Managing your small business’s finances effectively is key to maintaining a healthy bottom line. QuickBooks Online (QBO) simplifies the bookkeeping process by allowing you to record expenses and match them to transactions in your bank feed. Here is a Bookkeeping 101 tip with a step-by-step guide to mastering this essential task.
Step 1: Recording an Expense in QuickBooks Online
To ensure your books stay accurate, all expenses should be properly recorded. Follow these steps:
- Log in to QuickBooks Online: Access your account dashboard.
- Navigate to Record an Expense:
- Click on the + New button in the left-hand menu.
- Select Expense from the drop-down options.
- Enter Expense Details:
- Payee: Choose the vendor or person to whom the payment was made.
- Payment Account: Select the bank or credit card account used for the transaction.
- Payment Date: Record the date of the transaction.
- Category: Choose the appropriate expense category (e.g., Office Supplies, Utilities).
- Amount: Enter the total amount paid.
- Attach Receipts (Optional): Upload a digital copy of the receipt for documentation.
- Save and Close: Click Save and Close or Save and New to finalize the entry.
Step 2: Matching an Expense to Bank Feed Transactions
Matching expenses to your bank feed transactions ensures accuracy and prevents duplicate entries. Here’s how:
- Go to the Banking Section:
- In the left-hand menu, select Banking.
- Choose the appropriate bank or credit card account.
- Review Bank Transactions:
- Locate the transaction that matches the expense you recorded.
- Use filters to simplify your search if needed.
- Match the Transaction:
- QuickBooks will often suggest a match automatically.
- Verify the details (e.g., date, amount, and payee).
- Click Match to reconcile the transaction.
Best Practices for Bookkeeping Success
- Stay Consistent: Regularly update your expenses and bank feeds to avoid a backlog.
- Use Categories Wisely: Proper categorization ensures accurate financial reports and tax filings.
- Leverage Attachments: Uploading receipts adds an extra layer of documentation and simplifies audits.
Why This Matters
Recording and matching expenses in QBO streamlines your bookkeeping process, saves time, and provides an accurate picture of your business’s financial health. By following these steps, you’ll keep your books clean and ready for review at any time.
Final Thoughts
Bookkeeping doesn’t have to be complicated and we hope this Bookkeeping 101 tip helps you conquer your expenses. QuickBooks Online provides intuitive tools to help you manage your business’s expenses efficiently. Whether you’re a seasoned business owner or just starting out, mastering these basics will set you up for success.
Overwhelmed and need bookkeeping support? Contact us today to streamline your financial processes and focus on growing your business!
📞 Contact Us Today: Lakewood Bookkeeping & Support
📧 Email: lakewoodbookkeepingllc@gmail.com | ☎️ Phone: 904-990-7379