Let us share some information about recording expenses to ensure accurate tracking of your business's spending in QuickBooks Online (QBO), aynush13.
Yes, we can record expenses in QBO without knowing the account balance however, this is not a best practice. Doing so could result in overdrawn accounts or inaccurate financial reports. It is important to have a clear, up-to-date view of your account balances before recording transactions. This ensures expenditures are covered and your financial records remain accurate and reliable.
Here's how to record an expense,
- Click the + New Plus icon and select Expense.
- In the Payee field, choose the supplier.
- In the Payment account field, choose the account you used to pay for the expense.
- Enter the date for the expense in the Payment date field.
- Select how you paid for the expense in the Payment method field.
- In the Category details section, enter the expense info. In the Category dropdown, select the expense account you use to track expense transactions. Then enter a description.
- Enter the Amount and Tax.
- If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in the Customer or Customer/Project field.
- Press Save and close.
To learn more about recording, editing, and deleting expenses, you can check out this article: Enter and manage expenses in QuickBooks Online.
If you need to enter an opening balance after you already created an account to track transactions, refer to this article for the steps and details: What to do if you didn't enter an opening balance in QuickBooks Online.
Moreover, visit this article to create an opening balance for banks, credit cards, and other types of accounts in the program: Enter and manage opening balances in QuickBooks Online.
The Community always has your back if you have any other questions about managing your expense transactions or any QuickBooks-related concerns. This thread is also open for handling your bank and financial entries, aynush13.
