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How to Record Expenses in Quickbooks Desktop/Online – Learn the Complete Process

Accurately recording business expenses is crucial for maintaining precise

Accurately recording business expenses is crucial for maintaining precise accounts and can help reduce tax liability by offsetting revenue and profits against costs. One of the primary features of QuickBooks is its capability to track and manage expenses efficiently. In this detailed guide, we’ll explore how to record expenses in QuickBooks. 

What Does Entering Expenses in QuickBooks Mean?

In QuickBooks terminology, expenses are identified from any transaction made through debit card, credit card, bank transfer, net banking, or online payment and must be recorded. 

Recording expenses in QuickBooks is the primary way to monitor how your business expenses are spent and assess your ability to manage future costs. Additionally, recording expenses in QuickBooks simplifies the tax filing process, thereby increasing profitability by offsetting costs against revenue. 

How to Record Expenses in QuickBooks Desktop?

Follow the steps below to record the cash expenses that you’ve already paid for: 

Debit Card/ Check 

  • First, click Banking from the top menu bar, then select Write Checks.
How to Record Expenses in Quickbooks
  • Now, choose the proper BANK ACCOUNT. 
  • Then, select a Payee in the PAY TO ORDER OF field. 
  • Filter the DATE and CHECK NO.
  • After this, navigate to the Expense tab, and choose the Expense Account, and enter the amount. 
  • Lastly, Click Save and Close.  
How to Record Expenses in Quickbooks

Credit Card 

Follow the steps below to record expenses that are paid through a credit card. 

  • First, on the homepage, click the Enter Credit Card Charges icon. 
  • Now, the next screen is the same as the Write Check Screen. 

Note: Here, the difference is that there will be no option to choose a bank account. 

  • Then, select the credit cards you’ve saved in your QuickBooks Account.  
  • Lastly, click on the Save and Close button.   

How to Record Expenses in QuickBooks Online?

Follow the mentioned steps below if you’ve already paid for a business expense and you want to record it in QuickBooks Online:

Important Tip: If you are required to record a list of expenses, you can also enter them directly into the account register. 

1. First, click on the +New tab. 

2. Now, select the Expense. 

How to Record Expenses in Quickbooks

3. Then, select the vendor in the Payee field. 

Note: You can leave the field empty if multiple transactions cover petty cash expenses. 

4. After this, in the Payment Account field, choose the account through which you have paid the expenses. 

5. Now, you must enter the date of the Expense in the payment date field. 

6. In the Payment method field, select the method by which you paid for the expenses. 

7. If you need detailed tracking, you are supposed to enter a ref or Permit number; this point is optional. 

8. Now, in the Tags field, enter the preferred label to arrange your money. 

9.  Then, in the Category details field, insert the expense info. In the Category dropdown menu, choose the expense account through which you track expense transactions. Then, insert a description. 

Note: You can also enter particular products and services in the Item details section to itemize the expenses. 

10. After this, enter the Amount and Tax. 

11. If you decide to bill a customer for the Expense, select the Billable Checkbox and insert the customer’s name in the Customer field. 

12. Lastly, select Save and Close. 

Note: You also have the option to insert notes in the Memo section. These will appear in the account register, on printed checks, and reports.    

Manage Expenses in QuickBooks Online

Follow the mentioned steps below to manage the expenses in QuickBooks Online:  

Edit an expense 

As you’ve already paid for the expenses that you enter into QuickBooks, you can edit them anytime. Moreover, if you plan to bill your customer for the Expense, the edits you did will affect the invoice you send them later on: 

  • First, go to Expenses, and then again choose Expenses.
  • Now, search for the Expense you need to edit. 
  • Then, choose View/Edit in the Action column. 
  • After this, update the translation as needed. 
  • Lastly, choose Save and Close.  

Review your expenses 

If you want to check the income and expenses for each customer, then follow the steps mentioned below: 

  • First, go to Reports. 
  • Now, run an Income by Customer Summary report.  

Delete an expense 

  • First, go to Expenses and choose Expenses. 
  • Search for the Expense you want to delete. 
  • Choose the View/Edit dropdown in the Action column, then choose Delete. 
  • Choose Yes to verify that you want to delete the transaction.  

Note: If you have deleted the Expense, it will disappear from reports, but you can still view a record of it in the Audit log.  

How to Enter Expenses in QuickBooks Automatically?

To Add Digital Receipts and Bills to QuickBooks Online: 

  • First, log in to QuickBooks Online. 
  • Now, click on the left menu and choose Banking and Receipts. 
  • Then, select the option Register your email to get started. You will have access to your account. 
  • After this, attach your appropriate paperwork and send it in the body of an email. You can click pictures of paper bills and then send them or forward them in an email ( like an online purchase, Uber ride, etc. ). If you’re sending a file, it should be a jpeg, jpg, gif, pdf, or png. Keeping records of the file type you use will help ensure that your documents are uniform.  
  • This process might take a few minutes, and if something doesn’t work, you will receive an email informing you that the account has entered your expenses.    

Take a Snap a Receipt from your Mobile to add a Paper version to your records.

  • First, install the Online app. 
  • Now, open the app, and click on the menu. 
  • Then, click on Receipt snap. 
  • After this, tap on the Receipt Camera and click a photo of your receipt. 
  • Lastly, click on Use this photo, then Done. 

How to Enter Expenses in QuickBooks Manually

Follow the steps below to enter the expenses in QuickBooks manually: 

  • First, open a web browser, then sign in Online.
  • Now, navigate to the Banking and Transactions options. 
  • Then, choose the Receipts tab. 

Note: You can also drag pages directly into QuickBooks Desktop or Online or choose Browse to upload them.    

