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Whether you handle delivery trucks for your particular business or you are the boss and you send employees on company-related tasks, gas expenses are something you cannot avoid and have to pay up. In other cases, you need to bill a customer for the fuel or gas expenses that your business has incurred. QuickBooks offers some options for adding the expense to the accounting software.
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What is the Purpose of keeping a Mileage Log?
A mileage log is needed to record the gas expenses. In the absence of a Mileage Log, it will not be possible to prove that the driving was for business purposes or personal requirements. As a result, you will not be able to claim this deduction.
How to Record Gas Expenses in QuickBooks?
Here is how you record Gas Expenses in QuickBooks:
1. Add a Bill for Expenses
Step 1: Launch QuickBooks. Now press the Vendors option on the menu bar and then choose Enter Bills.
Step 2: Press the Vendor option in the drop-down list and then choose the name of the gas station or the particular company from where you bought the gasoline. In case, you have not entered the gas station in the vendor list, press Add New. Now add all the vendor details and then press Add. Now after you have added the new vendor or gas station, press the Company in the drop-don list of the vendor.
Step 3: Press the Date field and choose the date when the gasoline was purchased. Choose the gasoline from the particular pop-up calendar. You can also let the current date as it is in the related field, in case you are adding the bill on the day when the gasoline was purchased.
Step 4: Add the particular amount of gasoline that was purchased. You need to enter that amount in the Amount Due field.
Step 5: Add the receipt number or any other Identifiable Tracking Number for the gasoline that has been purchased in the field Ref No.
Step 6: Press the Expense tab and then select the Account field and press it. Choose Gasoline, Fuel Purchases, or any other related expenses account for the particular purchase from the given drop-down list.
Step 7: Press Save and save the new bill and register the purchased gasoline in your QuickBooks system.
Step 8: Press Vendors that are available on the menu bar. Now choose Pay Bills. Press Show all Bills in the given Pay Bills window and then go down and choose the bill for the purchased gasoline that you have added before.
Step 9: Press the Payment Account from the given drop-down list and choose the account from where you wish to deduct the money for the gasoline purchase.
Step 10: Press the Payment Method that is on the drop-down list and choose Check, even though you have not paid via check. Allocate Check No option. When the pop-up window comes up, add the check number if you paid via Cash, Check, ATM, or Credit Card in case you have paid for the purchase of gas via a different process.
Step 11: Select Pay Selected Bills to register the payment for the purchase of gasoline.
2. Compensate Gas Expenses
Step 1: Press Vendors and then choose Enter Bills. Choose the gas station or the name of the company from the drop-down list for Vendors.
Step 2: Press the Item field in order to open a drop-down list. Choose Fuel Purchases, gasoline, or any other related item name in the list for the purchase of gas. Press the check box in the particular Billable column to pass via the cost of the purchased gas to the customer.
Step 3: Press the Customer Job: Name from the drop-down list and choose the customer to whom you wish to bill the expense for the purchase of gas.
Step 4: Add the date and the amount for which gas is purchased in the related fields and then press OK to record the specific expense.
Step 5: Prepare a new invoice for the customer which normally you should. Press the Add Costs/Time button and then choose the gas expense in the window for Entering Bills. Add the right value in the Markup Amount field in case you wish to charge the concerned customer more than the real gas expense amount.
Step 6: Choose the option Print selected time and costs as one item, in case you do not wish the customer to know the markup amount that is on the Invoice. Press OK to send the gas expense details along with the cost to the particular invoice.
Step 7: Enter other items to the invoice as required. Save and Print the particular invoice which you generally would.
Recording gas expenses in QuickBooks is an important task. It helps businesses to know whether the money spent on gas or fuel is for an official or personal requirement. It also makes a difference in the net revenue earned in a year.
Hence, a business owner cannot miss out on recording gas expenses correctly in QuickBooks. In this article, we have pointed out all the information and steps needed to record gas Expenses in QuickBooks. All you need to do is perform the steps in the prescribed manner.
Still, if you fail to record gas expenses, you can connect with our Dancing Numbers team. They will help you to solve this issue instantly.
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+1-800-596-0806 or chat with experts.
Frequently Asked Questions
How to Record Expenses in QuickBooks?
In order to record expenses in QuickBooks, you need to:
Step 1: Navigate to Expenses in the navigation toolbar and press on Expenses.
Step 2: Press the drop-down arrow in the New Transaction button and choose Expense.
Step 3: Add the fields that is on top of the screen with information like Payment Date, Payee, and other Tags that you wish to mention.
Step 4: In the Category details section, choose the right category from the given drop-down list and add a Description along with an Amount.
What is the Definition of Fuel or Gas Expense in QuickBooks?
Fuel Expense or gas expense in QuickBooks states all expenses, variable costs, liabilities, losses, charges, and claims concerning to the acquisition, handling, storage, transportation, inventory, balancing, and delivery of fuel for all the facilities.
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