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thegeekbar
March 4, 2021
Question

Recording Accruals based Expenses

  • March 4, 2021
  • 1 reply
  • 0 views

Hi, 

 

Due to COVID I've agreed longer payment terms with suppliers but as I'm coming to the end of my accounting period I need to record these as current liabilities as a creditor. I can't find a way to record a creditor without recording it as an expense. As it's a Ltd company I have no option to do cash based accounting but when I try the system just asks me to upgrade, is this not possible on the simple start plan?

1 reply

JasroV
JasroV
March 4, 2021

I can imagine the situation you’re in right now, @thegeekbar.

 

I see how this pandemic we’re currently facing right now is affecting your business. Rest assured I'm here to help you get those creditor liabilities recorded in your QuickBooks Online (QBO) account

 

To enter those liabilities, you’ll need to record them as an expense. However, if you prefer not to, I recommend upgrading your account. I’ll show you how.

 

  1. Go to the Gear icon.
  2. Select Account and settings.
  3. Click the Billing & Subscription menu.
  4. In the QuickBooks Online section, select Upgrade your plan. 
  5. Choose a plan and select Choose plan.
  6. Then click Get started.

 

For more insight about this, you can refer to this article: Upgrade your QuickBooks Online subscription.

 

Once done upgrading your QBO account, you can now record those liabilities. If you don’t wish to upgrade your account, I recommend working with your accountant for guidance in recording these accrual expenses. This way, we can ensure your books are correct after tracking them.

 

when everything is all in place, you might want to check this link that can guide you in reconciling your accounts seamlessly: Reconcile an account in QuickBooks Online.

 

You can always tag me in your reply if you need further assistance in recording your liabilities. I’ll be around ready to help you. Have a good one and keep safe.

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