This tip was inspired by those of you who’ve reached out asking “What’s the proper way to enter a bill and pay it in QuickBooks?”.

I created a video to share how I recommend entering bills and how to decide if this is a feature you should even be using in QuickBooks since it’s a two-step process. Remember… don’t waste time on features you don’t need to be using. 😉

I also included how to properly pay bills with your credit card in QuickBooks.

Are you ready to learn how to enter and pay bills in QuickBooks Desktop?

If you’re looking for the Online version of this video click here

Steps To Enter a Bill in QuickBooks Desktop:

1. Open the ‘Enter Bills’ window: Choose Vendors > Enter Bills.
2. Select the Vendor: From the drop-down menu, choose the vendor that you received the bill from.
3. Enter the Date: Input the date that is listed on the bill you received.
4. Enter the Bill’s Reference Number: This can be found on your bill and can include an invoice number or other identifying details.
5. Input the Amount Due: This will be the total amount that is due on your bill.
6. Choose an Account for the Bill: If it’s a bill for something like utilities or rent, you might choose an expense account. If it’s a bill for items that you’ll sell in the future, you might choose an inventory asset account.
7. Input a Memo (optional): You can write a short note about the bill if needed.
8. Assign Billable Customers or Class (optional): If you need to charge this bill back to a customer, or if you want to keep track of expenses for specific jobs or locations, use these fields.
9. Save and Close: Click on this button to save and close the bill, or click “Save and New” to save and enter another bill.

Steps To Pay a Bill in QuickBooks Desktop:

1. Open ‘Pay Bills’ Window: Choose Vendors > Pay Bills.
   Select the Bill to Pay: From the list, select the bill or bills that you want to pay. You can use the filter options to find the specific bills you are looking for.
2. Choose Payment Account: From the dropdown menu, select the bank or credit card account from which you will make the payment.
   
3. Enter the Payment Date: Input the date you’re making the payment.
   
4. Choose Payment Method: Select the method of payment (check, credit card, online bank payment, etc.)
   
5. Enter Payment Details: If you’re paying by check, input the check number. If you’re paying by credit card, enter your credit card details.
   
6. Review Amount to Pay: Check the amount that QuickBooks auto-populates in the ‘Amount to Pay’ field. Adjust if necessary.
   
7. Assign Discounts or Credits (optional): If you have any discounts or credits with your vendors, you can apply them here.
   
8. Click ‘Pay Selected Bills’: Once everything looks good, click on this button to pay the selected bill or bills.
   
9. Save and Close: Click on ‘Done’ to close the window after completing your payments.

Note: It’s important to use the “Bill Payment” feature when paying bills entered in QuickBooks, rather than duplicating payments through other means like writing checks.

Remember, entering bills is optional and mainly used for accrual-based businesses or for better tracking of future expenses. Cash-based businesses may opt for alternative methods like bank feeds or directly entering expenses.

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Share with us in the comments below – Are you going to use the “Bill” feature in QuickBooks? 💁🏻‍♀️

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