How to Enter and Setting Up Pay Bills In QuickBooks Online?

You will have several vendors that will allow you to make purchases on credit. That is how you will get […]

You will have several vendors that will allow you to make purchases on credit. That is how you will get a bill with a due date for payment. QuickBooks Online can facilitate you in tracking the upcoming due dates. With the help of this, you will be able to make sure that bills are paid on time. Know how to Enter and Pay Bills in QuickBooks Online.

Save Time, Reduce Errors, and Improve Accuracy

Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Online. Utilize import, export, and delete services of Dancing Numbers software.

Not only this, it is also helpful in order to know the total amount of bills or accounts payable (A/P) that your company owes. You will have better control over your cash flow. Cash flow often becomes a problem for small businesses, and better control of your cash flow is a major benefit of a good bookkeeping system like QuickBooks Online.

Setting Up Pay Bills in QuickBooks Online

Learn about QuickBooks Online’s Online Bill Pay and How to Pay Bills.

By using QuickBooks Online to pay your bills online, you may complete transactions more quickly. This is the process.

To use Online Bill Pay in QuickBooks Online, you just follow these easy steps:

  • Log in to your account on QuickBooks Online.
  • Then you have to select + New and then you have to select Online Bill Payment.
  • Select Next after checking the boxes next to the bills you want to pay.
  • By choosing Edit details, you may review the payment information and make any necessary changes. Note: Paper checks are the only ones that will show the Memo field.
  • To schedule your payments you have to click Submit payment.

Remove Payments

If you made an error and haven’t yet sent the money, you can take it out of the queue:

  • Next to Edit details you have to click the small arrow icon.
  • Select Removing Payment and then click the X.
  • There will be a message. To cancel the payment, select Yes.
  • You must cancel the payments if you’ve already sent them in.

Manage Bills

To handle your bills, click the Unpaid Bills tab from the Pay Bills Online screen:

  • You have to view and choose the bills you need to pay.
  • Change the payment amounts.
  • Update process dates-but not before the following working day.
  • Then review and send payments.
  • Remove any Bill Pay bills you don’t wish to pay.
  • Make deposits or set up bank transfers for your vendors.

Process to Enter the Bills in QuickBooks Online

It is also important to set up your vendors as well as your product and services items. Once the billing setup is done, the information entailed in these components will be updated automatically. With this, you will be able to create a bill screen and required information will be populated automatically. It will make the bill management much easier.

1. Navigate to Enter into the Bills:

You need to click on the new button visible at the top of the left menu bar and then select Bill under Vendors section.

Navigate to Enter into the Bills
Navigate to QuickBooks Online bill payments.

2. Enter the Bill Information & Select Bills for Payment:

Enter the Bill Information & Select Bills
Select bills for payment in QuickBooks Online.

QuickBooks Online will also display a screen to input the bill information. The actual fields should be appearing for your company depending on your preferred choices when you set up your advanced settings. You can include these many details:

  • Vendor: You need to choose the vendor that sent you the bill or choose Add new to set up a new vendor. Once you have selected a vendor, the required fields for mailing address and terms will populate automatically.
  • Bill Date: You can enter the date of invoice from the bill. The due date gets determined by applying the payment terms to the invoice date.
  • Due Date: The due date can also be calculated automatically on the basis of the terms and bill date. However, it is recommended that verification of the calculated date matches any due date shown on the bill.
  • Bill no.: You can enter the bill or the preferred invoice number available from the vendor’s bill.
  • Description: Provide a description of the expense.
  • Amount: Enter the amount of the expense.
  • Tax: Next thing is to place a checkmark here and if you are required to collect sales tax when it is billed to the customer.
  • Product or Service Item: Purchased list of items that will be sold to customers and also must be assigned to an inventory item. Services and expenses that are billed to customers should be assigned to a service item. Select a product or service item or click on the add new to set up a new product or service item. Once you select the purchasable item, the fields for Description, Rate, Billable and Class then later the selected details will automatically populate.
  • Quantity: You need to enter the quantity of goods or hours of services purchased. After you have entered the quantity, the amount will calculate automatically as quantity times rate, and the sales amount will calculate as amount times markup percentage.

3. Verify & Review Bills:

After entering a bill, you also need to verify the bill details whether or not those are entered correctly by navigating to the Vendor center. You also need to hover over expenses in the left menu bar and then you should click on the Vendors tab. In the vendor center, you should scroll down to the vendor for which you entered a bill.

Option 1: Print Checks

If you want to print the required checks, all you need to do is to click on the drop-down box. It is visible next to the green Schedule payment online button and then you should select the Save and print. If you’ve printed checks in the past, then as a final step, you need to press the green button in order to save and print out.

Print checks in QuickBooks Online
Print checks in QuickBooks Online.

The Print Checks screen will show all checks that have been saved and are waiting to be printed: Verify the checking account in the drop-down box in the upper-left corner of the screen is the correct account. You can also place a checkmark next to the checks that you wish to print. You can also provide a starting check number and click on the green Preview and print button. Finally, you need to follow the on-screen instructions which will lead you further to preview and print your checks.

Option 2: Use QuickBooks Online Bill Pay

In order to pay your bills online, you just need to click on the green button of Schedule payments online. This button will be visible at the bottom of the Pay Bills screen discussed in step two.

The Schedule Payments screen will take you to the due bills that you have selected for payment. It will allow you to input a different deduction date, payment method, and delivery method for each bill. Finally, you need to click on the Vendor name for each bill in order to open a screen to input the necessary information to make an online payment. You can also choose the method you want to use to make the payment. After clicking in this section, you will have the following options:

  • Bank account (free)
  • Debit card (free)
  • Credit card (2.9%)

How to Enter Vendor Bills in QuickBooks Online?

  • Paying bills online is easy. Bill can be selected by clicking the Create Menu (the Plus + icon in the upper centre).
  • Below the Vendor column, you will see the Bill option.
  • This will open up your bill window and there you can see your Vendor Bill.
  • In the Vendor field, you can click the dropdown menu.
  • If you are entering the bill first time then you have to click on Add New and then enter the full information.
  • Let’s go ahead and email address pops up and also makes any changes here.
  • Now tap on the terms field. If the payment terms are already configured in the vendor’s file in QBO, they will be inserted automatically. Enter the payment terms if not. Net 30 refers to a payment term of 30 days for the bill.
  • After that, Enter the bill date and due date.
  • Then you have to choose the account in which you enter that bill and enter the description and enter amount and customer’s button.
  • If you are entering the products that you resell, then you have to enter those details in Item.
  • Once you are finished you have to select Save.

The first time you need to use each of the payment options, then you are required to provide the details for your payment account. Pay any of your vendors with the chosen payment method of credit card: QuickBooks Online Bill Pay is another feature that will provide a convenient way to pay any vendor with a credit card.

At any point, you need assistance or more than that you need some guidance support, then you just have to connect via live chat options.

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Frequently Asked Questions

How Does Bill Pay Work with QuickBooks?

QuickBooks has a feature called bill pay that enables users to handle and pay their bills online. You may quickly manage your payables, make payments, and even set up recurring payments for your routine spending by setting up pay bills in QuickBooks. In addition to saving time, this tool makes sure that your financial records are correct and current.

Can I Pay Bills Through QuickBooks?

What is the Difference Between a Bill and an Invoice in QuickBooks?

Which two Places in QuickBooks Online can You Start Setting up the Bill-pay Feature?

What is the Difference Between Expenses and Bills in QuickBooks Online?

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