A Step-by-Step Guide to Paying Bills in QuickBooks Online

As a small business owner you likely receive bills on a regular basis from vendors and service providers. Recording and paying these bills efficiently is key to managing cash flow and keeping accurate books. QuickBooks Online makes it easy to not only enter bills but also organize, track, and pay them online.

In this comprehensive guide, we’ll walk through how to add bills, record payments you’ve made, and pay bills directly in QuickBooks Online.

Getting Started with Bills in QuickBooks Online

To start working with bills you first need to sign in to your QuickBooks Online company file. Click on “Expenses” in the left menu bar and then select “Bills.” This will open the Bills page where you can see any outstanding bills organized into tabs

• For Review – New bills sent to you for approval
• Unpaid – Open bills due now, soon, or later
• Paid – Bills already paid

Now let’s look at how to add new bills as they come in.

Entering Bills into QuickBooks Online

When you receive a bill from a vendor or service provider, you’ll need to enter it into QuickBooks Online to track what you owe. Here are the key steps:

• Click the “+ New” button and select “Bill.”
• Choose the vendor name from the dropdown menu.
• Select the payment terms that the vendor has provided.
• Enter the bill date, due date, and bill number or PO number.
• Fill in the expense details including category, amount, description, and tax.
• Select “Save and Close.”

The bill will now appear under the Unpaid tab, reminding you that payment is due.

Options for Paying Your Bills

Once bills appear in the Unpaid tab, you have several options for paying them:

• Pay Online with Bill Pay – If you connect bank accounts to QuickBooks Online, you can schedule online bill payments directly to vendors.

• Record Offline Payments – Select “Mark as Paid” to note bills you paid outside QuickBooks with cash, check, etc.

• Enter a Check Payment – Select “New Check” and assign it to a specific unpaid bill.

• Use a Credit Card – Choose “New” then “Pay Bills” and select a credit card account.

Let’s explore each of these bill payment options in more detail.

Paying Bills Online with QuickBooks Bill Pay

Paying bills directly from QuickBooks Online is fast and easy when you connect your bank account. Here are the steps:

• From the Unpaid tab, click “Schedule Payment” on a bill.
• Verify or change the payment amount if less than the full balance.
• Select which connected bank account to pull the funds from.
• Choose to send the payment now or schedule it for later.
• Click “Schedule Payment.”

The payment is processed and the bill is moved to the Paid tab.

Recording Offline Bill Payments

If you already mailed a check or paid a bill outside of QuickBooks Online, you need to record it. From the Unpaid tab:

• Click the Action dropdown on the bill and select “Mark as Paid.”
• Enter the payment date, amount, and account used.
• Choose which outstanding bills the payment applies to.
• Click “Save and Close.”

Paying a Bill with a Check in QuickBooks

To accurately reflect paying a bill by check, here are the steps:

• Select “+ New” then choose “Check.”
• Pick the vendor’s name from the payee field.
• Enter the bank account the check is drawn from.
• Select the open bill(s) to apply the check to from the outstanding transactions.
• Enter the check amount and payment amounts per bill.
• Click “Save and Close.”

Paying a Bill with Credit Card or Cash

Follow these steps when paying a bill with a credit card or cash:

• Select “+ New” then “Pay Bills.”
• Choose the bank account or credit card account used.
• Pick which outstanding bill(s) you want to mark as paid.
• Enter the total payment amount and amount per bill.
• Select “Save.”

The bills paid will be moved to the Paid tab so you have a record.

Tips for Managing Bills Efficiently

Here are some tips for streamlining bill payment in QuickBooks Online:

• Enter bills as soon as you receive them to stay organized.
• Attach PDF copies of bills directly in QuickBooks Online.
• Add bill due dates to your calendar for easy reminder tracking.
• Pay bills on time to avoid late fees and interest charges.
• Use Bill Pay to automatically pay recurring monthly bills.
• Set bill reminders and alerts so you never miss a payment.

Ready to Pay Bills Seamlessly?

By entering your regular business bills and expenses into QuickBooks Online, you can easily track what you owe and when. Taking advantage of QuickBooks’ easy online bill pay saves time and gives you peace of mind that payments are sent out promptly. Automated alerts can help you avoid ever missing a due date.

With the simple bill pay process in QuickBooks Online, you can say goodbye to that stack of bills on your desk! Properly recording and managing payables is key for any small business. So implement these best practices today.