In this article, you will get to know all about tracking bills and recording payments.
QuickBooks Online makes it simple to record business expenses in addition to sales tracking. A more detailed view of your business and profit is provided when you enter your income and expenses.
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.
Enter the expense as a bill if you intend to pay for it later. You have the option of recording one bill at a time or several bills for various vendors all at once. If you have already paid for a business expense, on the other hand, you should record it as an expense. These particular transaction types instruct QuickBooks on how to record each transaction.
Here’s how to input bills in QuickBooks and track payments made toward them.
How to Enter the Bills into QuickBooks?
When you receive a bill from a vendor, you have to abide by the following steps to record it:
Step 1: Choose + New.
Step 2: Choose Bill.
Step 3: Choose a vendor from the Vendor selection.
Step 4: Choose the terms of the bill from the Terms menu. You will get to know about the anticipated payment date for your vendor.
Step 5: You must not forget to enter Bill no., Due date, and Bill date exactly as they appear on the bill.
Step 6: In the area titled “Category details”, enter the bill’s details. Choose your cost account from the Category selection to keep track of expense transactions. Next, write a description. As an additional option, you can itemize the bill by entering individual goods and services in the Item details area.
Step 7: Type in the tax and amount.
Step 8: Select the Billable checkbox and type the customer’s name in the Customer field if you intend to bill them for the expense.
Step 9: When finished, choose Save and close.
Note: You can also choose locations from the Location menu if you have various work locations or business divisions.
How to Record Payments towards Bills?
There exist two different ways to record bill payments. All you have to do is adhere to the relevant steps.
Case 1: You Have Paid for the Bill Using Cash or Credit Card
Use this technique to document payments made for a bill with cash and credit cards. After each payment, make a separate note of it.
Note: All that is being recorded here is the accounting for your bill payments. You must continue to handle payments as instructed by your vendor.
Step 1: You should choose +New.
Step 2: You should select Pay Bills.
This displays every bill you’ve submitted into QuickBooks that is yet unpaid, along with its balance and due date. It displays the previous 365 days by default. Select Filter to alter the date range or display a single payee (for instance, a vendor).
In order to keep track of the payments made towards the bill, you should stick to the steps below.
Step 1: Choose the account from which you paid the bill from the Payment account selection. Choose checking, for instance, if you paid using a checking account.
Note: Record separate payments on different days, or keep track of payments for the same bill from different accounts (for example, part by check and part by credit card).
Step 2: You can input the Starting check number if you choose a checking or savings account. This is not mandatory.
Step 3: Make an entry of the Payment date
Step 4: Check the boxes next to each bill that you have paid.
Step 5: Enter the sum that you paid toward each payment in the Payment field.
Note: You can apply any credit you have with the vendor in the Credit Applied column.
Step 6: Select the Schedule payments online dropdown when you are finished. Choose Save or Save and close next. To find out about the various payment processing choices, select Schedule payments online.
Every payment you record appears on the Expenses menu. The checks are ready to print, and the invoices are noted as paid.
Case 2: You Have Paid for the Bill with a Check
You should only follow the steps highlighted below if you have made the payment with a check. This accurately records the payment so that QuickBooks remains accurate:
Step 1: Choose + New.
Step 2: Choose Check.
Step 3: Choose the vendor you paid from the Payee dropdown menu. This brings up a popup displaying all of their unpaid debts.
Step 4: To add an open bill to the check, select Add. Select the tiny arrow next to the amount if you can’t see this. You can also add credit from the Credits section if you have credit with the vendor.
Step 5: Choose the account from which you write the check from the dropdown menu under Bank account.
Step 6: You should enter the check’s amount in the Amount field.
Step 7: Select the invoices that the check payment was made in the section titled Outstanding Transactions. Select the checkboxes for the various invoices it covers if applicable. You can divide the payment and enter a different amount in the Payment column for each bill.
Step 8: After you are done, you should select Save and new or Save and close.
Step 9: In order to print out a physical check, you should select Print check.
Case 3: You Have Paid for the Bill Electronically
Step 1: You should click on the +New button that is visible at the top of the QuickBooks screen. Then you should select Pay Bills Online.
Step 2: Your unpaid debts will then be listed in QuickBooks Online. On the Pay Bills window, check the boxes next to the bills you want to pay, then click the Next button.
Step 3: To access a screen where you can provide the essential details to make an online payment, click the Vendor name for each bill. You have to provide the required payment details.
Step 4: After you have provided the details for individual bill payments, you have to click on the Submit Payment button in order to submit the scheduled payments.
The article delves into the various methods that you can try if you wish to enter bills and record bill payments in QuickBooks online. You will also get to know about possible scenarios and act accordingly.
But, if you cannot decipher the steps or have any confusion, you should not hesitate to connect with an Dancing Numbers experts, who would give you insight into various steps.
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+1-347-428-6831 or chat with experts.
Frequently Asked Questions (Faqs)
What is the ‘Select How Vendor Receives’ Option While Paying Bills Electronically?
In the ‘Select How Vendor Receives’ you have to indicate the payment method you want the vendor to accept. Both choices are cost-effective. And these are:
• Bank Transfer or an ACH will be processed in one to four business days
• A thorough paper check in a span of five to seven business days
What are the Available Payment Methods When Paying Bills Electronically?
You have the option of choosing a particular method in order to make the payment. When you click on the option ‘Select the Payment Method’, You will have the following options:
• Debit card which is free
• Bank account which is free
• A Credit card which charges a 2.9
When you make use of the payment option for the first time, you will have to provide the details of the payment account.
What is the ‘Funds Deduction Date’ in Paying Bills Electronically?
You have the option of choosing the day you want the money taken out of your account. Since transfers typically take some time, you might need to select a deduction date a few days before the payment due date.