Learn how to track bills and record the payments.
In addition to tracking sales, QuickBooks Online makes it easy to record business expenses. Entering your income and expenses gives a more complete picture of your business and profit.
If you plan to pay for the expense in the future, enter it as a bill. You can record bills one at a time, or record multiple bills for multiple suppliers at once.On the other hand, if you've already paid for a business expense, enter it as an expense.These specific transaction types tell QuickBooks how to record everything. Here's how to enter bills and record payments towards them in QuickBooks.
Or, learnthe difference between bills, cheques, and expenses.
Enter bills into QuickBooks
After you get a bill from a supplier, here's how to record it:
- Select + New.
- Select Bill.
- From the Supplier ▼ dropdown, select a supplier.
- From the Terms ▼ dropdown, select the bill's terms. This is when your supplier expects to be paid.
- Enter theBill date,Due date, andBill no. as they're recorded on the bill.
- Enter the bill details in theCategory details section. From theCategory dropdown, select theexpense account you use to track expense transactions. Then enter a description.
Tip:You can also enter specific products and services in the Item detailssection to itemise the bill.
- Enter theAmount and GST. The total amount displayed is based on the option selected in the Amounts are field.
- If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in theCustomer field. Learn moreabout billable expenses.
- When you're done, selectSave and close.
Tip: If you have multiple worksites or business segments, you can also select locations from the Location ▼ dropdown. Learn how toturn on and use location tracking.
Record payments towards bills
There are two ways to record bill payments. Follow the relevant steps below.
If you paid for the bill with a credit card or cash
Use this method to record cash and credit card payments towards a bill. Record separate payments each time you make them, or they can be recordedtogether.
Important: This is only recording the accounting for bill payments you make. You still need to process payments the way your supplier requests:
- Select + New.
- Select Pay bills.
This shows all outstanding bills you've entered into QuickBooks, including their balances and due dates. By default, it shows the last 365 days. To change the date range or to view one specific payee (for example, supplier), selectFilter.
To record payments made towards a bill:
- From thePayment account dropdown, select the account you paid the bill from. For instance, if you paid from your current account, select current.
Tip:To record payments towards the same bill made from different accounts (for example, part by cheque and part by credit card), or to record separate payments made on different days, enter each payment separately (day by day and account by account).
- If you select a current or savings account, you can enter theReference no. This is optional.
- Enter the Payment date.
- Select the checkboxes for the bills you made a payment towards.
- In the Payment column, enter the amount you paid towards each bill.
Tip: If you have credit with the supplier, you can apply it inthe Credit Applied column.
- Select Save, or Save and close.
The selected bills are marked as paid.
If you paid for the bill with a cheque
Only follow these steps if you paid with a cheque. This records the payment in a specific way so QuickBooks stays accurate:
- Select + New.
- Select Cheque.
- From thePayee dropdown, select the supplier you paid. This opensa window with all of their outstanding bills.
- SelectAdd to add an open bill to the cheque.Note:If you don't see this, select the small arrow next to the amount.If you have credit with the supplier, you can also add it from theCredits section.
- From theBank account dropdown, select the account you made the cheque payment from.
- In theAmount field, enter the cheque amount.
- In theOutstanding Transactions section, select the bills the cheque payment went to.Tip: If it covers multiple bills, select the checkboxes for those bills. You can split the payment and enter an amount for each bill in thePayment column.
- Select Print.
- When you're done, selectSave and new orSave and close.
FAQs
Sign in to your QuickBooks Online company file. Select Expenses, then Bills (Take me there). Select Schedule Payment for the relevant bill. Select Edit, then enter the amount you'd like to pay.
How to enter a bill payment in QuickBooks Online? ›
Sign in to your QuickBooks Online company file. Select Expenses, then Bills (Take me there). Select Schedule Payment for the relevant bill. Select Edit, then enter the amount you'd like to pay.
What does enter bills mean in QuickBooks? ›
In QuickBooks, you can record transactions that you need to pay at a future date, including expenses incurred, materials purchased, or services provided by a vendor. This way, you can keep track of all your accounts payables and know what or when a bill needs to be paid.
