3rd party payroll and bills

Thanks for the information, JohnP53. I'm here to share more guidance on how you can track your bills without affecting your accounts in QuickBooks Online. Let me explain this further to you.

For your situation, it's important to divide the particular transaction to ensure the amount is allocated correctly to the appropriate expenses. To achieve this, we'll need to use the Resolve Differences feature so it can allow you to match the bill and fix the payment differences.

Follow the steps below:

1. Go to Bookkeeping, then Transactions.
2. Select Bank transactions.
3. Choose the For Review tab.
4. Find the said transactions, and then select the Find match button to open the Match transactions window.
5. Look for and select the bills to match. You can also use the filters to narrow down your search.
6. Scroll to the bottom of the table, and then click the Resolve Difference button.
7. Enter the difference in the Add Resolving Transactions section. Make sure the total is zero.
8. Click Save when you're ready.

Just in case you want to know more about matching transactions, feel free to check out this article for more guidance: Categorize and match online bank transactions in QuickBooks Online.

Additionally, to learn more about billable expenses check out this article below: Enter billable expenses in QuickBooks Online

Drop your comment anytime below if you still have questions or concerns with expenses. I'm always here for you. Take care and have a good one.

Here is what I am looking at. I see an ACH that that payroll service has taken in my bank feed. I am adding this as an expense. They are taking care of all the taxes and the actual salaries. So I add this transaction into QB. The problem I am having is that some of the salaries are associated with bills that were entered. I am trying to find out how to mark the bill as paid without doubling what checking account the transaction is coming out of. So right now, if I record the expense, then go and mark the bill paid, it takes the amount 2x from my checking account. I am trying to avoid this. Is there a journal entry that I can make to produce a credit and then apply that to the open bill to show it paid without causing anything to be done 2 times?

Allow me to chime into this conversation, John. I'm here to provide additional assistance regarding the added transaction on your bank feed and clear out the associated expenses with that data in QuickBooks Online (QBO). This way, you can categorize the transaction accordingly.

To handle this, the first thing that we need to do is match the bank transaction to the existing bill. Then, manually add the value of the associated expenses to ensure you'll have accurate data linked to the amount.

Here's how:

1. Open your QBO account.
2. Go to the Transactions menu and select Bank transactions.
3. Select the For review tab and choose the said transaction.
4. Tick Match.
5. Click the check box on the bill and toggle Resolve.
   

    

6. On the Add resolving transactions section, manually enter the expenses associated with this amount. Make sure that the amount you've entered is accurate.
7. Press Add new transactions to add a new item line.
8. Once you've added all the expenses linked to the amount, the Difference will be zeroed out.
9. After that, hit Match.

Once matched, the linked bill and expenses on the bank transaction will be categorized accordingly.

Finally, I'm adding this article that can help you get a complete contrast of your business' income and expenses. This way, you can check your company's performance in a given timeframe: Run a Profit and Loss Comparison Report in QuickBooks Online and Online Accountant.

If you have something more to add about your expense transactions in QBO, kindly reply to this thread. I'll be here to assist you. Take care!