In this episode of the Polymath Video Tutorial Series: Changes to QuickBooks Online we cover how to use QuickBooks Online for paying bills. Please note that this feature is only available in the Essentials and Plus versions of QuickBooks Online, so this is a great video to watch if you are considering an upgrade from the simple start.
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Make sure to check out all the other great videos in the Polymath QuickBooks Tutorial Series:
- Episode 1 – The Click Map
- Episode 2 – Overview
- Episode 3 – How to Add a User
- Episode 4 – Sales Receipts
- Episode 5 – Invoices
- Episode 6 – Receive Payment
- Episode 7 – Create Deposit
- Episode 8 – Estimate
- Episode 9 – Expenses
- Episode 10 – Entering Bills
- Episode 12 – Reports
Welcome, viewers, to this Polymath bookkeeping instructional video. I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services.
In our last episode, we covered how to enter a bill. In this video we will cover how to pay that bill. Keep in mind that these features are only available in the Essentials and Plus versions of QuickBooks Online.
If you’re just joining us, and you don’t know how to enter a bill, please stop this video and watch Episode 10 of this series. You can also check out the other videos in this series for great tips and tricks on how to use QuickBooks Online.[expand title=”Continue reading…”]There are two different ways to pay bills in QuickBooks. You can pay a single bill or you can pay a group of bills all at once.
First, we’re going to look at how to pay an individual bill. From within the Vendors page, you can click on Make Payment or from within the bill itself you can click Make Payment from the upper right hand corner of the bill. Either way you will get to the Bill Payment window. This window functions like the Expense window. If you’re not comfortable using the Expenses window, check out Episode 9 of this series. Similar to Expenses, you can either enter a bill payment that you’ve already made if you’re doing your QuickBooks data entry after the fact or you can print a check from within your QuickBooks to give that check to your vendor. If you pay an amount that is different from the amount on the bill from your vendor, you can change that amount right here in the Bill Payment window.
If you are paying more than one bill at a time, you can click the plus sign, also known as the Create Menu, at the top of your QuickBooks Online screen. In this menu you will click on Pay Bills from under the Vendors heading. This will take you to the Pay Bills window. As you can see, there are a few bills waiting to be paid in our sample company file. You can select the bills that you want to pay by checking them off. Just like when paying an individual bill you can either enter a bill payment after the fact or you print all of the checks in a batch.
If you’re paying an amount different from the amount on the bill, you can change the amount that you are paying for each bill in the far right column. When you have multiple bills due for the same vendor, QuickBooks will automatically combine those bills into a single payment when you check those boxes. If you paid those bills in separate bill payments be sure that you only select one of the bills in the window at a time, complete the bill pay process and then start again for each payment that you actually submitted to that vendor.
Sometimes your system may show a Vendor Credit. This can be because they gave you a credit for products or services that didn’t work out, or it could be because you overpaid them previously. Either way you can easily apply the credit in the Bill Pay window. You will see in this window that any credits show up in the Credits column. In this case, the amount of the credit equals the amount of the bill so when we check off that bill, it shows the amount to pay as 0.00. By clicking Pay Bills, you will apply that credit to the open bill. You can view any vendor’s balance at any time by clicking on the Vendors tab on the left side of your QuickBooks Online screen.
Now you have seen the full process for entering and paying bills. QuickBooks Online Simple Start users can consider if this would be a useful feature to add for your business.
Stay tuned for the final video in this tutorial series to learn how to access and interpret your reports.
I am Ingrid Edstrom of Polymath LLC and Ashland Bookkeeping Services. Thank you for watching.[/expand]