Hi, @youbeautynailbar. Let me help you set up an expense account for money spent.
In QuickBooks Online, we have specific detail types of expenses when setting up expense accounts. So when you're buying supplies to carry out a service, you can select the closest detail type for it, like Supplies.
Here's how to create an expense account:
- Select the Gear icon on the top right and then choose Chart of accounts.
- Click the New button.
- From the Account Type drop-down, select Expenses.
- From the Detail Type drop-down, select an expense detail type, e.g. Supplies and materials.
- Enter the account Name and other necessary details.
- Hit Save and Close.
Moreover, when you consider the purchased supplies as inventory items to your salon, you can create a cost of sales (COS) account type and then choose the closest match detail type so you can select it on the Expense account. It will help you calculate the net income from your gross margin.
You can check these steps:
- Go to the Sales menu and then select Products and services.
- Click New and then choose Inventory.
- Enter product Name and other necessary details.
- On the Expense account drop-down, click + Add new or select a COS account.
- Hit Save and Close.
Otherwise, you may create cheque expenses if the supplies are for regular purchases and then use the account created in the Category details section instead of choosing an item on the Item details.
All in all, what's important is to look for an account type first and then select the closest match detail type for it.
For more details about setting up and choosing the right category of your accounts, you can reference these articles:
Let me know if you have additional questions about choosing accounts to categorise your expenses and sales. I'm always ready to help. Have a prosperous weekend.
