Adding a bill or not?

stevehere · ‎February 26, 2022

We have a small land buying company and I am trying to understand the QB accounting and get it right.
If I buy a piece of land, say land-101 for $5000 am I right in saying I create a bill for that and then add fees that were associated to that transaction?
For example, the $5000 purchase price will have closing fees with it. Are they expenses?
If after a few days/weeks I have to write a check to say a HOA, is that an addition to those fees or does the check provide the expense part?
Surely, I would not write a check and add an expense?

Thank you

MariaSoledadG · ‎February 26, 2022

I'll share some information and guide as to when you'll have to enter a bill or write check, stevehere.

Both bills and write checks are expense transactions. You'll want to either enter a bill or write a check to enter expense transactions. Usually, bills recorded in QuickBooks can be marked as paid when payments are entered. To enter a bill, follow the steps below:

Go to the Vendors menu, then select Enter Bills.
Select a vendor from the dropdown, then fill out the required fields such as the Date, Amount, and Due Date.
Select the type of bill you want to record:
Click Save to record the bill.

Once done, pay bills to settle your payables in QuickBooks Desktop. Please know that when you pay a bill, don't write a check. If you do, the bills remain open and unpaid which leads to inaccurate financial reports.

However, if don't want to enter a bill, you can write checks instead. Here's how:

Go to the Banking menu, select Write Checks.
Enter either as an expense or items.

Also, you can add the fees associated with your transactions when creating a bill. Please read this article for more information: Bills Shows As Unpaid After Writing A Check In QuickBooks Desktop. In addition, learn how to make matches according to the banking modes you're using: Add and Match Bank Feed Transactions In QuickBooks Desktop.

Reach out to us if you have any concerns about entering a bill or writing checks. We're here to help you all the time.

View solution in original post

MariaSoledadG · ‎February 26, 2022

I'll share some information and guide as to when you'll have to enter a bill or write check, stevehere.

Both bills and write checks are expense transactions. You'll want to either enter a bill or write a check to enter expense transactions. Usually, bills recorded in QuickBooks can be marked as paid when payments are entered. To enter a bill, follow the steps below:

Go to the Vendors menu, then select Enter Bills.
Select a vendor from the dropdown, then fill out the required fields such as the Date, Amount, and Due Date.
Select the type of bill you want to record:
Click Save to record the bill.

Once done, pay bills to settle your payables in QuickBooks Desktop. Please know that when you pay a bill, don't write a check. If you do, the bills remain open and unpaid which leads to inaccurate financial reports.

However, if don't want to enter a bill, you can write checks instead. Here's how:

Go to the Banking menu, select Write Checks.
Enter either as an expense or items.

Also, you can add the fees associated with your transactions when creating a bill. Please read this article for more information: Bills Shows As Unpaid After Writing A Check In QuickBooks Desktop. In addition, learn how to make matches according to the banking modes you're using: Add and Match Bank Feed Transactions In QuickBooks Desktop.

Reach out to us if you have any concerns about entering a bill or writing checks. We're here to help you all the time.

stevehere · ‎February 27, 2022

Thank you so much

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Adding a bill or not?