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      How do I create an Expense?

      FreshBooks makes it easy to keep track of your spending with Expenses. This is helpful if you are required to document business-related purchases already made for your business and for tax deductions.

      You can create Expenses, as well as Recurring Expenses that can generate automatically on a frequent basis (perfect for subscription-related costs). You're also able to upload receipts, and mark an Expense up for rebilling to your Clients.


      Create an Expense

      There are three ways to create a new Expense: 

      • On the Dashboard, click on the Create New button, then select Expense
      • Go to the Expenses section (from the left menu) and click on the New Expense button
      • Go to the Expenses section (from the left menu) and at the top of the list, click on the + New Expense button (quick entry)

      From the first two ways above, you'll be taken to the New Expense page:

      New expense screen with fields to fill out.

      1. A category is required, click on Add category to select a Category or Subcategory (or create your own Custom Subcategory instead)
      2. To attach a receipt image to the expense, follow the steps here
      3. Next, the Date is automatically set to present day, click to change it to a different date instead
      4. If needed, click on Add Vendor and type in a new Vendor or choose from a pre-existing list of Vendors you've used before
      5.  If needed, click on Add description to give more details on the expense
      6. To add taxes, click on the Add Taxes link below the Subtotal
        1. Check off up to two boxes next to Taxes you want to add (or you can use the Add another Tax button to make a new Tax instead)
        2. Then click Apply Taxes
        3. If you need to override the tax amount with a different total, click inside the tax amount and update it
      7. Next to Grand Total, add in the full amount of the expense
      8. Under Expense Settings are a few more options:
        1. If you need to assign this expense to a client, and/or mark it up, click on Mark as billable and follow the remaining steps here
        2. To make the expense automatically generate copies on a frequent basis (Make Recurring), jump to the Recurring Expense section below
        3. Click on Currency to change to a different currency and click Done to save
        4. To associate this expense with client costs (Costs of Goods Sold/COGS), follow the rest of the steps here
      9. When you're done, click on the Save button to finish.

      Create a Quick Expense 

      Quick expense section with fields to fill out.

      If you’re looking to quickly create or edit an Expense, use these steps:

      1. From the Expenses section click on the + New Expense button above the list
        New Expense button above list of expenses.
      2. Click on Add Vendor and type in a new Vendor or choose from a pre-existing list of Vendors you've used before
      3. Click on Add category to select a Category or Subcategory (or create your own Custom Subcategory instead)
      4. Next, the Date is automatically set to present day, click to change it to a different date instead
      5. If needed, click on Assign to client/project to assign the expense to a Client or to a specific Client's Project
      6. To add Taxes, click on Tax Amount
        1. Check off up to two boxes next to Taxes you want to add (or you can use the Add another Tax button to make a new Tax instead)
        2. Then click Apply Taxes
        3. If you need to override the tax amount with a different total, click on the advanced expense settings and follow the remaining steps above
      7. Under Grand Total, add in the full amount of the expense
      8.  If needed, click on Add description to give more details on the expense
      9. To attach a receipt, click on the attach receipt link
      10. When you’re done, click on the checkmark button to save the Expense. If you’re looking for more settings like Mark as billable, Make Recurring, change the Currency, or Mark as COGS, click on advanced expense settings instead and follow the remaining steps above.

      Create a Recurring Expense

      If you have Expenses that are identical and repeat on a frequency, use the below steps to set up a Recurring Expense to take care of creating Expenses automatically:

      1. Go to the Expenses section
      2. Click on the New Expense button at the top of the screen (rather than above the list of Expenses)
      3. On the New Expense screen, under Expense Settings, click on Make Recurring
        New Recurring Expense button on an expense creation screen.
      4. Click on the Make Recurring button to confirm
      5. In the New Recurring Expense area, choose a date under Next Expense Date that you want the first Recurring Expense to generate on
      6. Next, in the How Often, choose either Weekly, Monthly, Yearly or Custom as the frequency
      7. In the How Many? field, choose between Infinite or 0 remaining and specify the number of expenses you want it to generate
      8. Add in the rest of your Expense details with the remaining steps above
      9. Click Save to finish.

