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Janicezdogtraining
March 14, 2024
Question

Categorizing expenses

  • March 14, 2024
  • 1 reply
  • 0 views

We use QB Self Employed which is linked to our business credit card.

 

When we use the bank business credit card for an expense it shows up properly as an expense, which we categorize.

 

However, we noticed that when we pay the bank business credit card bill (we do this almost daily as we accrue expenses), that payment to the credit card also shows up as an expense, so it seems as if our expenses are much higher than they are.

 

Is there a way to turn off or disconnect the payment to the credit card to cover the expenses?

1 reply

E
Erika_K
March 14, 2024

Welcome to the Community space, Janice. I'll share some information about categorizing your expenses. 

 

In QuickBooks Self-Employed (QBSE), turning off payment for your credit card bill isn't available since credit card bills are considered liabilities. Therefore, the payments made into it will automatically become expenses. However, to keep your books organized, we can categorize them instead. 

 

If connected to online banking, we can classify the payment from your bank account to your credit card as a Transfer. In this way, the payment that appears on your credit card statement, which comes from your bank, can be categorized as Personal.

 

Here's how: 

 

  1. Go to the Transactions menu.
  2. Find a transaction on the list.
  3. Choose Personal for personal. I
  4. Review the category in the Category column. QuickBooks tries to categorize transactions for you. 
  5. If you need to change the category, select the category link. Choose a general type, and choose a more detailed category.
  6. Once done, click Save.

 

However, if not, we can directly categorize the credit card payment as Personal. Also, I highly recommend reaching out to your accountant for additional assistance. This way, we can ensure your transactions are accurately classified.  

 

I'll add this article for more info: Categorize transactions in QuickBooks Self-Employed. 

 

For future reference, you can refer to these articles to learn how to manage your transactions in QBSE: 

 

 

You can hit the Reply button if you have more queries about classifying your expenses in QBDT. We're one post away. 

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