How to Record Business Expenses Paid Personally in QuickBooks Online

There are two methods through which you can record a business expense paid personally: 

Method 1: Journal Entry 

  • First, click on Accounting and select Charts of Accounts from the left side of the menu. 
How to Record Expenses in Quickbooks
  • Now, look for the Owner’s Investment account. 
  • Then, on the right side, click on View Register. 
  • Click on the Add journal entry option.  
  • After this, fill in the transaction details: 
  1. DATE: Enter the date of the transaction
  2. REF NO.TYPE: This section is optional
  3. PAYEE ACCOUNT: Enter who was paid  
  4. MEMO: This section is optional
  5. INCREASE/DECREASE: Enter the amount of money that has been added or removed from the account
  6. ACCOUNT: Enter the payee account this falls under
  • Lastly, click on the Save option. 

Method 2: Petty Cash Account Expense 

  • First, click Accounting, then Charts of Accounts from the left side menu. 
  • Now, click on the green New button. 
How to Record Expenses in Quickbooks
  • Then, create a Petty Cash Account
  1. Account Type: Bank
  2. Name: Petty Cash 
  3. Detail Type: Cash on hand
  4. DESCRIPTION: Optional
  • Tap on the Save and Close option. 
  • Click on the View Register option for the Petty Cash account. 
  • After this, click Add check. 
  • Choose Expense from the dropdown menu. 
  • Now, fill in the transaction details: 
  1. DATE: Enter the date of the transaction
  2. REF NO. TYPE: This section is optional
  3. PAYEE ACCOUNT: Enter who was paid 
  4. MEMO: This section is optional 
  5. PAYMENT: Enter the amount spent 
  6. ACCOUNT: Enter the payee account this falls under
  • Then, tap on the Save option. 
How to Record Expenses in Quickbooks
  • In a month or year 9it your choice) Go to your Petty Cash account using the Bank Register option.
  • From the dropdown menu, click Add Expense and choose Deposit. 
  • Now, enter the Owner’s Investment as the Deposit account. 
  • The deposit amount should be equal to the end balance of the account in the upper right-hand corner. 
  • Lastly, click on the Save option.  

Automating Recurring Expenses in QuickBooks

Automating recurring expenses in QuickBooks streamlines your financial management by ensuring consistent and timely recording of regular transactions. Mentioned below is one example:  

Set up Autopay for recurring invoices in QuickBooks Online.

QuickBooks Online’s Autopay allows customers (payors)  to make their payments for recurring invoices automatically if QuickBooks’ payments are turned on. Customers have the option to sign up and enter their payment information through the invoice once. Their payment will process automatically for future recurring invoices. 

Step 1: Set up recurring invoices

Autopay is accessible on pay-enabled recurring invoices. If you don’t have invoices set up to recur, follow the mentioned steps below: 

  • First, create an invoice, then choose Make recurring, or you have the option to create a recurring template. 
  • Now, navigate to Interval and choose how frequently the invoice should recur.

Note: Autopay isn’t accessible for recurring invoices with a Daily interval or for amounts over $5000. 

  • Then, insert the start and end date of the recurring invoice. 
  • After this, complete the rest of the income, then choose the Save template. 

If you previously had a recurring invoice setup, you are not supposed to create a new one. 

Important: You have the option to edit recurring templates with Autopay set up. If you try to change any of these fields, Autopay will get canceled: 

  • Total amount
  • Frequency
  • Terms
  • Payment options
  • Email address
  • Customer name

If Autopay gets canceled, your customer will receive a cancellation email for future Autopay transactions.  

Step 2: Help your customers set up Autopay

Your customer will get the invoice email normally, but now they will receive the option to set up Autopay. 

The Autopay option can only be established for the full amount. By any chance your customer edits the amounts, then the Autopay option doesn’t display.   

Customers are required to have their own Intuit account; follow the steps given below if you don’t have one. 

  • First, to set up Autopay, customers are required to open their invoice and choose Set up autopay to enroll. 
  • Now, the customer needs to sign in using the Intuit user ID. 
  • Then, the customer needs to make sure that the autopay checkbox shows as selected and displays the accurate frequency and start date. 
  • Lastly, the customer needs to choose the Autopay button to pay the recent invoice. They’ll get a confirmation email that Autoplay is set up.   

Step 3: Check the autopay status of your customer

You can verify if Autopay is set up for an invoice in the Activity Tracker.  

  • First, navigate to Sales, then Invoices. 
  • Now, search for the invoice you want to check for payment status. 
  • Choose the Status of that invoice to open the activity tracker panel.   

If your customer set up Autopay, then you’ll view Autopay Scheduled status under the Invoice activity section. 

Auto payments are subtracted 

  • Three days before the invoice due date. 
  • Immediately if the due date is less than three days away. 
  • As soon as the recurring template creates the invoice, if it is due on receipt. 

Note: For every successful payment, you’ll receive an email confirmation.

What Are The Benefits Of Using Quickbooks To Record Expenses?

There are many advantages of using QuickBooks to record expenses, some of them are mentioned below: 

  • Extensive financial management
  • Simpler reporting for businesses
  • Streamlined expense tracking  

It enables businesses to precisely track their spending, effectively categorize expenses, and effortlessly generate reports that offer insights into their financial health. QuickBooks also allows businesses to automate transaction categorization, saving time and minimizing errors in expense recording.    

With its user-friendly interface and customizable features, QuickBooks offers businesses a seamless way to manage their expenses and make informed financial decisions. Additionally, its integration with other financial tools and platforms boosts the overall efficiency of expense management and financial reporting processes. 

Maintaining business expenses well is crucial for accurate finances and tax benefits. QuickBooks simplifies expense tracking for businesses. By entering expenses in QuickBooks, businesses can ensure that their finances are in order and gain insights into their financial situation. This helps businesses make better decisions for their growth and profitability. 

By : June 19, 2024
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