Modernize Your Payables with QuickBooks Online

If you don't stay on top of your payables, it can quickly disrupt your cash flow and strain vendor relationships. Tracking bills and expenses on paper makes it easy to miss a payment. And handling one-off purchases often requires extra time spent searching through receipts and statements. QuickBooks Online helps keep everything organized and up to date while reducing manual work. Here's an overview of key QuickBooks Online features for managing vendor transactions, expenses and payments.

Creating Vendor Records

QuickBooks Online lets you add vendor records on the fly when creating transactions. But it's recommended that you set them up early, when you'll be more likely to include additional details you'll need later. To get started, click Create in the upper-left corner, then Add vendor under Vendors.

A panel will slide out from the right, containing all the fields available for a vendor record. The Vendor display name is the only required field. Enter as much as you can now. But you can go back and add more information later if needed. When you're done, click Save.

Once you've created a vendor record and entered transactions, you can view its details as well as the related transactions.

Documenting Expenses

You can manually enter the details of an expense by clicking Create in the upper-left corner, then selecting Expense under Vendors.

There are faster, easier ways to record expenses in QuickBooks Online. You can:

• Upload a file containing a scanned image of the receipt (PDF, PNG, JPEG and HEIC are supported), or
• Snap a photo using your smartphone's camera and the QuickBooks Online mobile app.

QuickBooks Online will "read" the receipt and autofill as many fields as possible in a form on the site. The receipt image will be attached.

Managing Payments

With QuickBooks Online, processing your bills has become more flexible and efficient than ever. You can still write checks or enter credit card numbers offline, then record them and mark them as paid on the site if that's what you prefer. But with Bill Pay Basic now included, you also have the option to automate payments. This added capability can save time, simplify your process and help you stay even more organized.

Bill Pay Basic is a free, entry-level service that lets you pay bills via ACH (bank) or by check through QuickBooks Online. With this free version, you're limited to five ACH payments per month. After that, you'll pay à la carte prices.

Paying 1099 Contractors

Do you use freelancers or independent contractors? You can pay them through QuickBooks Online if you have a subscription to QuickBooks Payroll, a standalone add-on called QuickBooks Contractor Payments, or a subscription to QuickBooks Bill Pay Premium or Elite.

Processing Vendor Credits

A vendor credit in QuickBooks Online is a transaction that records funds a vendor owes your business when items are returned or damaged, or when you're overbilled. QuickBooks Online has a tool for processing vendor credits — however, it's easy to make mistakes that can adversely affect your bookkeeping, so guidance is recommended.

Managing Purchase Orders

If you have vendors that require purchase orders, you can process them in QuickBooks Online. Click Create, then Vendors > Purchase Order. The purchase order's status will be Open. When the vendor accepts it, QuickBooks Online can convert the purchase order into an expense or a bill, whichever is appropriate.

Gain Financial Clarity

Use QuickBooks Online to streamline your processes with detailed accounts payable tracking and reporting. This approach provides a more complete view of your cash flow and overall financial position, helping you stay organized and informed. Contact the office with any questions.