Expenses: An answer on google told me to enter Expenses in Bank Menu -> Enter Credit Card Charges?

GLEOffice · ‎March 25, 2019

So that's what I've been doing, inputting expenses from receipts [i.e Harbor Freight, Home Depot, etc] as job materials, supplies, tools & equipment, etc.

Is this the correct method?

If so, is the attached image correct too or should I be doing the charge & payment instead of just the charge?

Also, do all these have to be tied to the exact credit card they were charged on? [Does it make a different when it comes to filing taxes?] And do I need to be attaching images of every receipt to each of these?

Essentially want/need to know what EXACTLY must be done in order to report these on taxes as a Sole Proprietor.

Rustler · ‎March 25, 2019

@GLEOffice wrote:

So that's what I've been doing, inputting expenses from receipts [i.e Harbor Freight, Home Depot, etc] as job materials, supplies, tools & equipment, etc.

Is this the correct method?

Yes, if you paid it by CC

If so, is the attached image correct too or should I be doing the charge & payment instead of just the charge?

You enter a bank payment, only when you make the payment. use enter checks, select the bank account, set the check number correctly or to EFT if an electronic payment, enter the amount and select the CC account to be paid
Also, do all these have to be tied to the exact credit card they were charged on?

Yes

[Does it make a different when it comes to filing taxes?] And do I need to be attaching images of every receipt to each of these?

Entirely up to you, what is important is that you have the receipt in the event of an audit. I can my receipts and save the scan to my computer and google drive

Essentially want/need to know what EXACTLY must be done in order to report these on taxes as a Sole Proprietor.

View solution in original post

Rustler · ‎March 25, 2019

@GLEOffice wrote:

So that's what I've been doing, inputting expenses from receipts [i.e Harbor Freight, Home Depot, etc] as job materials, supplies, tools & equipment, etc.

Is this the correct method?

Yes, if you paid it by CC

If so, is the attached image correct too or should I be doing the charge & payment instead of just the charge?

You enter a bank payment, only when you make the payment. use enter checks, select the bank account, set the check number correctly or to EFT if an electronic payment, enter the amount and select the CC account to be paid
Also, do all these have to be tied to the exact credit card they were charged on?

Yes

[Does it make a different when it comes to filing taxes?] And do I need to be attaching images of every receipt to each of these?

Entirely up to you, what is important is that you have the receipt in the event of an audit. I can my receipts and save the scan to my computer and google drive

Essentially want/need to know what EXACTLY must be done in order to report these on taxes as a Sole Proprietor.

GLEOffice · ‎March 25, 2019

How do you input expenses paid for with cash?

GarlynGay · ‎March 25, 2019

Hello GLEOffice,

Allow me to jump into this thread. Here's how you can record expenses with cash as the payment method.

You'll want to make sure that you have a Petty Cash or Cash on Hand account (it's the same with Bank account detail). This is where you'll get the funds to pay the expenses.

Click on Banking.
Choose Write Checks.
Choose the Petty Cash or Cash on Hand in the Bank Account drop-down.
Enter the information.
Click on Save & Close.

Let us know if you have any questions. Thanks!

GLEOffice · ‎March 25, 2019

Thanks!

One more question.. for the credit card charges, I asked about payments so I just wanted to get a better grasp on that subject.

Is the credit card charge itself not the same as paying the charge? [I.E. A bank CC would automatically be a payment alongside the charge, eh? So do I just have to enter them back as charge & payment in that instance?] And when it comes to, say, Home Depot CC, do you just keep the charge and only enter your payments that you've paid to Home Depot itself? If so, is that done through the banking option that Rustler mentioned?

If that makes any sense.. lmao. I thought just putting the charge itself was enough but then I noticed that the ending balance acted as if payment was owed still, thus my confusion.

Alessandra_B · ‎March 25, 2019

Hi there, @GLEOffice.

Yes, the method given by @Rustler is correct. Let me provide more details about this.

The credit card charge is different from paying the charge. You'd have to enter the charge and the payment together in QuickBooks.

You can enter the charge and its payment by following through Rustler's answer.

Feel free to get back to me if you have other questions about your credit card charges.

GLEOffice · ‎March 25, 2019

Thanks!

I'm now entering the separate cards, at first I just had an overall account for CC charges. On the Tax-Line Mapping what should I be putting for each card? I.E. Home Depot, Ebay, Amazon, Business, Personal CC's?

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Expenses: An answer on google told me to enter Expenses in Bank Menu -> Enter Credit Card Charges?