Yes, there is a difference between using Cheque Expense and regular Expense when recording transactions, Rosie, particularly regarding how your accounting system categorizes these payments.
In QuickBooks Online, both Cheque and Expense record a transaction as an expense and a payment at the same time. However, QBO processes them differently in the accounting records. Please take note of the following:
- If you need to print a check, record an expense as a Check instead of an Expense.
- If you paid something via credit card, you can use Expense.
When you make a payment via EFT, you can use Check or Expense. In this case, you should enter EFT in the Cheque No. field.
In summary, a cheque transaction includes specific details, such as the cheque number. It is associated with a physical check that can be tracked within a set account. In contrast, an expense transaction does not include cheque number details and was done using other payment methods, such as cash, electronic funds transfers (EFT), or credit cards.
In terms of financial reports, Cheque expenses and Expense transactions are the same, as both will appear in the report under each account.
Feel free to read this article to learn more about this topic: Learn the difference between bills, checks, and expenses in QuickBooks Online.
Here are some resources that you can browse to help stay on top of your payables and expenses:
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