QuickBooks expense reimbursements via the Write Check method have always had one fatal flaw when it comes to how third party apps integrate with this functionality. The fact is, in virtually all of the QuickBooks-compatible expense reporting packages, it’s a “one and done” process. Once you send over a reimbursement check to QuickBooks, most packages won’t let you update, revise, or edit that check, if you discover some additional reimbursements that you’d like to add.

The result? You end up printing out two reimbursement checks to the employee (or worse, 3 or 4), as you receive and approve additional expenses that you weren’t expecting. Handling multiple checks is inconvenient for you, it’s not eco-friendly, and it’s a mess for the employee as well.

Expense Reimbursements via Splits – Cost Allocation is Crucial

There is a better way. To see the light at the end of the tunnel, start with the fact that checks are divided into split lines (“SPL” lines for you old timers) and imagine that you have an expense reimbursement check written to one of your employees.

First you’ll notice the Payee, the amount, and memo fields. But look closer, and you’ll notice that your reimbursement is really divided into one or more line items that “explain” the cost allocation in a more granular manner than the overall check.

To illustrate the purpose of “splits” for cost allocation, imagine that you have an employee that spent $50.00 on a Meals & Entertainment expense, and $20.00 on an Office Supplies expense:

You wouldn’t want to simply write a check for $70.00 without filling out two separate splits therein, because you would inevitably mischaracterize the available tax deduction — you’d either categorize the whole thing as Meals & Entertainment (likely characterizing the $70.00 as 50% tax deductible), or you’d categorize the whole thing as Office Supplies (characterizing the $70.00 as 100% tax deductible). Either way, you’ve mis-characterized the components of the expense, and therefore created an error at tax time.

Have we convinced you that your reimbursement checks surely need to be broken out into split lines, for cost allocation purposes? I hope so, but if not, leave a comment and ask a question.

Appending QuickBooks Expense Reimbursements to Existing Unprinted Checks

If you buy into our position that cost allocation via splits is crucial, then you are halfway to becoming a fan of our “Append Reimbursements to Existing Unprinted Checks” feature (we know, it’s a mouthful). See, if you already agree that splits are the only reasonable and correct way to handle an expense reimbursement check that is in response to multiple expenses filed by the recipient, then you are ready to ask the question “what do I do when I realize I overlooked one expense that I should have included?”

The answer, of course (presuming you haven’t yet printed the check):

…is to add an additional Split line with the initially forgotten expense, thereby raising the total of the reimbursement check, while correctly characterizing the cost allocation via the split.

That Sounds Obvious – Do All QuickBooks Compatible Expense Apps do This?

ProOnGo to the Rescue

The Video

People record credit card expenses from their company credit cards to QuickBooks in all sorts of crazy ways. If you’re using a company credit card (as opposed to a personal card), you need a way to record those credit card transactions in QuickBooks. The correct way to record company-issued credit card expenses is to use the credit card register, but not everyone does that.

Here at ProOnGo, we’re the experts in all things expense. If you’re trying to reimburse an employee for out of pocket expenses, check out this post. If you’re interested in recording expenses incurred on your company’s credit card, this post is for you.

Here are three common ways that people incorrectly record expenses in QuickBooks:

Vendor Bill to Credit Card Company

In this case, you would create a Vendor Bill, with the credit card company (AmEx, Visa, etc) as the Vendor. Then you would fill out all the line items with each individual expense and hope the end result matches your credit card statement. The thought behind this is okay – when you use a credit card, you’re spending the credit card company’s money. That’s why you get a bill from the credit card company rather than from the place you spent money (McDonald’s, Marriott, etc).

This method is, however, inefficient. If you’ve ever spent time keying in transactions, you know that errors are common. So, not only are you spending too much time entering in individual transactions, but if the vendor bill and credit card statement don’t match, you’re also spending time trying to find where on earth you made an error.

Vendor Bill for Each Transaction

This method involves a whole lot of vendor bills; you create a vendor bill for each transaction, with the vendor being the place you spent money (eg Pete’s Puggle Place). Writing a Vendor Bill for each transaction is even more inefficient than creating one big Bill. Say you’re on a business trip, and you spend money in 20 different places. This method would require you to create 20 different Vendor Bills, then Pay Bills for every single one of them. It’s easy for a transaction to get lost or forgotten in all the hullabaloo, and it’s virtually impossible to reconcile these expenses with your credit card statement. It’s a big mess.

