The vendor center in QuickBooks is where you create a database of people that you pay money to. The vendor center is fairly straightforward to navigate and use for even the beginning QuickBooks user. I wanted to offer some advice on using the vendor center effectively and efficiently.
Adding a Vendor
Adding a vendor to QuickBooks is very simple. You can type the name into any bill or check. If the vendor is not in the system QuickBooks will alert you and allow you to quick add the vendor or set them up. If you click set up you will be brought to the vendor center. You can also add a vendor by clicking on the vendor center and clicking New Vendor in the upper left hand portion of the screen. This will launch a new window where you can fill out all of the basic contact information etc. I would highly recommend filling out as much information as possible.
Tracking and issuing 1099's for independent contractors can be a pain for some businesses. QuickBooks makes it extremely easy to track and issue 1099's. Start by requesting a W-9 form from each vendor. Now add the vendor to QuickBooks using the filled out W-9 form and then click the additional info tab to enter the vendor's Tax ID #. If the vendor is eligible for a 1099 simply select the box 'Vendor eligible for 1099.' To find out more about using QuickBooks to track 1099 contractors read our detailed blog post. To read more about staying in compliance with issuing 1099's read this blog post.
Navigation Tips and Tricks
I want to point out a few easy tricks within the vendor center that can save a lot of time.
- If you have a long vendor list and need to jump to a certain spot on the list, highlight a vendor on the left hand side and then type the first letter of the name of the vendor to quickly jump down the list.
- If you are looking up bills and payments to a vendor to see if and how things were paid use the drop down boxes on the right (show, filter by and date) to refine your search.
- Right clicking on any transaction on the right hand side and clicking view transaction history shows the details of the transaction. So if you need to see how a particular bill was paid and on what date click on the transaction history, which will show a date and check number for the payment.
- Entering bills from the vendor center is another overlooked operation. If you are unsure if a bill has been entered into the system go to the vendor center and look for yourself. If it has not been entered click on New Transactions on the upper left and select enter bill.
- Lastly, anything within the vendor center can be exported to word or excel, which makes sharing transaction information with your vendors quick and easy.
The vendor center in QuickBooks is by no means complicated. However, by becoming more familiar with the operations within the vendor center you will make handling your accounts payable much more manageable. If you have any additional questions feel free to drop me an email.