would you like to record business expenses as easily as you learned how to record deposits
well in this episode of quickbooks online crash course
you will learn how to record expenses and checks that you pay to vendors
if you have any questions about this topic you can leave them in the comments section below and i'll
do my best to help you and of course if you feel the video helped you i hope you will click like
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vendors are people that you pay for the services the company needs to operate
the government requires that you report the totals of each category of expense if you pay
them with a check you will use the checks window if you are paying online from your
bank account you will use the expense window and those are the only things you have to remember
for example let's imagine on january 5th of 2022 we paid ups for a business delivery
five hundred dollars with check number one zero zero one well since this is a check we must use
the checks window that's pretty clear but what will be the result here we have the numbers in the
trial balance that were the result from the prior video when we learned about deposits and income
so if we actually pay five hundred dollars that means that we have five hundred dollars
less in cash and cash in bank will decrease to six thousand five hundred dollars
but because we paid for a delivery delivery expense will show up on the trial balance
for the first time as five hundred dollars let's take a look at how to record it
in the top left we click new then we go over to the column of vendors and click
check now we put in our own check number and the vendor whom we're paying is uh i think it was ups
yes uh ups so ups and the day we were paying the check was or will be january 5th of 2022
now the reason we are paying the check
is delivery expense so we click directly under the word category to get the pull down
then click the arrow and scroll to up or down whatever you have to do to find delivery expense
boom and the amount of the delivery expense
500 at the moment we click save and close we can then click reports custom reports trial balance
and you can see delivery expense showed up for the first time as five hundred dollars
and cash in chase bank went down to six thousand five hundred dollars exactly as we predicted
let's do a second example let's imagine on january 6 of 2022 we paid ned's taxi a
hundred dollars for rides that were necessary for business we paid with the chase banks debit card
and they gave us this transaction number because the money came directly from the bank account
without writing a check we must use the expense window but let's think about what the results
will be after that transaction well if we pay a hundred dollars from the bank account
then we have a hundred dollars less cash and cash in bank goes down to sixty four hundred
however at the moment we lose a hundred dollars in the bank transportation expense shows up on the
trial balance for the first time as a hundred dollars let's take a look at how to record it
from the plus sign we click new and go over to the column of vendors and we click expense
now this is paying to ned's taxi for a transaction on january 6th of 2022 and the reason we're paying
ned's taxi is because of transportation expense and the amount we're paying is a hundred dollars
that's all you have to put if you'd like to put the transaction number i believe it was
whatever you can put a description if you like you can clarify the payment method by
adding your own but that's for another time right now when we save this recorded expense
that came from this bank account on this day click save and close
and now you can see the results in the trial balance are exactly as what we expected cash
went down to 6400 and transportation expense showed up for the first time as a hundred dollars
these are exactly the numbers we predicted but now let's take a look at the other reports
you know that these transactions were with vendors so you can click reports and in the custom
section of reports you can click transaction list by vendor and now you can see each transaction
sorted by vendor right now we only have one for each vendor but they will all be in a list with
with each one of them showing up here and as we learned in the prior video you can double click
go back to the window that you recorded the transaction change anything you want
and if you save the change the numbers in the reports will change immediately
you should also click reports profit and loss now notice this is the first time
that we are looking at our profit and loss with expenses in the expense section
notice it gives us the total of the expenses in the expense section the same way
that it gave us the total of our income in the income section and then of course
the difference is our net income our profit at the bottom of the profit and loss
don't forget the profit and loss is also a summary report we could double click any one
of these summarized numbers and go back to the original transaction and then after we
see the list of every transaction in that expense we can double click and we can fix
let's do the next one example three january seven paid fedex a thousand dollars for a business
uh uh delivery or a delivery that's related to business and this time we paid it to fedex with
a wire transfer from our bank account and here's the number obviously we must use the expense
window because this is not a check so before i do that i like to click reports trial balance to
see if the numbers are going to be what we predict right now we have 6400 in the bank
but if we pay a thousand it becomes five thousand four hundred and of course if we pay a thousand
more for delivery then delivery expense will increase from five hundred to fifteen hundred
and these will be the results in the trial balance after we record this transaction
so we click new expense january 7 the vendor whom we pay is fedex and the number for the transaction
whatever the category click directly under the word category to bring the
arrow click on the pull down arrow and this is delivery expense click in the amount field
and type a thousand now when we click save and close you can see
that the trial balance is exactly as we expected with cash at 5400 and delivery expense 1500. just
like we predicted and let's take a look at the effect on the other reports well if we click
reports transaction list by vendor fedex is now added to the list of transactions
and we can see every transaction for fedex in date order you can also click reports
and you can click profit and loss and you can see the total expenses has increased
because delivery expense has increased and you can double click the delivery expense account
to get each transaction that has been recorded in delivery expense and you can see which vendor gave
us the delivery on which date and you can scroll to the right to see the money amount and so on
if you wish to change it double click anywhere on the line and you will go back to the original
window that you recorded the transaction and just like you saw in the prior video you can change
anything you want and then all the numbers on all the reports will change
immediately you