Write a Check

People get used to Writing Checks for expenses. It’s a good way to record money coming out of your bank account, and can be used to record debit card transactions, and to reimburse employees for out of pocket expenses. For company credit card transactions, though, this shouldn’t be the case.

The most common thing people do is to write a check to the credit card company whenever they get their credit card statement. They fill out each individual expense as a line item on the check, and then compare that to the credit card statement. This is essentially the same thing as the first example, which was issuing one big vendor bill. So, writing a Check to the credit card company has the same pitfalls of issuing a Vendor Bill to to the credit card company; there’s too much data entry and it’s far too subject for error. Plus, it’s very time consuming.

So, what IS the right way to record your credit card transactions in QuickBooks?

The easiest, fastest, and most accurate way to record credit card transactions is to use online banking. By using online banking, all of your credit card transactions are posted to a specific credit card register, and it’s easy to reconcile these charges at the end of every month. Plus, you can categorize the expenses right in the register by client, class, item, etc. There are no errors, since it’s coming right from the bank, and the information is constantly updated.

Check out this blog post about setting up credit cards in QuickBooks, and then take a peek at ProOnGo’s credit card sync feature, which pushes all of the convenience of online banking in QuickBooks right to your smart phone.

Did you know: When you have online banking set up, you can use ProOnGo to sync with your credit card register, allowing you and your employees to categorize, edit, and add receipt images to your credit card transactions from any smart phone, any where, and at any time. Check out our Credit Card Sync.

We’ve taken a selection of questions from the Intuit Community Forums and answered them here! They all deal with QuickBooks sync issues; Sync Manager related or otherwise.

Q: How do I uninstall Sync Manager?

A: There is a way to delete the sync manager from your computer totally, but I do NOT recommend it, as it may affect your company file and your QuickBooks program itself.

Instead, just disable the sync manager. Open it from the task bar, and change the status of your company file to “Disable.”

Then nothing will sync. Really, though, do not delete the files associated with the program.

Q: Why can’t I sync my Home Depot credit card?

Store specific credit cards are a little tricky; many do not support direct sync with QuickBooks online banking. It wouldn’t hurt to call up the customer support line and tell them that there are 4.5M companies running QuickBooks, and that they should add compatibility with Intuit.  However, it might be an uphill battle.

Some cards (including Home Depot) offer support via IIF file. IIF files are pretty unpredictable, though: you’ve been warned. You can check out directions on how to do this from Home Depot’s website.

However, if QuickBooks integration is really a priority for you, the best bet is to choose a card that you know integrates with QuickBooks online banking, and stick to it.

Q: I got a scanner, and I have all the receipts scanned from my business expenses. Where do I put them in QuickBooks?

Bad news: There is no place in QuickBooks to store receipt images. You’ll have to keep them safe on your server or computer.

One downside of that is that things can go wrong with computers, and data can be lost easily. That’s one reason ProOnGo is great for handling your expenses; we save all of your receipt images on our secure servers, so you can access those images by simply running a report.

Did you know: You need Sync Manager to use ProOnGo with QuickBooks. Check out all the ways we sync to QuickBooks!

Your employees have incurred expenses for a specific job, and now that you’ve reimbursed them, you want to pass the cost on to the client. You can use the expense information from ProOnGo to instantly create an invoice, or add to an existing one. This is yet another way ProOnGo saves you time and improves your QuickBooks experience.

Here’s how to do it:

Step 1: Create the Expense In ProOnGo

The first step is to create the expense! Just go through the regular process of creating an expense in ProOnGo. First, use our receipt reader to record the expense information, or enter it manually. Then assign the correct Client to the expense and change the Type to “Billable.”

Once the expense is approved, you can send it to QuickBooks as you normally would, either as a Vendor Bill or via Write Check. In this case, we used Write Check.

Step 2: Reimburse That Expense

Open Write Check in QuickBooks and hover over the “Recent” button. You’ll see the expense!  You’ll notice that the expense is already assigned to the Client and marked as “Billable.”

Step 3: Create the Invoice in QuickBooks

Go to Clients, then Create an Invoice. If you’ve already created an invoice and want to add to it, no problem! Just select the correct Customer:Job.

Check the box next to “Billable Expense Charges” and your expense will be added to the invoice.

That’s it! No keying in information for you; you’re far too advanced for that. Creating invoices in QuickBooks is easy with ProOnGo!