How to enter multiple bills in QuickBooks Online? ›
Enter multiple bills or expenses at the same time
Select New + and then Batch transactions. In the Select transaction type ▼ dropdown, select Bills or Expenses. Note: You can only enter one type of transaction at a time, either bills or expenses, but not both. Select any of the fields on line 1 to start.
What is the difference between bills and Expenses in QuickBooks Online? ›
However, in QuickBooks, they do have two different meanings. A bill is money that your business owes but will pay at a later date. An expense is money that your business spends at the time of purchase.
How to record payments in QuickBooks Online? ›
Enter a payment from a customer
- From the QuickBooks Home page or the Customers menu, select Receive Payment.
- In the Received From drop-down, select the customer's name.
- Enter the Amount received.
- Make sure the date is correct, then choose the Payment method.
- Select the invoice or invoices you'd like to pay.
Step 2: Add a transaction to the account
- At the very top of the list, select the Add journal entry, Add deposit or Add cheque ▼ dropdown. ...
- Select the type of transaction you want to add.
- Fill out the fields to complete the transaction.
- When you're done, select Save.
Bill Pay helps you manage your cash flow by giving you more flexibility. You can pay bills directly from QuickBooks with your bank account, debit or credit card. You can choose how your vendors receive their payment by ACH or check. Once you schedule your bills they automatically show as paid in QuickBooks.
Is rent a bill or expense? ›
In general, rent or mortgage payments come under the category of operating expenses. This is because they are necessary costs of doing business and are not directly related to the production of goods or services. Other examples of operating expenses include office supplies, utilities, and insurance.
How to apply a journal entry to a bill in QuickBooks Online? ›
by Intuit• Updated 6 months ago
- Select + New.
- Select Receive payment.
- Choose a customer.
- Under Outstanding Transactions, select the invoice.
- Under Credits, select the journal entry to apply it as a credit.
- Select Save and close.
> Upload receipts or bills from your computer
- In QuickBooks, go to Transactions.
- Select Receipts (Take me there).
- Select Upload from computer.
- Look for the receipt or bill, select Upload. Note: Each image or file should only contain a single receipt or bill.
At the very top of the list, select the Add journal entry, Add check, or Add deposit ▼ dropdown menu. Select the type of transaction you want to add. Fill out the fields to complete the transaction. When you're done, select Save.
Should I write checks or enter bills in QuickBooks? ›
There are two primary reasons to enter the bill first, instead of just writing a check. First, QuickBooks will track when the bill is due. When you enter the bill you enter in the due date and the payment terms (e.g., net 30). QuickBooks will then produce of report of what bills are coming due.
How do bills work in QuickBooks Online? ›
Enter bills into QuickBooks
- Select + New.
- Select Bill.
- From the Vendor ▼ dropdown, select a vendor.
- From the Terms ▼ dropdown, select the bill's terms. ...
- Enter the Bill date, Due date, and Bill no. ...
- Enter the bill details in the Category details section. ...
- Enter the Amount and tax.
The process begins by logging into your QuickBooks Online account and navigating to the 'Expenses' tab. From there, locate the specific expense that needs to be converted to a bill, and click on it to access the details. Next, select the 'More' option, followed by 'Add to Bill'.
Does QuickBooks Online include Bill Pay? ›
Yes! All QuickBooks Online plans come with basic bill management features. If you want to pay vendors and contractors using QuickBooks, you'll need to pick a Bill Pay plan.
How to change an expense to a bill payment in QuickBooks Online? ›
The process begins by logging into your QuickBooks Online account and navigating to the 'Expenses' tab. From there, locate the specific expense that needs to be converted to a bill, and click on it to access the details. Next, select the 'More' option, followed by 'Add to Bill'.
How to record ACH bill payment in QuickBooks Online? ›
Online ACH payments
- Select the + New button.
- Under VENDORS, click Pay bills.
- Check all the vendors you want to pay.
- Hit Schedule payment online.
- Proceed with the onscreen steps, then choose the ACH payment.
