 0. Accounting software. Bill form. Get ready to be an office hero with 0. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in our personal zero home page. You're going to scroll in just a bit by holding down control scrolling up on the mouse wheel currently at one seven five percent scrolling then opening the demo company selecting the demo company to do so. We will open the major two financial statement reports in new tabs as we do every time right click in the tab up top duplicating it. I'm going to duplicate that tab again right click up top and duplicate again and then I'm going to go to the middle tab. It having been done thinking accounting drop down reports and I'll open the balance sheet which will be in the favorites because everybody should have a balance sheet and their favorite reports next tab to the right. We're going to go into the accounting again reports again this time however we want the income statement the profit and loss the P and the L. I'm going to go back to the balance sheet change the date to a custom date down below we want to have two thousand twenty three for this presentation and I'll say the thirty first that looks good update the report. Okay so now we're focused in on the bill form the bill form will be increasing the accounts payable accounts of the account related to it will be the payable. I'm going to go back to the first tab to consider entering the bill form in more detail let's first just look at the flow in our mind of the bill form. If I look at a flow chart it would look something like this we're going to enter a bill the bill will increase the accounts payable and the other side will then go to some generally expense account. Although it could go to like a fixed asset or something like that and then of course will pay the bill with in essence a check type form a form that will be decreasing the checking account and decreasing the payable. We're going to do that and that will be an accrual process entering a bill is an accrual form as opposed to a cashed based accounting system form. If we were on a cashed based system we would just get the bill from the vendor or supplier and just write a check or make a payment directly on it. So just note the terminology here the bill for our system for accounting system will typically mean that we're entering something into the system that is a form that will increase in the accounts payable and normal kind of language the bill could mean either side of the table you might say that you're bill billing your customers meaning you're charging them or you might say that you've received a bill. But within QuickBooks the bill form when I enter it specifically means that at the end of the day we're paying for goods and supplies as opposed to us billing the customers which would actually be an invoice the invoice represents us billing the customers. That means we're entering the bill not only that but when we receive the bill from a supplier it doesn't mean that we're going to enter it as a bill form because we might pay off the bill that we received in terms of paper or pdf bill by just writing a check or doing an electronic kind of transfer just decreasing the checking account. The bill form specifically means that we're increasing the accounts payable and that then we're going to write the check or paid off with a check form later tracking the accrual account as opposed to a cash based account of accounts payable. And then we also could have the bill enter wind with some more complexity with the inventory where we might have a purchase order that then we're going to receive on it the inventory and then link the bill to the purchase order. We'll talk about that more off more when we get to the purchase order type of stuff. So let's go back on in then and see our items if I hit the drop down. You can see you have the bill here. So if we're paying somebody for goods and services we could send them just spend money right a decrease to the checking account which might be a check or it might be us. Entering an electronic transfer or this might be a form generated from the bank feeds if we're using bank feeds to record a cash based system but an accrual based system would mean that we're entering the bill here. So let's take a look at actual bill. Let's open one up and open the bill and let's say the bill let's just make up of a vendor or supplier as we go. I'm just going to call it an AAA and say it's a new contact. So we made up the contact as we go and the date is November 30th. I'll just keep that as the date the due date. Now the due date on the bill is different from the date it was entered. I'm going to scroll in just a little bit. So the date that we entered into the system is the date of the transaction. So note that if you're talking about something like a utility bill then you might first consume the utilities and then the utility company determines what you consumed and bills you on it. Then you receive the physical bill which you could either just pay electronically at that point with a check so that you don't ever enter the bill into the system as a bill but just pay off the physical bill with a check or you enter it into the system as a bill. If you enter it into the system as a bill this is going to be the date that you typically enter it in the transaction date which is going to be the date that it's recorded as an expense on your financial statements. And then you've got the due date which is going to be the date that you have to pay the actual bill so that's what