In terms of accounting, the expense is any sum of money that is spent in order to create goods, purchase raw materials, hire employees and so on. Basically, organizations undertake expenses in order to create revenue and boost profits. Home Office expenses are recorded for each accounting period and can be recorded on accrual or cash basis. If you don’t know how to work with these expenses in QB then continue reading to find “how to enter home office expenses in QuickBooks.”
In accrual basis, expenses are only recorded and reported at the time the expense occurs. On the other hand, in cash basis, expenses are only recorded when cash is paid against them. Large organizations prefer accrual basis as it provides a more accurate and detailed view of a company’s finances during a particular financial year.
You may want to read: How to change from Accrual Basis to Cash basis in Quickbooks?
Home office expenses have been dichotomized into two major categories:
- Operating Expenses: These are the cost incurred due to main operations of a company. For example, purchasing and selling goods, producing final products and so on. The cost of goods sold is included in operating expenses.
- Non-Operating Expenses: These are the cost incurred due to nonoperational activities. These include, but aren’t limited to, interest on the loan, sale of assets and so on.
Steps on how to enter Home Office expenses into QuickBooks:
- Go to the create menu(+)
- Under Vendors, select Bills
- Enter mailing address, Expense Date, Vendor name and type of account through which the payment is to be made
- If paying by check, enter the check no. Else, proceed to the next step
- Enter product/ service/ item for which the expense in being incurred
- Enter any credits. Users can also select previous unpaid/ paid bills for merging the two together.
- Click on Save and Close. You can also print out the bill by clicking on the print check option.
Make sure to apply for any deposits and payments on these bills at the time you create them. Also, we recommend that you look at the reports that can be created using expenses in QuickBooks. It will behoove you to create reports for analyzing your accounting data. Expense reports can help you in strategically curtail costs, thus maximizing your profit.
Types of Expense Reports in QuickBooks:
- Accounts Payable Report: Accounts payable are recorded transactions for which the company owes money to creditors. With QuickBooks, users can generate a report summarizing all the accounts payable created for a particular financial year. Users can also filter out A/P according to date created, payment status and so on.
- Expenses by Vendor: Check expenses incurred on each vendor. You can either create a summary report or a detailed report.
- A/P Detail: Check all unpaid Accounts Payable without searching or sorting.
- Unpaid Bills: Check unpaid bills along with their due dates.
Hence, with QuickBooks, users can not only enter, record and organize expenses but also analyze them with customizable report filters. Also, reporting has become much more robust with QuickBooks 2017. Users can now view filters applied on a particular report for recreating or modifying it. In addition to this, users can find industry-specific reports in QuickBooks.
Still in Doubt…!
Request a Call Back
Talk to our Quickbooks Proadvisor and resolve your issue over a phone call.
- What happens to the value of the stock when you make an item inactive within Quickbooks pro-2017?
- How to import customer list within Quickbooks pro and enterprise?
- Which one is the best version of QuickBooks?