How To Pay A Bill In QuickBooks Online: A Step-By-Step Guide

Paying bills is a key part of running any business. Whether you’re a solopreneur or a large corporation, you likely have recurring expenses that need to be tracked and paid on time. That’s where QuickBooks Online comes in. This popular accounting software makes it simple to not only track your bills, but also pay them directly within the platform.

In this comprehensive guide, we’ll walk through the entire bill payment process in QuickBooks Online. By the end, you’ll know exactly how to enter bills, record payments, and keep your vendor accounts up-to-date. Let’s get started!

Entering Bills in QuickBooks Online

The first step to paying a bill is entering it into QuickBooks Online There are a couple different ways you can go about this

Manually Adding a Bill

1. Log into your QuickBooks Online account and navigate to the Expenses section. Select “Bills” from the menu.

2. Click the “+ New” button and choose “Bill” from the dropdown menu,

3. Select the appropriate vendor from the dropdown menu.

4. Choose the payment terms that the vendor has provided on the bill. Common terms are Net 30, Net 60, etc.

5. Enter the bill date, due date, and bill number exactly as they appear on the hardcopy bill.

6. Select an expense account to categorize the bill under. Give a brief description.

7. Enter the amount due and any applicable sales tax.

8. Click “Save and Close.” The bill will now appear under the Unpaid tab.

Uploading a Bill

If you receive a digital copy of a bill, you can upload it directly into QuickBooks Online:

1. Navigate to the Bills page and click the “Add Bill” dropdown menu.

2. Select “Upload from computer” and choose the bill file from your computer. Supported file types include PDF, JPEG, PNG, GIF.

3. The uploaded bill will appear under the For Review tab. Verify the vendor, amount, and other details are accurate.

4. Click “Save” to move the reviewed bill to the Unpaid tab.

Whether you enter bills manually or upload them, having them all in one place makes it easy to track unpaid balances. Now let’s go over how to pay those bills within QuickBooks.

Paying Your Bills in QuickBooks Online

Once your bills are entered into the system, you’ll want to go back and record payments made towards them. Here are some ways to do that:

Using QuickBooks Bill Pay

QuickBooks Bill Pay provides a fast way to pay bills directly from the software.

1. From the Unpaid Bills tab, click “Schedule Payment” next to the bill you want to pay.

2. Choose your connected bank account or credit card that you want to pay from.

3. Adjust the payment amount if needed. The full unpaid balance will populate by default.

4. Select a payment date.

5. Click “Schedule Payment” to finish the process.

Recording Offline Payments

If you pay a bill away from QuickBooks by cash, check, or other method, you’ll need to log the transaction manually:

1. Navigate to the Unpaid Bills tab and click “Mark as Paid” next to the now-paid bill.

2. Verify the payment details including date and account used.

3. Enter the amount paid and any related bills if you made a single payment toward multiple invoices.

4. Click “Save and Close” to record the payment.

You can also batch mark multiple bills as paid at once to quickly catch up on data entry. The bills will be marked paid and moved to the Paid tab.

Paying with Checks

To create and print a physical check directly from QuickBooks Online:

1. Go to +New > Check.

2. Select the payee from the vendor dropdown menu.

3. Choose the bank account the check will be drawn from.

4. Enter the check amount and select any outstanding bills/credits to apply it to.

5. Click “Print Check” to generate a physical check to send to the vendor.

Recording a check correctly will ensure your bookkeeping stays up-to-date.

Paying with Cash or Credit Card

To log a bill payment made by cash, credit card, or other payment method:

1. From +New, select “Pay Bills.”

2. Choose the account you paid from and enter the payment date.

3. Check the bill(s) paid and enter amounts in the Payment column.

4. Click Save to record the transaction.

Managing Bills in QuickBooks Online

Now that you know how to enter and pay bills in QuickBooks Online, let’s go over a few key pages that will help you manage bills like a pro:

The Bills Page

This is command central for tracking all of your bills. It has tabs for bills that are For Review, Unpaid, and Paid. Useful actions include:

• Reviewing bill details
• Scheduling payments
• Marking bills as paid
• Printing checks
• Applying credits

Stay on top of upcoming due dates and amounts owed in the Unpaid tab.

Reports

Run reports like Unpaid Bills Detail and A/P Aging Summary to get insights into your accounts payable. Look for trends of late payments, average days to pay bills, etc.

Chart of Accounts

Make sure expense accounts like Automobile Expenses or Office Supplies are properly configured to categorize bills correctly.

With a solid bill payment process in place, you’ll keep vendors happy, reduce late fees, and have greater visibility into your cash flow. QuickBooks Online makes it easy to not only stay organized, but also take action on paying outstanding bills.

Key Takeaways on Paying Bills in QuickBooks Online

• Enter bills manually or upload digital copies directly into QuickBooks Online.

• Use QuickBooks Bill Pay to easily pay bills online through the software.

• Record offline payments made by cash, check, or other methods so your books stay up-to-date.

• Paying with checks allows you to print physical checks right from QuickBooks to send to vendors.

• Schedule payments, mark bills paid, apply credits, print checks, and more right within QuickBooks Online.

• Regularly review unpaid bills, run aging reports, and optimize your chart of accounts for smooth bill payment management.

Paying bills might not be the most exciting task, but it’s critically important. With this guide, you have the knowledge to turn bill payment into a simple, streamlined process using QuickBooks Online. Now those pesky invoices won’t pile up – you’ll handle them efficiently and effectively each month. Isn’t it nice to gain control over your financial admin? With QuickBooks Online, you can. So take a deep breath and pay those bills with confidence.