we're going to need to track and then pay at a future point. A reference number if applicable if we have a file that we need to upload we've got upload your files to store them alongside so we can have that kind of as the backup information and then the total that we're going to pay. Let's just say it's $100 and then it's going to be paid in USD the currency and so we could got the option depending on the capacities of the software you're using to have different currencies. If you're dealing with transactions in different currencies which greatly complicates things but you have possibly the capacity to do that which is nice. So the amounts are no tax they've got the option of tax exclusive tax inclusive no tax. I'm going to say no tax here and then we have the items down below. Now the items are really going to be applicable if we're purchasing say inventory items because the item is going to drive the the accounting of not only the accounts that are going to be impacted from this financial transaction. But tracking the subsidiary stuff will get more into inventory in a future presentation but if you're using a perpetual inventory system you've got to set up those items as a foundational thing. Then you've got the description the quantity the unit price. Now if we don't really have the items but we're paying for something like the utility bill then we can just assign the account over here so we can assign it to an account. I'm going to make up another account just for now obviously if this is a transaction that we did in the past we would want to be using the same account that we're going to be applying it to. I'm going to add a new account here just so we can see it so we can find it in our financial statements and to show that we can add a general alleged account as we go. Now it's useful to kind of see where the numbers are at here so I'm going to try to lie this at the bottom so I'll make it like 850 on the number. So I'm going to say okay 850 new account it's typically going to be an expense type of account on a bill not always but typically I'll make it 850 8000 50 the short name is going to be. Example it's going to be an example expense account expense account just for generic name I'm going to put that as the description tax on purchase I'm going to say that there's no tax. So tax on purchase is zero and so there we have it so let's save it boom so we've got that account and then the region if applicable. We won't get into the regions here I'm just going to say the amount then is going to be the $100 and I put the amount here one and then the $100 so then we have the total. So what will this be doing then it's going to be increasing the accounts payable it's going to increase then the expense account that we set up set up the expense account and. It's always also going to be tracking the outstanding bill for the new vendor or supplier of a that we set up here so let's go ahead and well before we save it let's just note that you could add. Another line so we might have multiple lines here and if we run out of lines then of course we can possibly add lines we have add five lines 10 lines at a time assigned expenses to a customer. So if you select this item you can assign the expense to a customer why would you do that will possibly if you're paying for something and you want to include it on say an invoice that you're going to turn around and create your invoice from it oftentimes used in a job cost system. Then you might use that kind of option as well now most of the time small companies will be just say just go to the approve item here but if you have a more complex structure set up you might save it as a draft. You might save continue editing you might save and submit for approval and save and add save and add another. So if you save it as a draft let's say let's go into save as a draft and then I'm going to go into that will not have an impact on the financial statements yet because it was saved as a draft. So now we can see here that we have the one draft for a a a if I go to the business drop down for example and we go into the pay bills item. This is another area that we can sort sort the bills so we go into here and say I would just like to look at the draft so I'm going to say instead of all I just want to see the drafts and so there's our draft. We also might find that by going to the actual supplier contacts drop down and then going into the suppliers and within the suppliers now we've set up the a a a which we put right on top there which is nice and easy to find. And then we could scroll down here and we've got our bill down here so there it is there. So now let's edit that I'm going to go into it and say let's go and view the bills so that'll take us back into the bill in this format. And now let's say if we saved it from a draft and we said save and continue save and submit for approval. So let's do that save and submit for approval. And now I sort my bills if I go into my drop down and I go into my my pay bills area. I mean I'm in all I hit the drop down there's no more in drafts now we've got the one awaiting for approval so I can go into that item. Here's the item waiting for approval. I could check them off and approve them this way. So that's another way we could do it. Let's go ahead and approve it. And so it's going to say you selected one item to approve. Are you sure I'm going to say approve. And now it's been moved from the approval process and now we've got the awaiting payment. So once it's been approved that means you've