      New and existing Recurring Expenses will appear in the Recurring Expenses sub-section next to All Expenses inside the Expenses section:
      Recurring expenses sub-tab.

      To stop a Recurring Expense, you can delete it with the below steps: 

      1. In the Recurring Expenses sub-section, check off the box next to the expense
      2. Click on the Bulk Actions button
      3. Click on Delete.


      FAQs

      Should I keep track of expenses that have been incurred due to COVID-19?

      Any expenses incurred as a direct result of COVID-19 are not a part of your day-to-day operations. These expenses are extraordinary and may be eligible for tax credits and payroll tax relief through government programs.

      To ensure these expenses can be easily referenced in the future, the Description field of any COVID-19 related expense should contain the keyword COVID at the beginning. Including the keyword COVID ensures these expenses appear in your search results and Reports.

      Expense with COVID in the description field.

      Afterwards, to find COVID-19 related expenses, you can either:



      How do I manage my Duplicate Expenses?

      Duplicate expenses occur when you have at least two or more expenses where the date and amount match. Your account will flag these duplicates with a banner above your list of Expenses as well as display a Potential duplicate link on any relevant expenses in the list.

      It’s important to review any potential duplicates regularly to ensure your financial reports stay accurate. You can do so with the below steps:

      1. Click on the Expenses section
      2. If you see a yellow banner notifying you of potential duplicate expenses, click on the Review all link

        Banner at top of list of expenses notifying of duplicate expenses.
      3. Or in the list of Expenses, click on the Potential Duplicate link

        Potential duplicate link inside an expense on the list of expenses.
      4. In the Potential Duplicates section, you can either:
        1. Check off boxes next to any Expenses that you want to keep, then click on Bulk Actions and select Mark as not Duplicate
        2. Or check off boxes next to any Expenses that you want to delete, then click on Bulk Actions and select Delete
      5. Once there are no more duplicates for that particular expense, click on the View all expenses link or the All Expenses link at the top to return to your list of Expenses.


      I received a credit, refund or reimbursement on an Expense. How do I record this? 

      Currently any Expenses recorded counts as money leaving your account (payments for your business). Note: If you are using the Accounting features including Bank Reconciliation, follow the steps outlined here.

      Otherwise, if you are not using the Accounting features, you can use the below steps for either a full or partial refund:

      1. Click on the Expense you want to modify
      2. Click on the Edit button
      3. If it's a partial refund, change the Grand Total to reflect the remaining balance paid
      4. If it's a full refund, change the Grand Total to $0
      5. Adjust the taxes if applicable
      6. Leave details in the Description about the refund (like the original total and amount refunded)
      7. Click Save to finish.

      Alternatively, you can delete the Expense entirely. We recommend checking with your accountant on which would be best for your business.



      How do I edit or delete a Vendor? 


      Vendors are populated from existing Expenses where that Vendor is listed. When a particular Vendor is no longer saved on any Expense, it will then disappear from the list of Vendors. To make changes to a Vendor, whether individually or in bulk, you can use these steps:

      1. Use the Search, or check off the boxes next to the Expenses you want to edit
      2. Click on the Bulk Actions button
      3. Select Change Vendor
      4. Type in a new Vendor, choose from the list, or leave it blank
      5. Click Save to finish. The old Vendor name will no longer appear on the Expense.


      How do I edit or delete taxes on my Expenses? 


      If you have several expenses where the taxes need to be added, edited or removed simultaneously, use the below steps:

      1. Use the Search, or check off the boxes next to the Expenses you want to edit
      2. Click on the Bulk Actions button
      3. Select Change Taxes
      4. Select the taxes you want to apply to all the selected Expenses, or unselect to remove all taxes
      5. Click Apply Taxes to finish.


      How do I identify the Source of an Expense?

      Source refers to how the Expense was created, which can be from any of the below methods:

      Expense entry with Imported from File as source.

      • By Owner - this will display your Name on expenses created by you in your account
      • From a Bank Connection - this will display the name of your Bank Account (or a Nickname if you provided one during Bank Connection)
      • From a File Import - this will display Imported from File next to any expense that was uploaded via CSV by you
      • From a Team Member - this will display the Team Member’s name that created the expense

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