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How to Add Home Office Expenses to QuickBooks
Published 09/03/2011 | 
I do this as when it comes to tax time the IRS want a P & L that includes traditional expenses and in another section of the tax form, you can deduct your office prorated expenses. This basically gives me a P & L that shows net profit from the business and then a net profit after “expenses other” have been removed. Health insurance, doctors bills, prescriptions etc. are also expensed each month as other expenses.
In this way I have all the figures needed to know how my business is doing and what my home office and other non-business expenses amount t to. From the IRS point of view everything expensed is clearly identified and accounted for. Is this an acceptable way of doing the bookkeeping for a home run business?
Home Office
- Rent
- Utilities
Medical
- Health insurance
I don’t think you can write-off doctor’s bills and prescriptions on your Schedule C, only medical insurance. You should check that with the IRS or a CPA before adding it to your business expenses.
Also, I wouldn’t have your home office expenses hitting your business checking account unless you’re actually writing a check to yourself each month. Instead, I’d create a credit card account called “Owed to Owner” and enter the expenses through Banking > Enter Credit Card Charges. Then either pay yourself back, using the credit card account as the expense account, or transfer the credit card balance to owner’s equity at year-end.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, Inc. and has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.
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