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November 16, 2018
Solved

How to record fuel expenses in QuickBooks Online

  • November 16, 2018
  • 20 replies
  • 70 views

Hello

 

I am a new user just in the middle of setting everything up and was wondering what is the standard way of recording fuel used in our vehicles? No need for per mile etc as the vehicles are ours so just a case of recording the individual transaction and attaching copies of receipts.

 

Thanks in advance :)

 

Best answer by Elizabeth P

How you record fuel in QuickBooks Online depends on your product and your vehicle situation. Pick the scenario below that matches yours.

 

1. Company-owned vehicle — recording actual fuel costs

If your business owns the vehicle and you want to track the real cost of fuel (not a per-mile rate):

  1. Set up a primary auto expense account: Gear iconChart of accountsNew → Account Type: Expenses → Detail Type: Auto → name it (e.g. "Auto Expense") → Save and Close.
  2. Set up a Fuel sub-account the same way, checking Is sub-account and selecting your Auto Expense account as the parent.
  3. Record each purchase: + NewBill (or Expense), select your Fuel sub-account, and attach a photo of the receipt.
  4. Pay the bill via + NewPay bills.

This keeps fuel separate from other auto costs in your reports while still rolling up into total Auto Expense.

 

2. Using automatic mileage tracking instead

If you'd rather track mileage and let QuickBooks calculate the deduction, rather than logging fuel receipts directly:

  1. In the QuickBooks mobile app, go to MenuExpensesMileage → turn on Auto-tracking, and allow location access.
  2. Once a trip ends, mark it Business or Personal (swipe in the app, or select it on web under Expenses & BillsMileage).
  3. Export trip data anytime via Add trip ▼Download my trips.

 

Note: this is an alternative to recording fuel purchases directly — check with your accountant before using both methods for the same vehicle, to avoid double-counting costs.

Not sure which applies to you? Let us know whether your vehicle is owned by the business or by you personally, and whether you're on QuickBooks Online or Self-Employed — happy to point you to the exact steps.

 

20 replies

November 16, 2018

Hi Chris,

 

Thank you for your message & for joining our QuickBooks family!

 

I would be grateful if you can please advise to whether you have our QuickBooks Self Employed or small business product so that I can answer your query?

 

We look forward to hearing from you & Welcome to the QuickBooks Intuit Community page!

 

Kindest regards

June 18, 2023

 How would this work on QB Self-employed?  I don't want to record miles, as the car used is a hire lease and used only for the business.  So I record expenses as they happen, but QB registers all my car expenses as "disallowable".

Level 9
June 18, 2023

I'll share some insights on handling this expense in QuickBooks Self-Employed, kmarmolejo.

 

For this to be allowable, you need to select the travel category on the business side of the transaction, as the car vehicle category will input it into the disallowable part. For more information, you can read this article: Car mileage and travel expenses explained in QuickBooks Self-Employed.

 

On the other hand, I recommend consulting an accountant. They can provide expert guidance and advice that is tailored to your business needs.

 

Moreover, here are resources to learn more about simplified expenses and the distinction between allowable and disallowable expenses in QBSE:

 

 

You can count on me whenever you need assistance keeping track of your expenses.

Elizabeth P
Community Manager
July 28, 2026

How you record fuel in QuickBooks Online depends on your product and your vehicle situation. Pick the scenario below that matches yours.

 

1. Company-owned vehicle — recording actual fuel costs

If your business owns the vehicle and you want to track the real cost of fuel (not a per-mile rate):

  1. Set up a primary auto expense account: Gear iconChart of accountsNew → Account Type: Expenses → Detail Type: Auto → name it (e.g. "Auto Expense") → Save and Close.
  2. Set up a Fuel sub-account the same way, checking Is sub-account and selecting your Auto Expense account as the parent.
  3. Record each purchase: + NewBill (or Expense), select your Fuel sub-account, and attach a photo of the receipt.
  4. Pay the bill via + NewPay bills.

This keeps fuel separate from other auto costs in your reports while still rolling up into total Auto Expense.

 

2. Using automatic mileage tracking instead

If you'd rather track mileage and let QuickBooks calculate the deduction, rather than logging fuel receipts directly:

  1. In the QuickBooks mobile app, go to MenuExpensesMileage → turn on Auto-tracking, and allow location access.
  2. Once a trip ends, mark it Business or Personal (swipe in the app, or select it on web under Expenses & BillsMileage).
  3. Export trip data anytime via Add trip ▼Download my trips.

 

Note: this is an alternative to recording fuel purchases directly — check with your accountant before using both methods for the same vehicle, to avoid double-counting costs.

Not sure which applies to you? Let us know whether your vehicle is owned by the business or by you personally, and whether you're on QuickBooks Online or Self-Employed — happy to point you to the exact steps.