Recording an expense

You withdraw funds from an account when you need to record money you've taken out of the account, for example, a check you used to pay for goods or an ATM withdrawal for cash.

To record an expense:

  1. From the Home page, click Record an Expense, then select whether the expense was purchased on Paid from bank account or Charged on credit card.

  1. Choose the bank account or credit card account you used.

  2. Enter the payee in the Pay To field.

  1. (Optional) For expenses paid from bank accounts, choose the payment method: Check, Cash, Debit Card, or Online/EFT (electronic funds transfer). If check, enter the check number.

  2. To add inventory to items that you keep in stock, check the "This purchase contains items to add to inventory" checkbox.

This is the amount it cost you to purchase the item per unit.

  1. If you are purchasing services or other expenses, like shipping, with this purchase or payment, in the Bookkeeping Account field, choose the account to assign to the expenses you purchased.

The account you choose helps you categorize what you are spending your money on. Show me an example

For example, if you are the business owner and need some cash, you might choose Owner’s Equity: Draws to record the cash you took out of the business and enter how much you withdrew.  

Or, if you used your debit card to buy office supplies, choose your office supplies account and enter the total for the supplies.

Descriptions might be useful to remind you what you spent your money for.  

  1. Click Save.

The total of the transaction will be deducted from your bank account or added to your credit card account balance.

 

Related Topics

How do I add funds to my bank account?

How do I open the Activity List for an account?