Difference between recording Bills and Expenses

love hate · ‎April 14, 2019

What is the difference between recording an item as “Expense” or recording it as a “Bill”?

Tx, Love Hate

GeorgiaC · ‎April 03, 2020

Hi Gerry,

Really this is up to you, once you have marked the bill as paid in QuickBooks then this posts the same as an expense transaction does, i.e to the selected expense account and the payment account.

If you have many invoices and would find it easier to keep track of unpaid invoices in QuickBooks, then we'd suggest upgrading as there are reports for 'Unpaid Bills', which can be ordered by the due date, to give an easy overview.

Let us know if you have any queries on this below!

Thanks

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Rustler · ‎April 14, 2019

enter bills is for when you will not pay the bill immediately, if you use enter bills, then use pay bills to pay it and link the payment to the bill

garry clarkson · ‎April 03, 2020

I am getting this.

We are a Community Company (we do not have PAYE employees) so that we have

1. expenses (power, fuel etc) which I pay in 'Expenses'

2. We also have several freelance self-employed people who invoice us for their service such as A films a concert so we pay him his fee (after he invoices us).

Am I right that it would be better for our accounts to create a 'bill' for the freelancers who supply services (such as A's filming) and then pay it once we receive their invoice.

The company has only been up and running 3 weeks (and now all our clients have Covid-closed) but we still need to pay outstanding invoices from our freelancers. We are on Simple Start package (so I can't create a bill). Would I be better of on 'Essentials' in order to track these bills?

Thanking you all in advance.

G

GeorgiaC · ‎April 03, 2020

Hi Gerry,

Really this is up to you, once you have marked the bill as paid in QuickBooks then this posts the same as an expense transaction does, i.e to the selected expense account and the payment account.

If you have many invoices and would find it easier to keep track of unpaid invoices in QuickBooks, then we'd suggest upgrading as there are reports for 'Unpaid Bills', which can be ordered by the due date, to give an easy overview.

Let us know if you have any queries on this below!

Thanks

garry clarkson · ‎April 04, 2020

Cheers that's a great answer. Understood they were both 'expenses' but you are right branching off freelance invoices that we pay to people who do short term work project by project is a really good idea to differentiate them from overhead and revenue expenses. It makes sense. I will consider upgrading.

G

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Difference between recording Bills and Expenses