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Multiple expenses paid by one credit card payment. Do the expenses need to be the same date as payment?

 
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QuickBooks Team

Multiple expenses paid by one credit card payment. Do the expenses need to be the same date as payment?

Hi there, 

 

 

Glad to hear from you again. I'd be glad to steer you in the right direction with your expenses.

 

To answer your question, it depends entirely on you how your business type and how you'd like to record your expenses. With that being said, it's important you're familiar with the accounting method you're using.

 

There are two types of accounting methods in QuickBooks Online; Accrual Basis and Cash Basis. 

 

Accrual basis

  • In this accounting method, the time when you enter a transaction and the time when you actually pay or receive cash may be two separate events.
  • An accrual basis report shows income regardless of whether your customers have paid your invoices and expenses regardless of whether you have paid all your bills.

Cash basis

  • A bookkeeping method in which you regard income or expenses as occurring at the time you actually receive a payment or pay a bill.
  • A cash basis report only shows income if you have received cash and expenses if you have paid cash.

Knowing this info, you can now select which accounting method works best with your business. You can edit this by clicking the Gear icon > Account and Settings > Advanced Accounting method to Cash Save).

 

In case you need further assistance, feel free to contact our support team using this link here