Dec 7, 2017
Posted in QuickBooks
It goes without saying that keeping accurate and timely accounting records is much more than a mere necessity for small businesses to grow and succeed in today’s tough economy and challenging business landscape.
Not only does it lead to proper management of cash flow, but also help owners to gauge the overall financial performance of their ventures. However, it is also a reality that most small business owners and self-employed entrepreneurs find the process of managing bills extremely complicated and time-consuming. Below given is a step-by-step process to help you manage bills easily and effectively:
It is extremely necessary for you to create several accounts where the cash amounts will be recorded so as to use QuickBooks and result from the above transactions fruitfully.
With reference to setting up an expense account, click on Lists and then on the Chart of Accounts section given in the same menu. On the next window, click New, under the Account option.
Click on an expense type of account and click continue, on the new account window menu. Mention the name and description of the account and save it. For instance, you can easily create electricity bill expense account with a concise description: “electricity bill expenses are listed here.”
Depending on your specific requirements, you can set up as many expense accounts. The following is a simplified guide on how you can enter bills into the QuickBooks Online system. Also, there are some jargons mentioned at the end of this blog to help those who are just getting started.
As far as entering accounts payable in QB, all you need to do is:
Once the bills are successfully entered, you can efficiently manage how and when to make payments for them. You can either make payments using the expense form available or by using the ability to print checks from given in the QB application. Also, you can make the payment using vendors/suppliers page.
Bill.com is an excellent option wish to create an auto bill pay method.
Sometimes, you might run out of money by making immediate payments for the bills. For that reason, you can make partial payments if possible to keep your business without any financial crisis.
The first and foremost option is to make payments directly from the suppliers/vendors page:
A/P Aging Detail: The A/P Aging Detail Report displays the entire invoices you have obtained from suppliers as well as the exact amount you owe.
A/P Aging Summary: The A/P Aging Summary Report shows the amount of money you owe for each supplier.
Bill date: Denotes the date on which the particular bill came into effect.
Due date: Denotes the date on which payment should have been made to the supplier.
A/P Graph: This graph shows the Account Payable Aging Summary Report in the form of a pie chart.
Supplier Balance Detail: It highlights what transaction(s) make up your current balance with each supplier.
Suppliers Balances Summary: It highlights the current balance of your business with each supplier.
Pending Bills Detail: It highlights how much you owe each supplier and whether there are any invoices that are past due or not.
Transaction List by Supplier: It shows the number of transactions you have with each of your supplier.
If you any other questions regarding QuickBooks desktop, QuickBooks online or hosting QuickBooks in the cloud, then feel free to ask in the comments.
By Pratibha Maurya Date : Nov 19, 2018
By Pratibha Maurya Date : Nov 13, 2018