Learn how to track bills and record the payments.
In addition to tracking sales, QuickBooks Online makes it easy to record business expenses. Entering your income and expenses gives a more complete picture of your business and profit.
If you plan to pay for the expense in the future, enter it as a bill. You can record bills one at a time or multiple bills for multiple suppliers at once. On the other hand, if you've already paid for a business expense, enter it as an expense. These specific transaction types tell QuickBooks how to record everything. Here's how to enter bills and record payments towards them in QuickBooks.
Step 1: Enter bills into QuickBooks
After you get a bill from a supplier, here's how to record it:
- Select + New.
- Select Bill.
- From the Supplier ▼ dropdown, select a supplier.
- From the Terms ▼ dropdown, select the bill's terms. This is when your supplier expects to be paid.
- Enter the Bill date, Due date, and Bill no. as they're recorded on the bill.
- Enter the bill details in the Category details section. From the Category dropdown, select the expense account you use to track expense transactions. Then enter a description. Tip: You can also enter specific products and services in the Item details section to itemise the bill.
- Enter the Amount and tax.
- If you plan to bill a customer for the expense, select the Billable checkbox and enter their name in the Customer field. Learn more about billable expenses.
- If you are paying the bill using a boleto, fill in the boleto code field. If you export a CNAB file in the future, this will facilitate the process.
- When you're done, select Save and close.
Tip: If you have multiple worksites or business segments, you can also select locations from the Location ▼ dropdown. Learn how to turn on and use location tracking.
Record payments towards bills
There are two ways to record bill payments. Follow the steps in the section depending on if you paid by credit card or with a cheque.