According to the U.S. Bureau of Labor Statistics, 45% of new businesses fail within the first five years. One of the most common reasons? Ineffective financial strategies and lack of capital. But where does this issue really stem from? Our CPAs have found that an incomplete view of your spending is often the silent killer of business growth.
That’s where direct expense reporting in QuickBooks comes in. It gives you real time insights into your expenses to ensure that no dollar goes unaccounted for.
Whether you’re running a small business or managing complex finances across multiple teams, mastering direct expense reporting in QuickBooks Online can be a game changer. Not sure how to implement it? Our CPAs will walk you through the steps to help you keep your business on track for success.
5 Steps to Streamlining Expense Management with QuickBooks
Follow these steps to keep your financial data organized and gain better insights into spending patterns.
Step 1: Configure QuickBooks for Receipt Capture and Management
Before managing expenses, configure your QuickBooks account for seamless receipt submissions.
- Access the Banking Menu: Log in to QuickBooks Online (QBO), navigate to the Banking menu, and select the Receipts tab.
- Set Up Receipt Email: Use the auto-generated email (e.g., receipts@quickbooks.com) provided by QBO to submit receipts.
Step 2: Categorize and Organize Expenses
Automating expense categorization saves time and ensures consistency across transactions.
- Automate Categorization: Create rules within the Banking tab to auto-categorize recurring expenses.
Step 3: Register Email Addresses for Receipt Submission
Registering email addresses ensures only authorized personnel can submit financial records, protecting against fraud and errors.
- Register Team Emails: Add the email addresses of team members authorized to submit receipts.
- Set Up Forwarding: Team members can forward receipts to a designated representative (e.g., the accounts payable clerk), who then sends them to the QBO system using a registered email.
Step 4: Instruct Team Members on Submitting Receipts
Standardizing the submission process ensures accurate expense tracking and compliance.
- Email Submission: Team members should send receipt images or PDFs to the designated representative’s email.
- Forwarding Receipts: The designated representative forwards receipts to the QBO-generated email, ensuring they are sent from a registered address.
Step 5: Review and Approve Expenses
Consistently reviewing and approving expenses ensures accurate records and minimizes discrepancies.
- Monitor Receipts: Regularly check the Receipts tab under the Banking menu to review uploads.
- Match Transactions: Link unmatched receipts manually to the corresponding transactions when necessary.
Why Accurate Expense Reporting is Key to Growth
Failing to categorize expenses correctly or overlooking unmatched transactions can distort your financial data and create a false sense of security. From a growth perspective, this is risky. Real-time insights into your spending not only help identify cost optimization opportunities but also enable informed decision-making.
Accurate records go beyond decision-making—they save money by preventing penalties. On the compliance side, well-maintained records ensure you meet tax regulations and avoid unnecessary complications.
At Fusion, our CPAs specialize in optimizing QuickBooks setups to drive growth and ensure compliance. Contact us today.
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