Project Accounting Series: Recording Expenses in QuickBooks Online

In my current role as a Project Accountant, there are four tools that I use almost every day:

• Intuit QuickBooks Online
• Google Sheets
• Bank Mandiri Internet Banking
• Google Drive

These tools help me manage financial transactions, organize supporting documents, and maintain accounting records efficiently.

Among them, Intuit QuickBooks Online is the main accounting software I use to record financial transactions and prepare accounting reports.

Whenever I need to enter a new transaction, I first sign in to QuickBooks Online. After logging in, the dashboard appears as shown in Figure 1 above.

From this dashboard, I can access various features, including expense recording, invoicing, banking transactions, financial reports, and other accounting functions that support daily project operations.

In this article, I will share a simple step-by-step guide on how to record expenses in Intuit QuickBooks Online based on my daily experience using the software.

Understanding Common Transactions

In an international non-profit organization, financial transactions generally fall into two main categories:

• Cash Inflow (money received)
• Cash Outflow (money paid out)

Cash inflow transactions may include grants, donations, or funding received from donors.

Cash outflow transactions are usually more frequent and may include:

• Employee salary payments
• Vendor payments
• Project expenses
• Staff reimbursements
• Operational expenses

Among these, reimbursements and salary payments are some of the most common cash outflow transactions. Once recorded, these transactions are typically recognized as expenses in the accounting records.

How to Record an Expense

To record an expense in Intuit QuickBooks Online, click the "+" (Create New) button located in the upper-right corner of the screen.

A menu will appear, as shown in Figure 2 above.

Under the Vendors section, select Expense.

This will open the Expense Entry form where you can enter details such as:

• Vendor name
• Payment account
• Payment date
• Payment method
• Expense category
• Amount
• Supporting notes or descriptions

After completing the required information, review the details carefully and save the transaction.

Recording expenses accurately helps ensure that project expenditures are properly tracked, financial reports remain reliable, and donor funds are managed transparently.

In the following sections, I will explain each field of the Expense form and how I usually complete it in my daily work.

To record an expense in Intuit QuickBooks Online, click the "+" (Create New) button located in the upper-right corner of the screen.

A menu will appear, as shown in Figure 2 above.

Under the Vendors section, select Expense.

The Expense Entry form will then open.

Information to Complete

There are several fields that need to be completed before saving the transaction.

Vendor / Payee

In the top-left field, enter the name of the vendor, supplier, or person responsible for the transaction.

Bank Account

In the next field, select the project bank account that has already been registered in QuickBooks.

Once the account is selected, the current bank balance will be displayed automatically, making it easier to monitor available project funds.

Payment Date and Location

Enter the payment date according to the transaction date.

Also select the project location where the expense occurred.

Account Details

In the Account Details section, complete the following information:

• Select the appropriate account code in the Account column.
• Write a brief explanation of the transaction in the Description column.
• Enter the amount paid in the Amount column using the applicable currency.
• Select the donor name in the Donor field.
• Select the project code in the Class field.

After all required information has been entered, review the transaction carefully.

Then click Save or Save and New.

The transaction will automatically be recorded as an expense in QuickBooks Online.

My Personal Workflow

Because I work in the Jakarta office, which serves as a sub-location of the project, I usually prefer to enter expenses into QuickBooks closer to the end of the month.

The reason is quite practical.

Project transactions are sometimes entered directly by the headquarters office into QuickBooks without first transferring funds to the sub-location account.

As a result, project expenses can continue to change throughout the month. New transactions may be added, while some entries may be adjusted or corrected.

Waiting until closer to month-end helps me ensure that the records are more complete and accurate before finalizing the expense entries.

Using Google Sheets for Daily Tracking

Before entering transactions into QuickBooks, I first record daily transactions in a Google Sheets file provided by the Finance Department.

This spreadsheet serves as a working document for monitoring project expenses throughout the month.

It is also used to record:

• Daily project expenses incurred at the local office
• Transactions entered directly by headquarters
• Expense adjustments and corrections
• Monthly project activity costs

One of the main purposes of this spreadsheet is to track the total project expenses in real time.

At the end of each month, I compare the total expenses recorded in Google Sheets with the total expenses recorded in QuickBooks Online.

The two totals should match.

This reconciliation process helps ensure that all project expenses have been properly recorded and that the financial information remains accurate and reliable.

Final Thoughts

Accurate expense recording is an important part of project accounting.

By combining QuickBooks Online for official accounting records and Google Sheets for daily monitoring, it becomes easier to track project spending, reconcile transactions, and maintain transparency in financial reporting.

Although the process may seem detailed at first, having a clear workflow helps keep financial records organized and makes month-end reporting much smoother.