By Amanda Karen | CrunchSum
There are multiple ways you can enter, track, and record payments for purchases made by your business in QuickBooks. The four methods that will be discussed in detail include using Write Checks, Enter Credit Card Charges, Petty Cash Register, or Enter Bills. The form of payment you use when making purchases dictates how the transaction should be input into QuickBooks.
Write Checks & Check Register
Let’s say, for example, you purchased pens and printer paper using your company debit card. Because this represents an expense that you paid now and not something that you expect to pay in the future, this should be recorded through Write Checks or your Check Register.
Enter Credit Card Charges
If you used your company credit card to purchase the pens and printer paper, this expense should be input through Enter Credit Card Charges.
You also have the option of bypassing Enter Credit Card Charges and entering the expense in the appropriate account register for the credit card.
Enter Cash Payments
If you purchased pens and printer paper with cash, you can input this expense in your Petty Cash Register.
Record purchases that you expect to pay at a future date through Enter Bills. Any expense that you input through Enter Bills will be tracked in your accounts payable account.
How to Pay Bills
This is very important. Any bills that have been input through the Enter Bills window must be paid through Pay Bills (following the QuickBooks diagram below can be helpful). This ensures that the bill payment is applied to the correct bill and that your accounts payable balance is reduced accordingly.
It is important to understand why and when you would use each method. Are you using the correct method to record and track your business expenses?
Questions or comments? Leave a note below or send an email to firstname.lastname@example.org.
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