Managing expenses on QuickBooks Online

Management steps

Managing expenses in QuickBooks Online is an essential task for recording and keeping track of your business's spending. Here’s a step-by-step guide to manage expenses in QuickBooks Online:

Step 1: Log in to QuickBooks Online

• Open your browser and navigate to QuickBooks Online.
• Log in to your QuickBooks Online account.

Step 2: Go to the Expense Section

1. On the left-hand sidebar, click on "Expenses".
2. Then, click on "Expenses" again from the dropdown menu. This will show you a list of all recorded expenses.

Step 3: Click "New Transaction"

1. In the upper right corner of the "Expenses" page, click on the "New Transaction" button.
2. From the options that appear, select "Expense". This allows you to record a new expense.

Step 4: Choose the Payment Method

In the "Expense" window, you will be asked to provide the following information:

• Account: Choose the bank or credit card account from which the expense was paid. This could be a linked bank account or a credit card.
• Payment method: Select the method you used to pay for the expense (e.g., Credit, Debit, Check, Cash).

Step 5: Fill Out the Expense Details

• Payee: Choose the vendor or payee from the drop-down list. If it’s a new vendor, you can click "Add new" to enter the name.
• Date: Set the date of the expense.
• Payment type: Choose how you paid for the expense (e.g., Debit, Credit Card, Cash, Check).

Step 6: Add the Expense Categories

1. Under Category, select the appropriate account where the expense should be recorded (e.g., Office Supplies, Utilities, Rent, etc.). If you need to create a new expense category, click on "Add new".
2. Enter the Amount of the expense.
3. Optionally, add a Description for further details (e.g., "Laptop repair").

Step 7: Attach a Receipt (Optional)

• If you have a receipt or any supporting document, you can upload it by clicking "Attach a file". This is a great way to keep track of all related paperwork.

Step 8: Tax (Optional)

• If your expense is taxable, you can add the relevant sales tax in the Tax column. Choose the correct tax rate based on the vendor or service.

Step 9: Save the Expense

• Once you’ve completed all the necessary fields, click "Save and Close" to finish recording the expense.
• If you want to record another expense, you can click "Save and New" to enter another transaction.

Step 10: Review and Confirm the Entry

• You can view and manage all your expenses in the Expenses tab, where you can also filter by date, vendor, or expense category.

Additional Tips

• If you need to split the expense across multiple categories, click "Add new line" to add more categories and amounts.
• If you have recurring expenses (e.g., subscriptions), you can set up recurring transactions in QuickBooks to save time.

By following these steps, you will successfully record and categorize your expenses in QuickBooks Online, making it easier to manage your finances and stay organized.

Advanced Features of Managing Expense

QuickBooks Online offers a variety of advanced features to help you better track, manage, and optimize your expenses. These features provide deeper insights into your business finances, streamline your workflow, and enhance your overall financial management. Below are some advanced options you can use when recording expenses:

Attach Receipts to Expenses

• Feature Overview: QuickBooks Online allows you to attach receipts directly to your expenses for future reference or audits. This can be done manually or via the mobile app.
• How to Use:
  1. When entering an expense, click “Attach a file”.
  2. Upload an image or PDF of your receipt.
  3. QuickBooks can automatically extract key details from receipts, like date, amount, and vendor (this requires the QuickBooks mobile app or receipt management feature).

Track Expenses by Project or Job

• Feature Overview: If you run a project-based business, you can assign expenses to specific projects to track profitability and project costs.
• How to Use:
  1. In the expense entry form, go to the "Customer/Project" field.
  2. Select the Project or Job associated with the expense.
  3. This allows you to track project-specific expenses and analyze the costs related to each job.
• Advanced Tip: Use Project Tracking to see if your projects are staying within budget and to report on project profitability.

Split Expenses Across Multiple Categories

• Feature Overview: You can split a single expense across multiple categories to ensure that all portions of the expense are correctly accounted for.
• How to Use:
  1. While entering an expense, click "Add another line" in the Category section.
  2. Allocate the total expense amount across multiple categories (e.g., part of the cost goes to Office Supplies and part to Travel).
• Advanced Tip: This is useful for mixed expenses like meals or travel where different parts of the payment are deductible under different categories.

