Hi, money per week into separate savings accounts to cover my vat and tax due. they show as expense but surely it should be a transfer?

Your accountant is correct, lcgjoinery. Both Expense and Transfer transactions work similarly, involving money being deducted from your account and transferred to another account.

In QuickBooks Online (QBO), transfers refer to the action of moving funds between different accounts, such as transferring money from a checking account to a savings account. On the other hand, expense represent the costs incurred for the purchase of goods or services used in the day-to-day operations of the business.

When it comes to expenses and transfers, both are categorized as money-out transactions. This indicates that in terms of the impact on your financial statements or tax liabilities, there may not be a significant difference between the two when addressing your VAT and tax obligations.

Furthermore, I'm leaving this article to learn more about how to adjust your VAT liabilities in QBO: Make VAT adjustments in QBO.

If you have follow-up questions regarding your Tax obligations in QBO Don't hesitate to add a reply below. We're always available to assist you.

Hi @lcgjoinery-gmail 

If the money is staying inside the company (in a savings account), amend them all to Transfers.

Your accountant is saying it does not matter because they intend to amend at year end but, what if they miss one?

Contrary to the comment by @LouiseG , expenses & transfers are completely different.

Expenses involve money leaving the company (so affect the balance sheet) while Transfers are for internal movement (& do not).

Hope this helps.