Enter and manage expenses in QuickBooks Online (2024)

Learn how to record, edit, and delete expenses in QuickBooks Online.

In addition to tracking sales, QuickBooks Online makes it easy to record business expenses. Entering your income and expenses gives a more complete picture of your business and profit.

If you've already paid for a business expense, enter it as an expense. On the other hand, if you plan to pay for the expense in the future, enter it as a bill. These are specific transaction types that tell QuickBooks how to record everything.Here's how to enter and manage expenses in QuickBooks.

Or, learnthe difference between bills, checks and expenses.

Check out this quick video to learn about recording expenses:

Record an expense

Follow these steps if you already paid for a business expense and need to record it in QuickBooks:
Tip: If you have lots of expenses to record, you can also enter them directly to the account register.

Select +New. Then select Expense.
In the Payee field, select the vendor. Tip:If the transaction covers multiple petty cash expenses, leave this field empty.
In thePayment accountfield, select the account you used to pay for the expense.
In the Payment date field, enter the date for the expense.
In the Payment method field, select how you paid for the expense.
If you want detailed tracking, enter aRef no or Permit no. This is optional.
In the Tags field, enter the preferred label to categorize your money.
In the Category details section, enter the expense info. In theCategorydropdown, select the expense account you use to track expense transactions. Then enter a description.Tip:You can also enter specific products and services in the Item detailssection to itemize the expense.
Enter theAmount and Tax.
If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in theCustomer field. Learn more about billable expenses.
When you're done, selectSave and close.

You can also enter notes in theMemo field. These appear in the account register, on printed checks, and on reports.

Managing expenses

Edit an expense

Since you already paid for expenses you enter into QuickBooks, you can edit them anytime. However, if you decided to bill your customer for the expense, edits you make will impact the invoice you send them later on:

Review your expenses

Want to see the income and expenses for each customer?

Go to Reports (Take me there).
Run an Income by Customer Summary report.

Delete an expense

Go to Expenses and select Expenses (Take me there).
Find the expense you want to delete.
Select View/Edit ▼ dropdown in the Action column, then select Delete.
Select Yes to confirm that you want to delete the transaction.

Once you delete an expense, it disappears from reports, but you can still see a record of it in the Audit log.

As a seasoned expert in accounting and financial management software, I bring a wealth of experience to guide you through the intricacies of recording, editing, and managing expenses in QuickBooks Online. My expertise is not only theoretical but also practical, having worked extensively with businesses to streamline their financial processes.

Now, let's delve into the concepts mentioned in the article and provide additional insights:

Recording Expenses:
- To record a business expense in QuickBooks Online, navigate to the "+New" button and select "Expense."
- Specify the payee (vendor), payment account, payment date, and payment method.
- For detailed tracking, you can include a reference number or permit number.
- Categorize your expense using tags and select the appropriate expense account in the category dropdown.
- Provide additional details such as description, itemized products/services, amount, tax, and customer information if the expense is billable.
- Save and close the entry.
Managing Expenses:
- Editing Expenses:
  - Access the Expenses section and locate the expense you want to edit.
  - Click on View/Edit in the Action column to make necessary updates.
  - Save the changes.
  - Note: If the expense is billed to a customer, edits will impact the subsequent invoice.
- Reviewing Expenses:
  - To analyze income and expenses for each customer, go to Reports and run an Income by Customer Summary report.
- Deleting Expenses:
  - In the Expenses section, find the expense you wish to delete.
  - Click on View/Edit dropdown in the Action column and choose Delete.
  - Confirm the deletion.
  - Deleted expenses disappear from reports but remain visible in the Audit log.

This comprehensive approach to expense management in QuickBooks Online ensures a meticulous record of your financial transactions, providing a clearer picture of your business's financial health. If you have further questions or need additional guidance, feel free to ask.