Expense categories

Hello there, vasvaomanovic.

I'd like to share some helpful information about expense categories in QuickBooks Self-Employed.

While we're not able to provide which expense category to use for a specific transaction, allow me to share a list of categories that you can choose from. 

For the first and third transaction, QuickBooks automatically categorize them as Other business expenses. 

You may want to refer to this article to learn more: Other business expenses.

On the note, for your second and fourth transaction, you can check out this article: Taxes and licenses.

Given all the information, I'd still recommend consulting an accountant to help and guide how to record these transactions. Your accountant can provide more expert advice in dealing with this concern.

Should you have follow-up questions about expense categories in QBSE, please don't hesitate to drop me a reply and I'll be sure to help.

So can you not add a category? I run a services business and have some product but mostly service. I have different types of supplies for different aspects of the biz. I would like to have my own (at least) sub categories so I can read and organize my reports.....

Thanks

Jen

@vasvaomanovic 

QBSE is so limited, QBO or desktop would be a better choice

1. the price you pay for prints is not COGS, it is an expense, job expense. COGS when you file taxes (Which by the way QBSE will not handle inventory or cogs) revolves around inventory cost when sold. Paying for printing is not using your inventory.

2. subscriptions, in QBSE I would use legal and professional services expense. app subscriptions, QBSE subscription, etc etc

Paying the lump sum annual amount for a subscription is still the same expense as if you paid monthly. And technically it should post to an asset account called pre-paid xxxxx and each month you move the monthly amount out of that account and into an expense account - something QBSE can not do either

QBSE does not allow for any new accounts (categories) to be created
QBSE does not have sales receipts, only invoices
QBSE does not have the class function
QBSE does not do recurring transactions
QBSE does not keep a customer or job listing
QBSE does not have a balance sheet so you can not enter the cost or the depreciation for a car/equipment
QBSE does not do inventory or cost of goods sold
QBSE can not do payroll
QBSE does not do any associated IRS forms, like home office deductions or depreciation
QBSE will not accept a banking file formatted as .qbo (a standard intuit type of file)

QBSE does not do sales tax either (not schedule C related but critical to a business)

Can anyone direct me to a full list of the expense categories that comes with quickbooks self-employed? I cannot seem to find this list anywhere

I've just got the information you need, stoc100.

You can find the list of expense categories in this article: Schedule C and expense categories in QuickBooks Self-Employed. When it comes to categorizing the transactions, here are the steps:

1. Go to the Transactions menu on the left panel.
2. Find a transaction on the list and select Business if the transaction was for business, or Personal for personal. If the transaction was both, choose Split.
3. Review the category in the Category column. QuickBooks tries to categorize transactions for you. If you need to change the category, click on the category link. Select a general type, and choose a more detailed category.
4. When you're done, hit Save.

Here's a link for reference: Categorize transactions in QuickBooks Self-Employed. You can also find other guides in our general help topics page. 

Please let me know if you need anything else. I'd be glad to help you out again. Take care!

I specifically need to find where I would categorize my direct expense. I am looking for examples. ie: you buy an item that is consumed in your products (wood at a store and you're a handyman, oil from a store and you make soaps etc) Which expense subcategory would these go into. All anyone says is "if its an expense for your business that's called cost of goods other than office supplies like first aid and coffee." What kind of answer is that?? Is first aid and coffee an office expense or other than?