QuickBooks Tip: How To Pay Bills (2 of 2)

This second part will continue our previous post, How to Enter Bills in QuickBooks, and touch upon the basic functions of the Bill Pay window in QuickBooks.

The Bill Pay window in QuickBooks allows you to select a bill and post the payment in a myriad of options to help track the credit card payments (liability) or cash payments via check or debit card (asset).

How to Pay Bills with QuickBooks Online

After completing the bill entering task (discussed in a previous post), paying them is the next step.

QuickBooks Online allows you to enter all the bills and then go to 'Pay Bills' to print checks, record a payment with a credit card, enter handwritten checks, or utilize the QuickBooks Online bill pay option.

Pay Bills With a Check and Print Checks

Some companies prefer to print checks rather than pay for expenses with a credit card or cash.

This provides an obvious paper trail, as you always receive a copy of your cashed check—or you can obtain one very easily.

QuickBooks Online offers an easy, quick way to perform this age-old task.

First, locate the 'New' button in the top left-hand corner and click on it. In the dropdown menu, click on' Pay Bills' under the second column labeled 'Vendors'.
The pay bill screen lists all previously entered outstanding bills. At the top of the page, choose the account from which you want the funds to be taken, the date of the checks, and the starting check number.
There is also a box labeled 'Print Later' if you wish to use it.
Place a checkmark in the box beside each check to be printed.
Click on the green box at the bottom right side of the screen and choose 'Save and Print' from the dropdown menu.
The 'Print Checks' screen allows you to review the information before printing. If all the information is correct, click on the green 'Preview and Print' box in the bottom right-hand corner.

Tip: If you haven't used the print check task before, you need to do a sample and adjust the printing to your checks. QuickBooks will give you the chance to do that before you print.
Once you are ready, load your checks into the printer. Proceed to the print page.
When the checks finish printing, a message will appear asking if they are printed correctly. This is your chance to reprint if any checks become jammed or are unusable.
A screen appears that states there are no checks in the print queue.

Pay Bills with a Manual Check, ACH, or Credit Card

If a bill is entered into QuickBooks and paid via a handwritten check, bank ACH, or Credit Card, the process would be almost the same as above:

Open the bill from the Pay Bills window or by going to the Vendor screen and clicking to edit the bill.
Click on Mark as paid in the top right corner of the screen.
Select the bank or credit card account from the dropdown.

If recording a manual check, select the account and enter the check number in the box labeled Ref no.
Enter the amount paid and apply it to the correct bill.
Click Pay Selected Bills

If a check has been manually cut already by a hand written check follow the same as you would for printing a check accept click 'Assign Check Number'.

QuickBooks Online Bill Pay

QuickBooks Online bill pay is one of the easiest and most efficient ways to pay bills and stay organized. Depending on the number of bills you want to pay each month, you may actually be able to do this even with the free plan.

A bill pay service is almost a must-have for restaurant bookkeeping due to the number of vendors that are dealt with daily.

Imagine having over 50 vendors with multiple bills requiring payments at least twice a month.

Whether you use checks or log in to make a vendor payment, the time spent on the approval and payment process can add up. It's a convenient and paperless way to pay and track your bills.

The beginning process is identical to printing checks, but choose Schedule Payment when you reach Step 4.

You can choose your plan here if you have not yet signed up for bill pay.

The information is automatically uploaded to your check register with the correct corresponding check number and amount. There is no printing, stamping, or signing, just approval with a password and a mouse click.

It is an excellent way to avoid purchasing checks and ensure everything is recorded correctly.

Please remember to verify the vendor name, address, and account numbers are correctly entered in the vendor information.

How to Apply Credits

In our previous post, How to Enter Bills, we touched on how to enter credits.

Here is how to apply that credit.

In the Bill Pay window, a box will appear in the Credit Applied Column if a credit balance needs to be applied.

Select the bill to apply the credit to and the credit amount will automatically apply and appear in the Credit Applied box.
If there is a balance to be paid it will calculate in the Payment box and the Total Payment Amount.

If you do not wish to make a payment at this time, zero the amount in the Payment box
If you are making payment follow the process listed above according to the payment type.