Traveling abroad for work can be a great way to see the world, but it’s also a great way to mess up your expense reports. Currency conversion rates change, plus, who wants to do the extra math? ProOnGo has you covered – you can enter your expense in the foreign currency of your choice, then let ProOnGo convert it to USD for you. You can always set your home currency as something other than USD, too, so no matter where you are in the world, ProOnGo is useful to you.

Here’s how to set it up:

First, load ProOnGo to your phone. Then go to Options.

From Options, select “Currency Exchange Rates”

Enter your home currency – that is, the currency you’re submitting your expenses in – then enter the currency that you’d like converted.

Press back, then “Save.”

Then, when you go to create an expense, you will automatically be prompted to enter the expense in the foreign currency. ProOnGo calculates exchange rates and adjusts the amount accordingly.

That’s all there is to it! ProOnGo makes a great travel companion. You can get this feature by  subscribing to ProOnGo.

What should the equipment and materials we purchase to complete jobs for our customers be listed as:   Cost of Goods Sold or Expense?

That’s a great question which often confuses QuickBooks users (including this one!) Before we start on this blog, it should be noted that if you REALLY aren’t sure, it’s always wise to contact a CPA. Also, most engagements come with contracts that outline expense information, so you should probably check with that, too.

When thinking about Expense vs Cost of Goods Sold, first it’s important to understand that both of these are “expense” accounts. It’s also notable that there are tax regulations on what counts as an expense (again: contact a CPA). The easiest way to figure out whether or not an item should be listed as COGS (Cost of Goods Sold) or an Expense is to ask yourself three questions:

1. Is this item something that we have in our inventory and are selling/charging a client for?  If you answered yes, then this is most likely a COGS item.
2. Is this item something that you will use to create something else (ex: you buy hinges for kitchen cabinets that you are installing for a customer)? If you answered yes, then this is most likely a COGS item.
3. Is this item something you personally had to purchase because you were working on a specific job (ex: travel costs)? If you answered yes, then this is most likely an Expense item.

Most business that do not have inventories or are not involved in construction probably won’t use Cost of Goods Sold for anything. Expenses such as meals, entertainment expenses, computer software, gas and travel costs, and lodging costs are usually expenses. Most COGS items are purchased by companies, whereas most expense items are purchased by individual employees of a company. If you still aren’t sure, feel free to leave a brief explanation in the comments of this blog, and we’ll do our best to point you in the right direction.

Did you know: You can use ProOnGo to track your reimbursable expenses and company credit card expenses in QuickBooks! Check out all the ways we sync to QuickBooks.

How do reimburse an employee for mileage in QuickBooks?

Say your employee made a 100 mile round trip to attend a meeting. The meeting went great, but now you have to reimburse your employee for those 100 miles. Since miles aren’t a tangible item, you’re a little confused on how to reimburse them. Plus, mileage reimbursement follows tax regulations – the current reimbursement rate per mile is $0.555, but you should check with your accountant or irs.gov before you start issuing reimbursements.

You’re ready to reimburse an employee for mileage in QuickBooks. Here’s how to do it:

1. Create an expense account for mileage, if you haven’t done so already.
2. Create a Vendor Profile for the employee.
   NOTE: If your employee is already listed in the employee center, you’ll have to slightly alter the name of the Vendor slightly. So, if Jane Doe is your employee, the you would create a vendor named “Jane Doe.”.
3. Create a Vendor Bill from that vendor.
   a) assign the expense to the expense account you made in step 1, and enter the dollar amount (# of miles x 0.555)
4. Go to Pay Bill, and pay the bill.

Note that if your employee took more than one trip, you’ll have to enter an expense for each trip taken which can take up your valuable time. If you and your employee had been using ProOnGo to track mileage expenses, you could spend way less time keying in information and way more time doing important tasks (or looking at cats on the internet, whatever your thing is).

Did you know: You can use ProOnGo to track mileage, then send it to QuickBooks, right from your smart phone! Check out our mileage tracking for QuickBooks.

Since we’ve become so focused on our QuickBooks integration lately, we received a lot of expenses regarding employees and reimbursement. Since our on-staff QuickBooks Pro Advisor, Amber, is hard at work answering these QuickBooks questions, we figure we might as well post some of the common questions we receive.

How do I reimburse employees in QuickBooks? I use QuickBooks for payroll but I don’t want the reimbursement to affect their w2’s.

So, your employees have incurred expenses, and you’ve approved them already. You’re confident in your employees and they’re confident in you getting their reimbursements into their next paycheck. The only problem is, you don’t know how! Oh no!

