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Hi everyone.
Its my first post here so maybe I write in wrong place but I give it a try.
I recently joined to QBO and am starting learnig how choose category for expenses etc.
Here question.
What category I should choose or create for Hand Sanatizer for my business ?
If I am here its worth to ask , What category use for hangers and havy duty store clothes rail?
I have Clothing store.
Thank You for all answers.
Solved! Go to Solution.
Thank You for Reply.
I will look to it in chart so maybe I find proper type for it . Thank you.
Hiya Renata2 :waving_hand:. Yes, that's correct assets should not show on the P&L, An easy way to look at: When you buy an asset, your business isn't losing money ( expense) it's moving the value to somewhere else. So you're saying I no longer have 1k in my bank but I own 1k laptop that can be sold to get it back.
Income and expenses - show on P&L
Assets, Liabilities, and Equity on the Balance sheet
& all of the above will show on a trial balance. :D
Hi Renata2,
Thanks for joining us here on the Community :waving_hand:
How you categorise these is entirely dependant on how detailed you'd like to see the costs of your expenses split on your reporting.
For instance, you could create separate expense-type accounts for the hand sanitizer and hangers, or you could group these together under a general account such as business supplies.
The Chart of Accounts are entirely customisable meaning you can create as many or as few as you require. To create a new account, simply select Accounting > Chart of Accounts > New. If you're unsure of the specific account and detail type you should be using, we'd recommend speaking to your accountant for help setting these up.
Get back to us below if you have any Q's!
Thank You for Reply.
I will look to it in chart so maybe I find proper type for it . Thank you.
Hi i have another question.
I found out that Tangible assets can be used for Equipment that I purchased like Scale, Hanger Rail, Laptop.
Here question. Why I don't see this expense in profit loss and balance report with other expenses?
Its under Total Tangible assets is that correct?
Hiya Renata2 :waving_hand:. Yes, that's correct assets should not show on the P&L, An easy way to look at: When you buy an asset, your business isn't losing money ( expense) it's moving the value to somewhere else. So you're saying I no longer have 1k in my bank but I own 1k laptop that can be sold to get it back.
Income and expenses - show on P&L
Assets, Liabilities, and Equity on the Balance sheet
& all of the above will show on a trial balance. :D
Thank You I understand now .
Thank You so much for explanation it really help me a lot.
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