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hello everyone thanks for tuning in im emily the home bookkeeper and on this channel i help business owners and fellow freelance bookkeepers navigate the ever-changing quickbooks online while also sharing insightful videos on all things business ownership and finance as always this is a sample company provided by quickbooks for educational purposes only this video is a subscriber request which i love getting jay powell asked in the comments section of a recent video about how to categorize and enter their vehicle lease payments in quickbooks online there are two common types of lease accounting options operating lease and a capital lease a capital lease or a finance lease is treated like an asset on a companys balance sheet while an operating lease is an expense that remains off the balance sheet think of a capital lease as more like owning a piece of property and think of an operating lease as more like renting a property so when it comes to a vehicle lease if you plan to get into