QuickBooks Tips > QuickBooks Online > Modernize Your Payables with QuickBooks Online
Modernize Your Payables with QuickBooks OnlineIf you don’t stay on top of your payables, it can quickly disrupt your cash flow and strain vendor relationships. Tracking bills and expenses on paper makes it easy to miss a payment. And handling one-off purchases often requires extra time spent searching through receipts and statements. QuickBooks Online helps keep everything organized and up to date while reducing manual work. Here’s an overview of key QuickBooks Online features for managing vendor transactions, expenses and payments. Creating Vendor Records QuickBooks Online lets you add vendor records on the fly when creating transactions. But it’s recommended that you set them up early, when you’ll be more likely to include additional details you’ll need later. To get started, click Create in the upper-left corner, then Add vendor under Vendors. (The Create button won’t work if you have an App or your list of Apps open. If it’s not opening the list of options, click the Home button in the toolbar to clear it.) Tip: You can import vendors from a list you’ve created in Microsoft Excel or Google Sheets. QuickBooks Online explains how to do this. A panel will slide out from the right, containing all the fields available for a vendor record. The Vendor display name is the only required field. Enter as much as you can now. But you can go back and add more information later if needed. When you’re done, click Save. Once you’ve created a vendor record and entered transactions, you can view its details as well as the related transactions. 
Documenting Expenses You can manually enter the details of an expense by clicking Create in the upper-left corner, then selecting Expense under Vendors. If you’re trying to make better use of the new user interface and want to see what other options are available, click Home in the main toolbar. Then click the Expenses & Pay Bills App at the top. In the corresponding list that appears on the left, select Expense transaction. Click New transaction in the upper right and select Expense. Complete the fields in the form that opens. There are faster, easier ways to record expenses in QuickBooks Online. You can:
QuickBooks Online will “read” the receipt and autofill as many fields as possible in a form on the site. The receipt image will be attached. Managing Payments With QuickBooks Online, processing your bills has become more flexible and efficient than ever. You can still write checks or enter credit card numbers offline, then record them and mark them as paid on the site if that’s what you prefer. But with Bill Pay Basic now included, you also have the option to automate payments. This added capability can save time, simplify your process and help you stay even more organized. 
Bill Pay Basic is a free, entry-level service that lets you pay bills via ACH (bank) or by check through QuickBooks Online. With this free version, you’re limited to five ACH payments per month. After that, you’ll pay à la carte prices. If you pay many vendors regularly, you might consider upgrading to a paid level that includes more or even unlimited ACH payments per month. Bill Pay includes additional automation features, such as instant or next-day payments and the ability to create pre-filled bills by forwarding emails. To learn more or sign up, click the Home icon in the main toolbar, then Expenses & Pay Bills | Overview | Schedule online payment and follow the prompts. Paying 1099 Contractors Do you use freelancers or independent contractors? You can pay them through QuickBooks Online if you have:
Processing Vendor Credits A vendor credit in QuickBooks Online is a transaction that records funds a vendor owes your business when items are returned or damaged, or when you’re overbilled. How you enter the refund depends on how you record purchases with the affected vendor. QuickBooks Online has a tool for processing vendor credits. However, it’s easy to make mistakes that can adversely affect your bookkeeping, so guidance is recommended when dealing with these transactions. Managing Purchase Orders If you have vendors that require purchase orders, you can process them in QuickBooks Online. Click Create, then Vendors | Purchase Order. The purchase order’s status will be Open. When the vendor accepts it, QuickBooks Online can convert the purchase order into an expense or a bill, whichever is appropriate. Gain Financial Clarity Use QuickBooks Online to streamline your processes with detailed accounts payable tracking and reporting. This approach provides a more complete view of your cash flow and overall financial position, helping you stay organized and informed. Contact the office with any questions. Previous Tip - Back to tips - Next Tip |
