HOW TO SET UP
EXPENSE CATEGORIES
IN QUICKBOOKS: A
STEP-BY-STEP GUIDE
Overview of Expense Categories
Purpose of Expense Categories
Expense categories in QuickBooks are used to
classify and track different types of expenses
incurred by a business. They provide a systematic
way to organize and analyze expenses, making it
easier to manage and monitor financial transactions.
Tracking Expenses with Categories
Expense categories are assigned to each transaction
in QuickBooks to categorize and record the nature of
the expense. This allows businesses to generate
accurate financial reports, such as income
statements and cash flow statements, based on
different expense categories. By tracking expenses
with categories, businesses can gain insights into
their spending patterns, identify areas of
overspending or cost-saving opportunities, and make
informed financial decisions.
01
02
03
04
05
06
07
Creating and Managing
Expense Categories
Adding Expense Categories
To add a new expense category in QuickBooks, follow
these steps:
1. Go to the Expenses menu and select Chart of
Accounts.
2. Click on the New button to create a new account.
3. Choose the Account Type and Detail Type that
best fits your expense category.
4. Enter the necessary information, such as the
account name and description.
5. Click on Save and Close to add the new expense
category to your Chart of Accounts
Related Post - What You Need to Know About
QuickBooks Enhanced Payroll vs. Assisted Payroll
Expense Category Best Practices
Use consistent naming conventions for expense categories. This makes it easier to
track and analyze expenses across different reports and periods.
Regularly review and update expense categories to ensure they accurately reflect
your business expenses. This helps maintain the relevance and accuracy of your
financial records.
Consider creating subcategories within larger expense categories to further organize
your expenses. This can provide more detailed insights into your spending habits.
Regularly reconcile your expense categories with your bank and credit card
statements to ensure accuracy and identify any discrepancies.
Read More - QuickBooks Enhanced Vs Assisted Payroll
THANK
YOU
+1-844-248-9739
info@qbookassist.com
www.qbookassist.com
1018 West End St, Terrell, TX
75160, USA