how do I post an expense I paid in cash?

Let me help you record an expense paid in cash in QuickBooks Online (QBO), pbm7077.

The first step is to create a cash expense account on your Chart of Accounts. We can use Bank as the Account Type and Cash on hand for the Detail Type to track this expense.

Here's how to add a new account in QuickBooks Online (QBO):

1. In the left pane, click Accounting.
2. Then Chart of Accounts. 
3. Click the New button.
4. Fill in the necessary information. 
5. Hit Save and Close

Here are some resources for more information about managing the Chart of Accounts in QBO: 

• Learn about detail types in the chart of accounts 

• Create a new account in your chart of accounts in QuickBooks Online 

If you already have an account to associate with it, then we can proceed to enter the cash expense in QuickBooks.

Here's how:

1. Click New (+) and select Expense.
2. Enter your cash expense amount and fill in the desired information in the field. 
3. Select Save and close or Save and new.

You can also edit the expense transactions in case you need to make changes. Follow the steps provided in this article: Edit or delete expenses in QuickBooks Online.

I've also added our page about reports and accounting that I'm sure you'll find helpful. It contains related articles related to the accounting process and reports. You can run a Transaction List by Date report and customize it to show the payments.

Of course, you're always welcome to visit us again if you need more help recording expenses or anything about QuickBooks. It will be my pleasure. Stay safe and have a great day ahead!

Hi,  pbm7077.

Hope you’re doing great. I wanted to see how everything is going about posting an expense paid in cash? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

Dear Admin:

This is not really helpful at all.  What account would the payer use?  Let's say the cash was withdrawn for three payments to the same person for different jobs.  So, one withdrawal has to be matched to 3 payments.  Do you use undeposited funds?  Do you use the Checking account and reconcile the three amounts to one withdrawal?

Thanks for joining the thread, Neural Bookkeeping.

We use the Undeposited Funds account as a special temporary account to hold payments received from invoices before you deposit them into the bank. It's not an actual bank account which is why there's no option to reconcile it in QBO. Let me share these articles with you for more details:

• What’s the Undeposited Funds Account?
• How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online

Then, we can use the checking or business account when paying your bills. Here's an article you can refer to for more details about tracking bills and recording payments. Once done, go to the Banking page to match the bank transactions to the three-bill payments. You can check out this article for the steps and details on how to review downloaded bank transactions and put them in the correct accounts: Categorize and match online bank transactions in QuickBooks Online.

Once everything is good, you can now reconcile your account without delay. It ensures all records you have in QBO matched your bank and credit card statements.

I'd also like to give you these articles for additional guidance and reference about using the Undeposited Funds account in QBO:

• Learn About the Chart of Accounts in QuickBooks
• Record And Make Bank Deposits in QuickBooks Online

Please know that you can always reply or reach out to us again if you have other questions. We'll make sure that everything is sorted out.