As a business, you have to pay bills to continue operating. QuickBooks can be used to easily keep track of your bills and use that data to effectively run your business. In this episode of MissionBusinessPodcast.com Bernard Roesch shares a workflow you can use to manage all of your bills directly within QuickBooks.
If you have any questions about this podcast episode, please feel free to contact us.
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Receive and Approve Bills
The first step in your accounts payable process is to receive the bills from vendors. These might come electronically or in the mail.
- A simple approval process is helpful at this stage to make sure that the bill is approved before it is entered within QuickBooks.
- This could be a formal process in your office or just you manually reviewing incoming bills before having them get entered in QuickBooks.
Record Bills in QuickBooks
To enter the bill within QuickBooks, you can simply enter it on the vendor’s account with the amount and the due date. If needed, you can enter additional information such as what job or category the bill should be connected to and a memo to guide your bookkeeping and accounting team.
Deciding When to Pay Bills
Once the data is logged within QuickBooks, you can run accounts payable reports to understand which bills need to be paid.
- An accounts payable aging report will show you which bills are becoming due, the amount of those bills, and possibly how far overdue certain bills are.
- This can help you decide which bills to pay based on due dates, cash flow and other factors.
Pay Bills Within QuickBooks
Once you decide which bills you’re going to pay, you can choose those bills and pay all of them at once directly within QuickBooks. You can process the payments directly from QuickBooks or print checks to be mailed.
We Can Help You
Having a clear workflow in place for accounts payable will help you stay on top of which bills need to be paid and also manage cash flow carefully in your business.
If you need support setting up this process or another accounting process within your business, contact Bernard today.
You can also visit MissionBusinessPodcast.com for more insights that Bernard has been sharing with us in the previous episodes.
Need help finding the right QuickBooks software for your business? MISSION Accounting can help.
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