Expense Claim Management in QuickBooks Online

Proper expense claim management is essential as an essential aspect of managing a business. it ensures that your employees are reimbursed accurately for business-related expenses while maintaining transparent and auditable records. QuickBooks Online offers robust features for expense claim management, allowing businesses to streamline the reimbursement process and enhance financial efficiency. 

In this article, we will explore the key features of expense claim management in QuickBooks Online as well as the steps on how to review submitted expense claims. 

Key Features of Expense Claim Management in QuickBooks

Expense Capture and Tracking: QuickBooks Online allows your employees to easily capture and track expenses using the mobile app or web platform. They can snap pictures of their expense receipts, upload them directly to the system, and enter expense details manually. Each expense is recorded as an individual transaction, making it easy to categorize and reconcile expenses later.

Expense Categories and Customization: QuickBooks provides pre-defined expense categories, such as travel, meals, office supplies, etc., for organizing expenses. Additionally, businesses can customize these categories to align with their specific needs and industry requirements. Customization allows for more accurate tracking and reporting of expenses.

Approval Workflows: With customizable approval workflows, you can set up multi-level or department-specific approval processes for expense claims. Managers can review and approve or reject expenses based on company policies, ensuring proper control and authorization over reimbursements.

Currency Support: For businesses operating internationally, QuickBooks Online offers multi-currency support for expense claims. Employees can submit expenses in foreign currencies, and the system will automatically convert the amounts to the company’s base currency for reimbursement.

Bank Feeds: QuickBooks integrates with bank feeds, allowing businesses to reconcile expenses against bank transactions. This feature provides additional verification and accuracy in expense tracking, ensuring that all expenses are accounted for. Explore the banking features of QuickBooks Online.

Project Tracking: For businesses engaged in project-based work, QuickBooks Online allows the tracking of expenses related to specific projects or clients. This feature simplifies project cost accounting and allows for accurate billing to clients. Learn more about project profitability tracking in QuickBooks Online.

Expense Reports: Employees can create expense reports summarizing their out-of-pocket expenses over a specific period. These reports act as consolidated records, providing a clear overview of multiple expenses for review and approval.

Reimbursement Process: Once expense claims are approved, QuickBooks facilitates the reimbursement process with easy payment options. Reimbursements can be made through checks, direct bank deposits, or other preferred payment methods, eliminating the need for manual processing and improving the speed of reimbursements.

How to Manage Employee Expense Claims in QuickBooks

To view expense claims submitted by your employees in QuickBooks Online, click on the Expenses tab and then select the Expense claims dropdown. The Expense claims screen shows a list of all expense claims submitted within the platform, which are categorized into two tabs: For review and Reviewed. The For review tab includes the transactions awaiting your review and approval. 

Expense claims management screen in QuickBooks Online

To review a transaction, click on the Review button under the Action column, and QuickBoks will take you to a screen where you can review and edit the details, such as the document type, bank/credit card account, category, and amount. 

Reviewing an uploaded expense receipt in QuickBooks Online

Once you’ve reviewed the expense claim, select Save and next, then Create expense. 

Throughout the expense claim management process, QuickBooks Online keeps track of all approved and rejected claims, maintaining a clear and organized record of employee expenses. This makes it easier for you to analyze spending patterns, track budgets, and make informed financial decisions for your business.

In addition to managing individual expense claims, QuickBooks Online also allows you to generate various reports related to expense claims. You can access reports such as Expense by Vendor Summary, Unbilled Expenses, and Expense Transactions Detail to gain insights into your business’s overall spending and expense trends.

Wrap Up

QuickBooks Online provides robust expense claim management tools that help businesses streamline the reimbursement process, ensure compliance with expense policies, and maintain accurate financial records.