the chart of accounts customized.

⮚    Import the required list of products and services. List of customers. List of vendors or else.

⮚    Get your company settings and invoices customized.

⮚    And the process is finished.

Difference Between QuickBooks Desktop and QuickBooks Online

The major difference between QuickBooks Desktop and QuickBooks online is the difference between web or internet. While the former one needs installation and the latter one can be run in real-time. QuickBooks Desktop is basically for product-based businesses as the inventory works better in the desktop version. On the other hand, QuickBooks online works better with service-based businesses, or the ones who prefer to use multi-user programs opt for QuickBooks online.

Why choose the online version

You can choose QuickBooks online if you do not have any complicated invoice or bill requirements or do not need to keep a track of your inventory. It usually works better with service-oriented organizations. The customized tools allow small business owners to run their businesses smoothly

Entering and managing expenses in QuickBooks Online

It is quite easy to enter and manage expenses in the QuickBooks Online application.

⮚    Under the expenses tab, move to the Expenses menu. This is the place where you can enter, omit or edit expenses of your business.

⮚    Once you learn the process, it becomes handy to use.

⮚    Keeping a track of your business’s revenue and expenditure provides a better picture of your business status and profit margin.

⮚    You can track your business sales as well under this section.

⮚    In case if you are confused about your expenses. Let me give you an example- If you have already paid for a business expense, it will be your entry for an expense. Enter it as an expense.  While on the other side, if you are planning to pay for an expense in the future, you will enter it as a bill.

Let us learn how to enter, manage, or delete an expense and the difference between checks, bills, and expenses in QuickBooks Online

Entering an Expense

Follow the below steps if you have already paid for an expense and you need to make an entry for the same-

• Select Add New or + New, click on Expense.
• Under the Payee tab, select the vendor.
• Go to the Payment account field, select the amount you want to pay for an expense.
• Enter the date of expense, under the Payment date option.
• Define your method of expense which means how you have paid your expense in the Payment method option.
• Select a preferred label to categorize your expense, under the Tags option.
• Further, enter your expense info in the Category Details tab. From the Category drop-down menu select the account of expense you are using to track expense transactions. Provide description.
• Itemize your expense in the Item Detail tab.
• Enter the Amount and tax info.
• If you plan to pay an expense later, select the Billable option and enter the customer name in the customer field.
• Save and close once you are done with the above step.

Important Point: If you need to enter multiple entries, you can record them directly to the account register.

How Can you Edit, Review & Delete Expense in QuickBooks?

Let us learn it one by one-

How to Edit an Expense

Sometimes you need to edit or correct your expense figure provided, feel free to edit them anytime under the expense menu. Follow the steps below-

• Jump to the Expenses menu, select the expenses option.
• Look for the expense you need to edit. Click view or edit in the action section.
• Click update.
• Save and close.

How to Review your Expenses

• To review your expenses, jump to the Reports menu.
• Try running an Income by Customer Summary report.

How to Delete an Expense

For that matter-

• Jump to the Expenses menu and click on the Expenses tab.
• Look for the expense entry you need to delete.
• Select Action from the drop-down menu.
• Click Delete.
• Select Yes to confirm the delete.
• Once you are done deleting an expense, it goes away from the reports. But you can see it in the Audit log.

Wrapping Up

Now, when you know how to enter expenses in QuickBooks online and what is the difference between expenses and bills or invoices, you can track your transactions easily. Still not able to do, contact us anytime our QuickBooks experts will help you out.

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