Episode 9 – Polymath Video Tutorial Series: Changes to QuickBooks Online – Expenses

expenses

Cheon Fong Liew

In this episode of the Polymath Video Tutorial Series: Changes to QuickBooks Online we cover how to use QuickBooks Online to enter and track expenses.  We discuss the difference between an expense and a check, and how to enter both.

 

 

Make sure to check out all the other great videos in the Polymath QuickBooks Tutorial Series:

Transcript:

Welcome, viewers, to this Polymath Bookkeeping instructional video. I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping services. If you’re following along with the series, you are now very familiar with all of the ways that money comes into your business. Today, we will begin looking at how money flows out, starting with how to enter an expense. If you’re just joining us for the first time, make sure to check out the other videos in this series.

[expand title=”Continue reading…”]Expenses refer to all of the ways that you spend money. Whether you’re using a credit card, debit card, writing a check, or sending a wire transfer, you will need to enter the transaction into your QuickBooks for accurate records. This is the window where you can create an expense. An ATM withdrawal may also qualify as an expense, but it gets complicated to track where all of the cash was spent. For today, we’re going to focus on non-cash transactions. Check with the Polymath Blog to find out why it’s best to avoid spending cash on business expenses when you can.

To get to the Create Expense screen, click on the Create menu at the top of your QuickBooks online. The Create menu is the button that looks like a plus sign. This is the dialog where you will enter credit card, debit card, electronic transfers, and cash expenses. Basically, any time money leaves your business where you didn’t write or print a physical check. Fill in the information, including the payee, the account that the money came out of, the date, the payment method, the account for what type of expense it was, and the amount. You can also include a description and a memo if you think that you might need more details about the transaction in the future. Click Save, and that’s it. Your expense is now recorded in your books.

Creating a check is very similar to entering an expense. You can access the Create Check window the same way as the Create Expense window, only you’ll want to click on Check instead of Expense from the Create menu. There are just three small differences that are very important to point out when creating a check. The first difference is that you want to make sure that you enter a correct check number for your records when you’re putting a check into your system. The second difference is that you can use QuickBooks to print your checks.

Finally, when entering expenses, most of the time it will be after the fact. When you’re adding transactions that were downloaded from your online banking, or when you’re going through your bank statements or your receipts. But with checks, it’s best to put those into QuickBooks at the time that you write the check rather than waiting for it to clear your bank. You can actually use QuickBooks to create the transaction at the time of the transaction. If you plan to print the check, you can either click the box that says Print Later to print a batch of multiple checks at one time, or you can click the link at the bottom of the screen that says Print Check. Stay tuned for future videos on how to print multiple checks from within QuickBooks online.

That’s it. Now you know how to enter expenses and checks into your QuickBooks account. Stay tuned for our next two videos that will cover entering and paying bills. I’m Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services. Thanks for watching.

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