Quickbooks Online - The Difference Between Entering Bills and Expenses

Quickbooks Online the difference between entering bills and expenses. You generally have 2 options when it comes to bills and expenses in Quickbooks Online. But which one do you choose? It can be incredibly confusing to know the difference between entering bills and expenses in Quickbooks Online. Especially if you are a new QBO user.
In this video, I walk through the simple way to know the difference between entering bills and expenses in Quickbooks Online each and every time so that you get it right and keep your books in good order.

[@QbuniversityOrg]

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[@ShaylaImagedisplay]

so once the bill is paid does it become an expense ?

[@user-ul6kk9uu1b]

I have always entered mine as expenses and not bills regardless of terms because I pay my bills as soon as I get them. I don’t schedule payments out. So that said, is how I’m doing it still correct?

[@QbuniversityOrg]

Yeah that’s fine if you’re paying them immediately

[@blitztomson1482]

I have a question. I uploaded a receipt for a business fuel expense that was paid with my personal debit card. It gave me the option to create an expense after filling in the receipt details. I made the payee the gas station that was paid, and I set the payment account to a DUE/FROM SHAREHOLDER LOAN(liability account). When I look at the journal entry it created, it looks like it credited the shareholder account and also debited the gas expense to fuel and gst seperately. Is this wrong or even just a bad way to do personal payments for business expenses?

[@QbuniversityOrg]

Answered this on the other video

[@richwahneEXPERTSmadeEasy]

Is a monthly payment due for my QBO, or car payment, an expense or a bill?

[@QbuniversityOrg]

If it is auto drafted it’s an expense, if you receive a bill to pay later it’s a bill

[@richwahneEXPERTSmadeEasy]

@@QbuniversityOrg Thank you! Should I change the "bills" to "expenses" on those that I set up as bills...or would it matter?

[@mayamoralboroto5289]

Hi. How to trace the lacking account of my expenses?

[@shellbell2065]

What the difference of writing an expense like described or just entering the debit in the bank register?

[@QbuniversityOrg]

You get the same result. No difference

[@shellbell2065]

Ok.good. That’s how I’ve been doing it and got worried for a second.

[@QbuniversityOrg]

Yep, you’re good

[@vanapallisatyasuryakumari6505]

sir...what is category here? is it expense or expense account type?

[@QbuniversityOrg]

Category is the expense or other account, not necessarily account type

[@user-my8fv8by4r]

On the Expense screen, I do not have the option to mark the Billable and put the customer. Is there an option to add the field to my screen?

[@QbuniversityOrg]

What version of QBO are you using?

[@user-my8fv8by4r]

@@QbuniversityOrg Quickbooks Essentials

[@QbuniversityOrg]

That’s why. That option is not available in Essentials. You would have to upgrade to Plus or Advanced