How to add a business expense using a receipt that also has personal expenses on it...

SpaceCodeHacker · ‎November 01, 2021

Hi,

Terrible, I know, but I have a receipt that has both business and personal expenses on it. I want to add the business expenses to my QuickBooks Online, but I'm not sure how... Do I only add the value of the business items without the tax? Or do I include what the tax would be for just those items?

Thank you!

ReymondO · ‎November 02, 2021

Thanks for getting back to us, @SpaceCodeHacker.

Yes, what you've mentioned is correct. You can take out the business expense amount from the receipt using your steps and record it into QuickBooks.

Here's how:

Click the + New icon and select Expense.
In the Payee field, select the vendor.
Choose the account you used to pay for the expense in the Payment account field.
In the Category details section, enter the expense info. In the Category dropdown, choose the expense account you use to track expense transactions.
Enter the Amount and Tax.
Fill out the rest of the field.
When you're done, click Save and close.

Since you're only recording the business expense, your account in QuickBooks and actual bank balance won't match.

I'd also recommend reaching out to your accountant for further advice to ensure everything is correct.

You can also check out the difference between bills, checks, and expenses. This way, it would be easy for you to enter and manage your expenses in QuickBooks.

Let me know if you have any other QuickBooks-related concerns. I'll be here to answer them for you.

View solution in original post

DebSheenD · ‎November 01, 2021

I'm here to help you add a business expense in QuickBooks Online (QBO), SpaceCodeHacker.

Adding expense categories is a process performed from within the chart of accounts. Here's how:

Go to the Accounting menu, then click Chart of Accounts.
In the upper-right section of your COA tap New.
Select Expenses for the Account Type.
For the Detail Type, choose Other Business Expense.
Fill in the Name field, then hit Save and Close.

I've also added this article that'll help you categorize transactions: Group your products and services into different categories.

Come back here anytime for additional questions or concerns about account detail types. Have a good one!

SpaceCodeHacker · ‎November 01, 2021

Hi Deb,

I'm comfortable with the process for adding expenses, but thanks for confirming! What I would like to know is this:

The total indicated on the receipt is $72.99. But there are two items listed: One item, which is a business expense with a cost of $58.26; and another item, which is a personal expense with a cost of $7.95. The total tax for both items is listed as $6.78.

I'm assuming that:

(1) I should calculate the proportional tax for the business expense and add that to its cost, which would make the total cost for the business expense $64.23; and

(2) When I enter the expense into QuickBooks, even though the receipt itself says $72.99, I should enter $64.23 as the amount of the business expense.

Yes?

Thanks!

Lauren

ReymondO · ‎November 02, 2021

Thanks for getting back to us, @SpaceCodeHacker.

Yes, what you've mentioned is correct. You can take out the business expense amount from the receipt using your steps and record it into QuickBooks.

Here's how:

Click the + New icon and select Expense.
In the Payee field, select the vendor.
Choose the account you used to pay for the expense in the Payment account field.
In the Category details section, enter the expense info. In the Category dropdown, choose the expense account you use to track expense transactions.
Enter the Amount and Tax.
Fill out the rest of the field.
When you're done, click Save and close.

Since you're only recording the business expense, your account in QuickBooks and actual bank balance won't match.

I'd also recommend reaching out to your accountant for further advice to ensure everything is correct.

You can also check out the difference between bills, checks, and expenses. This way, it would be easy for you to enter and manage your expenses in QuickBooks.

Let me know if you have any other QuickBooks-related concerns. I'll be here to answer them for you.

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