Reimbursement via QuickBooks payroll is a little more complicated than reimbursement through the Write Checks or Vendor Bill methods, but it’s definitely doable.

Here’s how:

1. Open QuickBooks.
2. From the Lists drop down menu at the top of the screen, click “Payroll Items.”
3. Click “New Item.”
4. You’ll have to go through the EZ Setup to create a Miscellaneous Addition.
   1. The expense will be shown in the Payroll Items list; right click it, and select “Edit” to label the item correctly – QuickBooks will guide you through a series of steps to properly address the question of tax status, and other details.
   2. From the home screen, click Pay Employees.
   3. Click the Pay Employees button, and select the employee you’d like to pay.
   4. Click Open Paycheck Detail .
   5. Under the Other Payroll Items menu, find and select the item you just made.
   6. Click Save & Close, and continue with the normal payroll process.

And there you have it! Your employee’s expense reimbursement will be on their paycheck.

Did you know: ProOnGo supports payroll items! Check out how we sync to QuickBooks.

QuickBooks is an amazing resource for CPAs and Bookkeepers. One shudders to think about the Dark Ages before QuickBooks; a past filled with file cabinets, six inch thick ledger books …white out…remember white out?

When thinking about the innovation we have in the bookkeeping world today, it’s amazing that small businesses were able to keep track of their own numbers without these amazing tools.

Well, with the recent launch of the Intuit App Center, we’re about to pass another Rubicon where we think, “how on earth did we ever survive without this?”

This new innovation is Intuit App Center and it’s the equivalent of the Android Market for Android phones or the iTunes App Store for iPhones. Intuit App Center contains a bunch of applications made by third-party developers that enhance the functionality of QuickBooks by providing you tools that specifically meet your needs.

However, unlike the Android Market and the iTunes App Store, nothing is downloaded—all of these applications are considered to be SaaS (Software As  A Solution), providing the distinct advantage of being available from any computer.

Applications Tailored Just For Your Need

It’d be nearly impossible for Intuit to make an application for every business need for every segment in every industry; so instead, they’ve left the development of these applications to third-party companies.  Because of this, the applications found in Intuit App Center tend to address very specific needs of business, such as analytics, expense tracking and payroll.

And because the App Center isn’t very crowded at this point in time, nearly all of the developers can be reached for personal support.

How It Works

CPAs and Bookkeepers just have to browse to AppCenter.Intuit.com to browse all of the available applications that can plug-in to QuickBooks Desktop and QuickBooks Online. Once a user decides to try out the application, it is “installed” in their user account. QuickBooks users can than activate the applications using the Intuit Blue Button which appears in the upper right hand corner of all of the applications.

Here at ProOnGo, we utilize QuickBooks for our bookkeeping and have installed a few apps that help us get some day-to-day tasks completed. Here are some recommended applications to get you started:

• ProOnGo Expense – shameless self promotion, we do your expense tracking.
• Audit My Books – double-checks your books and business policies to make sure no fraudulent practices occur inside your company.
• Transaction Pro Importer – Helping you merge outside information into your QuickBooks account.

If you’ve ever tried to keep a receipt around for more than a couple months, you know that expense tracking can get kind of gross. Chances are you have more than one flimsy, fragile, off-colored receipt you have crammed in your wallet too. As if that isn’t bad enough, you have to key in all the information from there.  Then you submit it to your boss, hope there aren’t any errors, and wait for what seems like weeks upon weeks to get reimbursed. What a pain!

ProOnGo lets you approve or deny expenses from anywhere!

Not only can you file expenses from any phone at any time, but if you’re a manager you can also view and approve expenses from any phone at any time. Increase transparency, efficiency, and impress your employees by getting their reimbursements out promptly!

We have a really nifty receipt reader.

No one likes keying in information from who knows how many receipts. It’s boring, it’s time-consuming, and too much of it can give you carpal tunnel. ProOnGo features a really neat Receipt Reader which does all of that for you – simply snap a photo of your receipt, and chill out as all the information is populated for you. Then just categorize your expense, add a memo, and save.

We sync to QuickBooks in an AWESOME WAY.

A lot of people like to say that they sync with QuickBooks, but let me assure you: ProOnGo offers the most complete synchronization to QuickBooks Online and Pro of any expense reporting app. You can use your information from ProOnGo to create a Vendor Bill or Write a Check. Plus, all of your QuickBooks expense categories, items, vendors, and clients will be magically imported into ProOnGo.