Expense or Cheque

Hi there, 

QuickBooks Online allows you to record your expenses in multiple ways. Depending on your accounting needs, you may record an expense, a cheque, or even a bill. I know how important it is to choose the right type of transaction. I'll explain the differences below.

Here's a great article that you can reference that explains in detail the 3 types of transactions: QuickBooks Online: Bill vs. Expense vs. Cheque – What’s the Difference?

As explained in the article, "both Expense and Cheque transactions recognize the expense and record payment simultaneously. Although they are quite similar, a Cheque is like a special type of expense transaction. The only big difference between the two is that a Cheque transaction is linked to the cheque printing feature in QuickBooks Online. When you use the Cheque transaction to record an expense and select the “Print Later” checkbox, it will be added to the list of cheques you can print. Or, you can print the cheque as you are entering the transaction into QBO. If you do not need to print a cheque from QuickBooks Online to pay the vendor, you should use the Expense transaction (even if you actually write a check to make payment)."

Based on this information, you'll have to make the best choice for you and your business to decide which type of transaction to use. If you're still not sure, I recommend consulting with your accountant. If you're not connected to an accountant, you can find one in your area here: Find a ProAdvisor.

If you have any other questions, please reach out to our tech support team.

Have a great day.