Showing results for 
Search instead for 
Did you mean: 
Everything you need to know about banking in QuickBooks Online - Discover more
Level 3

Wages Paid - Expense or Transfer


When I pay our carer we go on to online banking and make a payment to their bank account.

In Quickbooks, should this be recorded as an Expense or a Transfer?



Level 3

Wages Paid - Expense or Transfer

Also, something else that has always confused me.  In terms of category of expense, should wages go down as Payment (Payroll Clearing) or Wage Expense?


I can see both sides here, but Payment just doesn't seem right, even though Wage Expense sounds more about actual expenses occurred that I may be reimbursing for.


Just trying to tidy things up to make sure I am categorising things correctly.




Jelayca V
QuickBooks Team

Wages Paid - Expense or Transfer

I can see you for your commitment to maintaining accurate financial records, @pezza72. Let’s ensure seamless recording of your transactions.


When paying the carer for services rendered, recording it as an expense is the appropriate approach. Expenses reflect costs incurred by the business for goods or services received. Therefore, I recommend following the steps provided below.


  1. Click the + New button and select Expense.
  2. Select the supplier in the Payee field.
  3. Choose the Payment account and enter the Payment date and Payment method.
  4.  Enter the preferred label to categorise your money in the Tags field.
  5. In the Category details section, select the expense account from the dropdown menu and provide a description. 
  6. Enter the Amount and VAT.
  7. If billable, check the Billable checkbox and enter the customer’s name. in the Customer field. 
  8. You can also add notes in the Memo field. These appear in the Account history and on reports.
  9. If using expense vouchers, select Print to have a paper copy of the voucher.
  10. Hit Save and close.


Regarding the categorization of the expense, I recommend seeking advice from your accountant, as they're best equipped to determine the correct category and provide accurate advice.

If you don't currently have an accountant, you can visit our Proadvisor website to find one. Our QuickBooks advisors can offer you technical and accounting support.


Check out this article for more information on how to manage expenses in QuickBooks Online (QBO): Enter and manage expenses in QuickBooks Online


For future use, you can refer to this material to have a better understanding of how to handle bills to be paid later and bills to be paid immediately using bills, cheques, or expenses in QuickBooks Online: Learn the difference between bills, cheques, and expenses in QuickBooks Online


Feel free to reach out to us anytime if you have further questions about expenses in QBO. The Community is here to help. 

Need to get in touch?

Contact us