actually kind of recorded the bill at that point in time. It still hasn't been paid but now we're sorting and tracking for the payment. So we've recorded a financial transaction when we have approved the bill. So if I go back up top then and go to my my liabilities you might need to refresh the screen. So you might update it as you go in here and then go back down and say hopefully that bill will be reflected in the accounts payable. So if I go into the accounts payable and check it out then scrolling down we've got the bills all the way at the bottom of course because it was in November. So now we've got the payable invoice again that name is a little bit confusing to me. I would think they'd call it like a bill or something. But because again we're using the terminology of an invoice or bill. But as long as you know which side of the table you're on I'm in the I'm in the accounts payable. Therefore the invoice to me means here that I'm going to be I received basically an invoice from the from the supplier. It's a bill it's entering accounts payable. That's the type of form I can see the other side is going to the expense account which is nice here as well I can drill back down into the source document. So if I go into this then it's going to go into that item. So it's viewing the bill now. So here's the actual bill information the 100 price the example expense account and the tax exempt. And then of course we've got the pay bill information on down below. So I'm going to go back then to the detail in the accounts payable go back again to the detail again. Now remember the accounts payable represents us. It's an accrual account representing the fact that we owe vendors or suppliers money. The backup detail related to it we can see as we saw over here sorted by the by the the amounts here for the balance. The I'm sorry the business information into the bills to pay so we could sort them in this fashion. We can also sort them by going to the contacts and go into the suppliers within the contacts and there's going to be our AA contact. If I go into that we've got our information there we have one bill awaiting payment in that format. Then also we have subsidiary reports which should tie it out which should give us a total. So if I go to the last tab over here I'm going to right click on that tab. I'm going to duplicate this tab and let's take a look at the subsidiary report in the accounting drop down reports. And if we say we're going to break out that detail I'm going to scroll down to the payables to the payables and receivables here. And we've got the age payable detail. Let's go into that age payable detail. And this report will give us a little bit more information breaking out how past do things are. Let's make this as of a custom date year end December December 31 update it. So now we've got this information here it is it's it's it's 1 to 30. If I scroll down to the bottom and we get to the total note the total 10,391.84 should tie out to what's on the balance sheet at the 10,391.84. So notify if I just drill down on this it gives us the transactions by date they were entered but I also want to see the transactions by who we owe the money to. And this report over here gives us a little bit more detail because it tells us how old the reports how old the past do the items are. But it also ties out to this number and practice when you're dealing with paying the bills. Most likely you'll be working with these items here in the drop down dashboard the pay bills item here and with the contacts with the suppliers. These two items don't give you that nice total that ties into the balance sheet but you want to understand that's what's happening here. You're looking at the balance sheet is tracking the accounts payable. The accounts payable is being supported by who you owe the money to which is in essence a subsidiary ledger report which should tie out to the same balance by who you owe the money to which in practice you're going to tie everything together with the two formats of the pay bills. The pay bill item and the suppliers item here now obviously the next step in the flow would be for us to pay the bill and so we'll do that we'll see a pain of the bill you know and we'll focus on that transaction in a future presentation. But if I go back to the balance sheet that form will clearly decrease the the accounts payable and then decrease the checking account in this case increase the overdrafted checking account which is why it's over here. In the liabilities and not in an asset so just go to the other side of the bill form went here into the expenses where we put that that new expense. Let's refresh it I need to update update the form scrolling down and then we have the example expense so there's the hundred dollars if I drill down on it take us back to the source document. That's the beauty of of an accounting system of zero because then we can drill back down we can drill back down to the source again I would think would be called the bill form it's called an invoice payable invoice OK same thing you know so just get used to the terminology drill back down onto that and it takes you to the bill that we have entered into place I can go back then to the form or to the to the GL and back here to the expense so note that the expense has been entered on an accrual basis. When we entered the form not when we paid the bill we didn't actually pay the cash we're going to pay the cash in the future when the bill becomes due and we'll see that in a future presentation.