Recording "use of home as business" expenses either using simplified rule / flate rate or recording actual costs - how?

Good day, wingers.

The nature of your question about recording expenses for tax purposes requires an expert advice from an accounting professional. To make sure everything is accurate, I recommend working with your accountant or any knowledgeable financial specialist. 

You can also find an accountant by clicking on this link: Find an accountant.

Here's an article that you can review to learn more about managing expenses in QBO: Enter and manage expenses in QuickBooks Online

Feel free to visit the Community should you have other concerns. I'll be around to help. Have a great day ahead.

Thank you for getting back to us, @Anonymous.

Let me share some guidelines about entering your expenses made out of your personal bank account rather than your business account. 

Although what is done is not advisable, it does occasionally happen. Thus, you can enter the transaction in QuickBooks if you pay for a personal expense with a company account. After that, you can reimburse the business back.

Here’s how:

1. Go to the + New icon.
2. Select Journal entry.
3. Choose the expense account for the purchase on the first line.
4. In the Debits column, enter the purchase amount.
5. Choose Partner's equity or Owner's equity on the second line.
6. In the Credits column, enter the same purchase amount.
7. Select Save and close.

Once done, proceed with how you want to reimburse the money. You can do that by referring to the steps under Step 2: Decide how you want to reimburse the money in this article: Pay for business expenses with personal funds

Furthermore, if you’re referring to turning on Flat Rate Scheme (FRS) in your QuickBooks Online Simple Start, you’ll want to refer to this article and toggle down to Turn on FRS to see the steps: Flat Rate Scheme (FRS) in QuickBooks Online

Moreover, I still recommend you get in touch with your Tax Advisor. To know how you can enter the transactions properly for tax purposes.

In addition, here’s a comprehensive article you can check out regarding the Flat Rate Scheme in QuickBooks Online. 

Once done, learn to categorise and match your transactions to reconcile your account. This way, we can ensure that your account is balanced.

Feel free to get back if you have more questions about entering expenses and taxes. The Community always got your back. Stay safe!

Hi wingers, did you select the option for sole proprietor when setting up the QuickBooks Online account? This will unlock the Income Tax feature, with which we'll estimate your Income Tax based on the income and expense categories that you've assigned to your transactions. 

Hi - which alternative software did you choose? i am having the same frustrations with QuickBooks Simple Start.