How to Set Up Itemized Expenses in QuickBooks
Setting Up Itemized Expenses
I have been using QuickBooks, an accounting software program, for many years and absolutely love how I can quicky see where I'm spending my money. QuickBooks automatically takes all of my inputted check register information and creates bar graphs and pie charts based on the itemized categories I've setup. Depending on how detailed I want to be, I can see up to the penny, where most of my money is going. This is a great tool since I am trying to set a budget and save money.
For QuickBooks newbies, it is an extensive program that may seem complicated at first. However, I am going to simplify setting up itemized expenses (see the image at the top for visual step-by-step instructions):
- From your 'Home' (Explore Workflow) menu, select 'Chart of Accounts' in the Company section, this is usually in the upper right hand corner
- Choose 'Account', 'New'
- Click the radio button labeled 'Expense', then click 'Continue'
- Choose an 'Account Name' such as meals or dining out, or whatever expense name you'd like to choose
- Optional: You can type in a description, this is really if others use your QuickBooks and need to know how to label an expense
- Optional: You can also select a tax-line, if you use a schedule C, this may help come tax time
5. Choose 'Save & Close' and you're finished
Once you've set up itemized expenses, when you enter a debit from your check register, you can choose your itemized expenses in the account section of your entry. The next time you view an expense/income report, you should see your hard work in the form of colorful graphics:
Colorful Pie Charts
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