Question

1. For what type of situation should you record a check in QBO?

2. When creating a bill in QBO, what liability account is increased?

Answer 1

1. In the following situations we should record a check in QBO:

1. Checks are recorded for situations in which the services and expenses are paid on the spot.
2. Check reports a transaction as an expense and payment simultaneously.
3. If a check needs to be printed then an expense is recorded as a check instead of an expense.
4. If a payment is made via EFT , then one should use check

Eg: If a company buys supplies at the office and immediately paid for these supplies then the transaction should be recorded using the check .