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MYOB & Quickbooks – Using Miscellaneous Expense Account is Lazy and Poor Bookkeeping!
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Published on Tuesday, 12 February 2013 11:50
If you use a “Miscellaneous Expense” account, it really only indicates lazy bookkeeping. More professional and correct is to use the closest correct expense account or to add a new account to capture the expense type. Also use the memo to fully describe the expense. The more detail you put in now will save time later to sift through invoices and receipts trying to find out what the expense was, or dig out a copy for your accountant (or the taxman!).
Also don’t add lots of expenses – many can be grouped under one – eg Motor Vehicle Expenses – car repair, new tyres, new windscreen, servicing can all be there, not one account for each expense type!
And if you have good memos, you will see what the expense was for.
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