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Level 2

What's the difference between a cheque and an expense?

Which payment type should I select: Cheque or Expense, and what's the difference between each?

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Best answer 02-07-2019

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Level 7

What's the difference between a cheque and an expense?

Usually, Expense is used to enter a transaction that has been paid but not with a check (e.g., a debit card or credit card).  At the top left (just to the right of the vendor box) you can choose your checking account, credit card account, etc. as the source.  (In the desktop versions you would simply pay a bill or write a check and use, e.g., DC or EFT as the check number.)

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Level 7

What's the difference between a cheque and an expense?

Usually, Expense is used to enter a transaction that has been paid but not with a check (e.g., a debit card or credit card).  At the top left (just to the right of the vendor box) you can choose your checking account, credit card account, etc. as the source.  (In the desktop versions you would simply pay a bill or write a check and use, e.g., DC or EFT as the check number.)

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Level 15

What's the difference between a cheque and an expense?

@ free
I think you misunderstood

an expense is the reason you wrote the check OR charged something on a credit card, ie

I pay for fuel - fuel is the expense
I can pay using
cash and the expense account is fuel expense
write a check, and the expense account is fuel expense
use a credit card, and the expense account is fuel expense
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Level 10

What's the difference between a cheque and an expense?

You can do the same things with both, except print a cheque.

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Level 2

What's the difference between a cheque and an expense?

Thanks for your reply. So could you tell me why I would use one over the other please? Are cheques for paying bills and expenses for everything else?
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Level 10

What's the difference between a cheque and an expense?

cheques are for printing on special cheque paper and mailing. If you don't need to do that, it does not matter. If you handwrite cheques it will keep track of the numbers if you use the cheque form.  Or you can use an expense form for a handwritten cheque.  It posts to the books in the same way.
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Level 15

What's the difference between a cheque and an expense?

>>cheques are for printing on special cheque paper and mailing<<

I disagree.  The check you write in QB, is just a data entry form.  There is no requirement to print it, you select the print option on each and every check you enter.
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Level 2

What's the difference between a cheque and an expense?

Thanks everyone. I think I'll try to keep Cheques for bank accounts and expenses for Credit Cards although there seems very little difference. I was just wondering how each affected the accounting reports.
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Level 10

What's the difference between a cheque and an expense?

It does not seem like you read the answer.
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Level 2

What's the difference between a cheque and an expense?

Hi Malcolm. I did read and acknowledge your kind advice that they both post to the same account. So I guess it makes no difference and I'll carry on regardless. Seems a little odd to have both options though? Why not just have one (e.g. Expense) with the option to 'print as a cheque' or just have Cheque, and forget about Expense altogether. I just can't help feel that there must be a purpose to having both and I'd like to understand what that is, or perhaps that's a question for the QB developers?
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Level 1

What's the difference between a cheque and an expense?

If i use credit or debit card or a checking account for a payment i will go for cheque ortherwise i will go for expense(such as cash payment on spot)..Am i right??

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Moderator

What's the difference between a cheque and an expense?

Thank you for joining, @Rayhan10.

 

When paying something via credit card, you can use expense. If you're paying something via EFT, you can still use expense. However, if you need to print a cheque, you can record the expense as a Cheque, instead of an Expense.

 

In general, Cheque and Expenses are for services or items paid on-the-spot. For services or items to be paid later, you'll need to use Bill.

 

Keep me posted if you have other questions or clarifications. I'm here to help. Have a good one.

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Level 1

What's the difference between a cheque and an expense?

Hi everyone, actually I have found a difference between the two for reporting purposes. On the balance sheet, when I write a transaction as an expense 

for a liability, it shows up on the balance sheet using the cash form of reporting. If I use expense on that liability, it does not show up on the balance sheet for cash reporting. However, it does show up if I use accrual reporting. Why is this?

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Moderator

What's the difference between a cheque and an expense?

I appreciate you looping in the thread, @diana tyson.

 

When running the Balance Sheet, the reported data will differ depending on the accounting method used. 

 

If you create an expense transaction, it'll show on the cash form reporting because it's already paid. For accrual, it'll show as an outstanding liability since no payment has been made yet.

 

I'll include this helpful reference for more details about the difference between cash and accrual: Choose between cash and accrual accounting methods in reports.

 

Let me know if you have other questions or concerns. I'm here if you need help.