Set Up Recurring Expenses

• Feature Overview: If you have regular, recurring expenses like rent or subscription services, you can set them up to automatically repeat on a schedule.
• How to Use:
  1. Go to the Gear icon > Recurring Transactions.
  2. Click New, select Expense, and configure the frequency (e.g., monthly, weekly).
  3. Choose the vendor, payment method, categories, and amounts.
• Advanced Tip: Use this feature for subscription services, utilities, and any other regular payments to save time and avoid missing due dates.

Record Credit Card Expenses

• Feature Overview: If you make business purchases using a credit card, you can link your card directly to QuickBooks Online for automatic expense tracking and easy reconciliation.
• How to Use:
  1. Go to the Banking tab and click Add Account.
  2. Link your credit card account to QuickBooks.
  3. Once linked, QuickBooks will automatically pull in transactions from your credit card and categorize them.
• Advanced Tip: After categorizing, you can review and reconcile credit card expenses with ease. This also simplifies your financial reports.

Use Classes or Locations for Expense Tracking

• Feature Overview: QuickBooks Online allows you to track expenses by Class or Location, which is useful for businesses with multiple divisions, departments, or physical locations.
• How to Use:
  1. Enable Class and Location tracking by going to the Gear icon > Account and Settings > Advanced > Categories.
  2. When entering an expense, choose the relevant Class or Location from the respective dropdown fields.
• Advanced Tip: This is perfect for businesses with different departments (e.g., Sales, Marketing, Operations) or those operating in multiple geographic regions.

Billable Expenses

• Feature Overview: You can mark certain expenses as billable to customers, so you can later add them to customer invoices for reimbursement.
• How to Use:
  1. When recording an expense, check the Billable checkbox.
  2. Select the customer who will be billed for the expense.
  3. The expense will now show up in your customer’s profile and can be added to invoices.
• Advanced Tip: If you’re managing multiple clients or projects, ensure to properly track billable expenses so you can recover costs from clients or customers.

Track and Manage Vendor Credits

• Feature Overview: QuickBooks Online allows you to record vendor credits (returns, rebates, or discounts) and apply them to future bills or expenses.
• How to Use:
  1. Go to Expenses > Vendors > New Transaction.
  2. Select Credit to record a credit from a vendor.
  3. Enter the details of the credit, and either save it to be applied later or apply it directly to an outstanding bill.
• Advanced Tip: This is particularly useful when you return goods to suppliers or receive rebates, helping you keep accurate expense records.

Track Mileage Expenses

• Feature Overview: QuickBooks Online integrates with the QuickBooks mobile app to track and log mileage, which is useful for business-related travel expenses.
• How to Use:
  1. In the QuickBooks Online mobile app, go to the Mileage tab.
  2. Log your miles manually or use Automatic Tracking for a more accurate record.
  3. You can categorize mileage under Travel and even apply IRS-standard rates.
• Advanced Tip: Use the auto-tracking feature to record every trip you take for business, making it easier to keep track of tax-deductible mileage.

Use the Bank Feeds Feature for Automated Expense Entry

• Feature Overview: QuickBooks Online can automatically import and categorize your bank and credit card transactions, including expenses.
• How to Use:
  1. Connect your bank or credit card account to QuickBooks.
  2. Once connected, QuickBooks will automatically import your transactions.
  3. You can categorize these transactions, ensuring your expenses are entered with minimal manual effort.
• Advanced Tip: Review the Bank Feed regularly to ensure expenses are categorized correctly. You can even set up rules for recurring transactions to be automatically categorized.

Multi-Currency Expenses

• Feature Overview: QuickBooks Online allows businesses that deal with multiple currencies to track expenses in foreign currencies and automatically convert them to your home currency.
• How to Use:
  1. Enable Multi-currency by going to the Gear icon > Account and Settings > Advanced > Currency.
  2. Record expenses in a foreign currency by selecting the appropriate currency when creating an expense.
  3. QuickBooks will automatically handle exchange rate conversions based on the current rates.

Detailed Reporting on Expenses

• Feature Overview: QuickBooks Online offers robust reporting features that let you analyze your expenses in various ways (e.g., by category, vendor, project, or time period).
• How to Use:
  1. Go to Reports > Expense Reports.
  2. Customize reports by selecting different filters such as Account, Vendor, or Date Range.
  3. Use these insights to make informed decisions or for tax purposes.

By utilizing these advanced features, you can greatly improve your efficiency in managing and tracking expenses, ensuring that your financial records are accurate and up-to-date.