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 1099's
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.
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.