Thanks for your question about managing bills and journal entries for accrued expenses in QuickBooks Online, CTimmer. Properly reflecting expenses in the correct accounting period is essential for accurate accrual accounting. Let me clarify how this process works for your scenario.
Typically, you don’t need a separate journal entry. When you create a bill dated for October, QuickBooks Online automatically records the expense in October based on the bill’s transaction date, not the payment date. This aligns with accrual accounting principles, where income and expenses are recognized when invoices are sent or bills are received, rather than when payments are made.
An adjusting journal entry is only necessary if you forget to enter the bill in October and instead record or pay it in November. In such cases, the expense wouldn’t be reflected in October, requiring a manual adjustment.
Thank you for bringing up this thoughtful question about accrual accounting in QuickBooks Online. If you'd like more explanation or have any other questions, We're here and happy to help!
