In this tutorial, I will show you how easy it is to pay your bills in QuickBooks Online and avoid overpaying your vendors. BILL automatically updates QuickBooks, so your team just enters a payment once and they’re done—it’s fast and accurate. And to speed up reconciliation, invoices are matched with remittance information and fully paid POs are automatically closed out. First-time clients will need to set up the payment methods they wish to use. To set up an expense account, click on Lists and then click on Chart of Accounts under the same menu.

With BILL and profit and loss statement Online, bill pay is easier to manage and more transparent. Review and approve payments anytime, on any device. Automated approval workflows and mobile access keep you on the same page, even on the go.

Can I pay bills through QuickBooks?

In the next section, we’ll look at paying bills, such as the one that we’ve just created. Updating the amount will cause the total amount for the bill to change automatically. More category details can be added on other lines, and more line can be added if needed. This time, if you select a vendor, information such as the mailing address and terms will show up automatically.

You can then see your new expense in your Expenses list. Next, you need to choose the account that paid for the expense. In this example, we have an account with the oil company. You can also choose to only pay part of the open balance.

Code each equipment rental, supplies, and other transaction type expenses in an account Category as a line item. You can add an optional Description for each line item. The direct deposit feature will pay the contractor the total amount.

Next to the account is your current balance with that account. If you are paying with a checking or savings account, you can choose what the next check number will be. For electronic payments, you can enter EFT in the check number field. If you are paying with a credit card, you won’t have the options for starting check number or to print later. To start paying bills using QuickBooks Desktop, go to Vendors, Pay Bills, and Schedule Online Payment. You will then have to go through the set-up options to set up your bank account with QuickBooks.

Methods for Managing Bills in QuickBooks Online

When BILL syncs with QuickBooks Online, payments update automatically to save you time, reduce errors, and speed up reconciliation. At the bottom of the form is a space for a memo and attachment. Add any extra instructions or reminders here and then click the Save and Close button to finish reporting your expense.

The Print Checks screen displays a list of all the checks that have been written from the specified checking account. To print the check/s, place a checkmark next to the check/s you wish to print, provide a starting check number, and click the green Preview and print button. Finally, follow the on-screen instructions to preview and print your checks. Whether you choose ACH or paper check won’t affect your cost. However, paper checks typically take 5-7 business days to arrive while bank transfers are faster with an estimated arrival time of 1-2 business days.

Thankfully, it’s again a fairly simple and straightforward process. Our ongoing accounting and advisory services are year-round partnerships to keep your nonprofit’s finances healthy and relieve your stress. This way, you can focus on the activities that power your mission. Implement with QuickBooks in as little as a week, unlocking your potential for faster, more efficient payments and allowing you to quickly onboard staff. Making your first payment with BILL is easy, and you still have all the robustness and flexibility you need to manage your AP/AR process.

How to Enter Bills and Mark Them Paid in QuickBooks Online

In the Payment account drop-down select the bank account used to pay the bill. From the Pay Bills Online screen, select the Unpaid bills tab to manage bills. Sonya Tapley has 15 years of accounting experience with both very small and very large organizations. She started Cloud Friday because small business is where all the passion for creation and service is found. Cloud Friday’s goal is to always make sure we do things with honesty and integrity.

QuickBooks automatically enters the amount you owe the vendor in the “Amt. To Pay” column. If you need to void a vendor direct deposit for a contractor, refer to these linked instructions for QuickBooks Online Payroll and QuickBooks Desktop. Direct deposit in QuickBooks is useful for making and coding independent contractor payments, plus tracking 1099 information. To make a direct deposit payment to a contractor, you need an Intuit or QuickBooks Payroll subscription. QuickBooks charges direct deposit fees for only those contractors paid in the billing cycle. With the integrated ACH Universal add-on to QuickBooks, you don’t pay ACH transaction fees for vendor bill payments.

On the new account window menu, click on an expense type of account and click continue. When I first tried this out I thought why would I use this, then I thought, why wouldn’t I? Even if I am going to use checks, why not let them pay the cost of the check, of printing the check and mailing the check, especially since it is ‘free’ to me. Click the “Set Discount” or “Set Credits” button to apply vendor discounts or credits to the bill. Click the “Go To Bill” button on the Pay Bills window to review or edit the details of the bill.

QuickBooks Add-Ons

You can make a partial payment by changing the amount of the bill in the “Amt To Pay” column. Click the “Date” field to select the bill’s payment date. Sagenext Infotech LLC is an independent cloud hosting company that hosts legally licensed QuickBooks, Sage Products, and other tax and accounting applications.

Once you are ready to pay, you can assign check numbers or mark the checks to be printed. Choose which bank account it’s coming from to be sure the checks post to the correct account. You can set which account you want your Pay Bills checks to default from in your Preferences.

Step 2: Select the Bills You Want To Pay

There are no subscription fees, only a fee for each transaction. Clients can pay via paper check, credit card, or ACH. You can create as many expense accounts as you need. The following is a step-by-step method on how to enter bills into the QBO system. There are also some terms that I’ve highlighted at the bottom of this blog that may be useful to anyone just starting out. Select either Bank transfer (ACH/EFT) or a paper check.

When you’re finished creating your online payment instructions, this is how to send them to your financial institution. You can create online payment instructions in the Pay Bills window by following these easy instructions. You then will add the payment date and payment method. For this transaction, we used our American Express card. Here you can enter any products or services included in the bill in much the same way that you did with Category Details.

Open the “Vendors” menu, then select “Pay Bills” to open the Pay Bills window. To access the settings menu, click the gear icon in the upper right corner of the table. QuickBooks will automatically display information such as the invoice number, supplier’s name, terms, and the due amount of the particular bill. Supplier’s bill for which you want to make payment.

The automatic process can reduce the burden faced by the company while paying different bills. Entering the bills in the accounting software can be required before making the payment. Once they have been entered, you should understand how to pay bills in QuickBooks. You need to use the Pay Bills button for carrying out the method.

• In QuickBooks, a bill is a document that represents a payment you owe to a vendor for products or services you have received.
• If this is a vendor that you’ve never entered into QuickBooks before, can click the “Add New” button to enter their information.
• For electronic payments, you can enter EFT in the check number field.
• You can make several cost accounts as much as you require.
• Your invoices will be marked as paid in QuickBooks once scheduled.

The per transaction ACH fee is $3 for QuickBooks Desktop. With the combined software, you save time and manage labor costs, increasing small business efficiency. Select the Expenses tab and select the related expense account. Select the Bank Account dropdown and select the checking account you use to pay contractors. Select the Banking menu and select Write Checks to start the direct deposit. QuickBooks allows you to double-check your direct payment transaction for the total amount.