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November 16, 2018
Solved

How to record fuel expenses in QuickBooks Online

  • November 16, 2018
  • 20 replies
  • 64 views

Hello

 

I am a new user just in the middle of setting everything up and was wondering what is the standard way of recording fuel used in our vehicles? No need for per mile etc as the vehicles are ours so just a case of recording the individual transaction and attaching copies of receipts.

 

Thanks in advance :)

 

Best answer by Elizabeth P

How you record fuel in QuickBooks Online depends on your product and your vehicle situation. Pick the scenario below that matches yours.

 

1. Company-owned vehicle — recording actual fuel costs

If your business owns the vehicle and you want to track the real cost of fuel (not a per-mile rate):

  1. Set up a primary auto expense account: Gear iconChart of accountsNew → Account Type: Expenses → Detail Type: Auto → name it (e.g. "Auto Expense") → Save and Close.
  2. Set up a Fuel sub-account the same way, checking Is sub-account and selecting your Auto Expense account as the parent.
  3. Record each purchase: + NewBill (or Expense), select your Fuel sub-account, and attach a photo of the receipt.
  4. Pay the bill via + NewPay bills.

This keeps fuel separate from other auto costs in your reports while still rolling up into total Auto Expense.

 

2. Using automatic mileage tracking instead

If you'd rather track mileage and let QuickBooks calculate the deduction, rather than logging fuel receipts directly:

  1. In the QuickBooks mobile app, go to MenuExpensesMileage → turn on Auto-tracking, and allow location access.
  2. Once a trip ends, mark it Business or Personal (swipe in the app, or select it on web under Expenses & BillsMileage).
  3. Export trip data anytime via Add trip ▼Download my trips.

 

Note: this is an alternative to recording fuel purchases directly — check with your accountant before using both methods for the same vehicle, to avoid double-counting costs.

Not sure which applies to you? Let us know whether your vehicle is owned by the business or by you personally, and whether you're on QuickBooks Online or Self-Employed — happy to point you to the exact steps.

 

20 replies

November 16, 2018

Hi Chris,

 

Thank you for your message & for joining our QuickBooks family!

 

I would be grateful if you can please advise to whether you have our QuickBooks Self Employed or small business product so that I can answer your query?

 

We look forward to hearing from you & Welcome to the QuickBooks Intuit Community page!

 

Kindest regards

November 16, 2018

Hi

 

Apologies I did mean to include that, I am using Quickbooks Online

 

Thanks

AlcaeusF
Level 14
November 16, 2018

I'm happy to see you here in the Community, ChrisPembs.
 

I can help you record fuel expenses in QuickBooks Online.

 

You can set up a primary expense account for auto expense then add a sub-account for fuel. Once created, you can use the Bill and Pay Bills option to record the expense.

 

Please follow these steps to create the primary account:

 

1. Click the Gear icon.

2. Click Chart of Accounts.

3. Select New in the upper-right corner.

4. Below Account Type, choose Expenses.

5. Below Detail Type, select Auto.

6. Enter a name for the account (example: Auto expense).

7. Enter necessary information.

8. Click Save and Close.

 

For the fuel sub-account, follow these steps:

 

1. Click the Gear icon.

2. Click Chart of Accounts.

3. Select New in the upper-right corner.

4. Below Account Type, choose Expenses.

5. Below Detail Type, select Auto.

6. Enter a name for the account (example: Fuel).

7. Put a check mark beside Is sub-account and select the primary account.

8. Click Save and Close.

 

After creating the accounts, you can now enter the expenses in the system. You can follow the steps below on how to create the bills and pay them.

 

Here's how:

 

1. Click the Plus (+) icon.

2. Select Bill.

3. Enter necessary information.

4. Click Save and close.

5. Click the Plus (+) icon again, and click Pay Bills.

6. Search for the bill.

7. Click Save.

 

You can visit the article below for more information about entering and paying bills:

 

Enter and pay bills

 

Let me know if you need more help with recording the fuel expense. I'll be around for you.

Elizabeth P
Community Manager
July 28, 2026

How you record fuel in QuickBooks Online depends on your product and your vehicle situation. Pick the scenario below that matches yours.

 

1. Company-owned vehicle — recording actual fuel costs

If your business owns the vehicle and you want to track the real cost of fuel (not a per-mile rate):

  1. Set up a primary auto expense account: Gear iconChart of accountsNew → Account Type: Expenses → Detail Type: Auto → name it (e.g. "Auto Expense") → Save and Close.
  2. Set up a Fuel sub-account the same way, checking Is sub-account and selecting your Auto Expense account as the parent.
  3. Record each purchase: + NewBill (or Expense), select your Fuel sub-account, and attach a photo of the receipt.
  4. Pay the bill via + NewPay bills.

This keeps fuel separate from other auto costs in your reports while still rolling up into total Auto Expense.

 

2. Using automatic mileage tracking instead

If you'd rather track mileage and let QuickBooks calculate the deduction, rather than logging fuel receipts directly:

  1. In the QuickBooks mobile app, go to MenuExpensesMileage → turn on Auto-tracking, and allow location access.
  2. Once a trip ends, mark it Business or Personal (swipe in the app, or select it on web under Expenses & BillsMileage).
  3. Export trip data anytime via Add trip ▼Download my trips.

 

Note: this is an alternative to recording fuel purchases directly — check with your accountant before using both methods for the same vehicle, to avoid double-counting costs.

Not sure which applies to you? Let us know whether your vehicle is owned by the business or by you personally, and whether you're on QuickBooks Online or Self-Employed — happy to point you to the exact steps.