 QuickBooks Online, pay bills form. Get ready to start moving on up with QuickBooks Online. We're gonna be using the free QuickBooks Online Test Drive searching in our search engine for QuickBooks Online Test Drive. We're gonna be selecting the option that has Intuit.com within it, Intuit being the owner of QuickBooks, selecting the United States version and verifying that we're not a robot. Scrolling in a bit, holding down control up on the scroll wheel. I'm currently at 125% on the zoom in, noting that if we hit the cog up top, we're in the business view, not, I mean, sorry, we're in the accountant view, not the business view. We will be toggling back and forth between them periodically as we go. We're gonna open two more tabs or duplicate those tabs to put reports in the major financial statement reports as we do every time. Right click in the tab up top to duplicate it. As that is thinking, I'm gonna right click again and duplicate again. Then as that is thinking, I'm gonna go to the middle tab, go to the reports, which under the accountant view is on the left-hand side, and then balance sheet should be one of our favorites. As that's thinking, I'm gonna go to the tab to the right, reports, and then I'm gonna be choosing the income statement or profit and loss report. This is our major two financial statement reports. So I'm gonna scroll up, change the date range. I'm gonna do it manually by highlighting the date and then putting in 010122, which is January 1st, 2022, as easily typed as possible, tab, and then 123122, which stands for December 31st, 2022, and tab. It populates then the dashes and we're gonna run that report. Then I'm gonna go back to the middle tab and scroll up to where the dates are. Do the same thing from 010122 tab, 123122 tab, run the report to make sure it is updated. So that's the setup process we do every time. I'm gonna go back to the first tab now. If I select the plus dropdown, this is gonna give us the major forms broken out by cycle. We've been looking at the vendor cycle, remembering that vendors specifically for the accounting terminology means that people that we are paying, money ultimately going out for goods and services that we are purchasing. We could do that on a cash-based system as we purchase goods and services paying with a expense or check form. These basically being two like forms that are decreasing the checking account or we could do the accrual process which we started with this time, entering a bill and then we're gonna be paying the bill. So we entered a bill last time but let's just recap and enter the bill again. Now note that I've logged out of the sample file and back into it. So it shouldn't save my data and most likely won't save my data as I log out and back into it. So we should have a fresh set every time we start a new presentation in general. So I'm gonna go into a bill, let's enter a bill and then follow it through the process of paying the bill. When we pay the bill, we are in essence just paying it with like a check form but it will be marked off especially within the QuickBooks system and it'll show like in our data in our transaction reports. Let's check it out. Let's enter a bill. So I'm gonna enter the bill again and repeat of what we did last time or a similar process. I'm gonna say this is gonna be AAA. I'm gonna create a new vendor as we go and tab. It's gonna ask me to create it. I'm just gonna say that's all I need on the name. So let's save that. And then the address, I'm not gonna put anything different there. The terms, I'm gonna say our net 15. That means the date that I'm entering the bill is here. I'm just gonna keep that date and then I'm gonna say it's gonna be due on 15 days later. Obviously, if you had the bill you wanna make sure that you enter the date for the due date of the bill so you could sort by due date. And that's what we're gonna do when we pay the bill shortly. We're not gonna add any tags. And then we have our categories down below of either an expense item, assigning it to an account, usually an expense account but possibly a fixed asset account here or an item which is typically inventory. I'm not gonna deal with the inventory now. We're gonna just assign it to an account. Let's just say it was like the telephone bill. I'm gonna start typing in telephone bill. It will start to populate if we have our chart of accounts set up properly. Also, we could set up a system where it could kind of memorize the last transactions in which case it might populate the category for us automatically. We might put a memo, such as this is for the week ended, blah, blah, right? And might put a date there to give us more detail of the period that was covered that we paid with this particular bill. That's not a required field clearly, but good one to have. And then I'm just gonna make it for like $350. The billable item means that we might pull it over if I hit the billable item, then I can pull this over possibly to an invoice. We'll talk about the billable items later. The tax would only be applicable if it were billable because we're talking sales tax, generally at least in the United States. And then the customer would only be necessary if once again, you made the item billable. Remember, you could have multiple lines here as well that we talked about last time. What's this going to do? It's going to be increasing the accounts payable. That's what a bill does. So we'll increase the accounts payable. The other side is gonna go to the telephone expense. So we'll do that as of 12, 20, okay? So let's go ahead and record it. So I'm just gonna say drop down or rise up, save and close and let's check out what happened. Just to verify, go into our reports. Every time I record something, I like to go over here and just double check that it did what I think it should. Now over here, I'm gonna close the hamburger. I'm gonna scroll back up top and run the report again to refresh the report, to have it up to date. And then I'm gonna scroll down and say that should have increased the AP accounts payable. I can drill back down from the end result to the source document, selecting this item and then scrolling down, there's the bill. I can then click on this by scroll back down. I can see the 350. I can click on this and go into the actual source document that we data input, which was the bill, closing that back out. Notice we also see a list of the transaction type. This is quite useful when you're analyzing the reports. You can see it's a bill form. I know what bill forms do. They increase accounts payable and then they have an other side to them, typically an expense account, but possibly a fixed asset or inventory account depending on the circumstances. But what I know for sure, hold on a second, closing this out, scrolling back up. I gotta go back this way, going back to my report. I know for sure that accounts payable is gonna go up with the bill, what I was trying to say. The other side's on the income statement. So I'm gonna go to the income statement tab to the right and then run it, close the hamburger and then scroll down. And we're gonna say it went to that telephone expense down here, we put it somewhere in the telephone. Scroll up a little bit. Where's the telephone? There it is, they put it under utilities on the telephone. Okay, I wouldn't do that normally, but there it is. Let's go into there, so there we have it. And then again, we can drill back down to the source document. So two accounts are impacted. At least two accounts will be impacted every time we enter one of these forms typically because these are financial transactions. I'm gonna go back, remember I'm using this back button up top as opposed to this back button. You might be able to use this one, but with QuickBooks, they basically have everything kind of inside the system. So you're usually better off not going to the browser back button, but finding out how to maneuver within the actual website design of the website. Although again, sometimes you might find a use for that back button, but I find that they have everything kind of built into the system here. Okay, so then if I go back to the balance sheet, then in scroll up, we also have the subsidiary ledger for the accounts payable. That represents who we owe money to. We also wanna know who we owe that money to. Now we could do this in a report format and that helps us to see the total tying out to this number. Seeing that it is a subsidiary ledger. In other words, if I go to this tab to the right, right click on it, I'm gonna duplicate it again to open another report. So I'm gonna open it up again and then I'm gonna go down to the reports and we're gonna go then, I'll close the hamburger and scroll down to the reports for you owe, what you owe type of item. And then last time we looked at the accounts payable aging. Let's this time look at the vendor balance detail report, which is a similar report to the aging. We looked at it in a prior presentation, changing the dates. It's got all dates. That should be good. So we'll keep it there. And then we're gonna say that, so we've got, there is the total for AAA that we entered into the system. And here's the 350 up top. Now, if we go all the way to the bottom of this is breaking this information out by vendor and we've got the total 195267. That amount should tie out to what's on the balance sheet, 195267. So we can break this out. We gotta break it out by who we owe the money to. Now in practice, oftentimes we're gonna be going to the internal reporting components to the left-hand side here. I'm gonna scroll back down a bit to 125. And we're gonna go then to the expenses area. This is in the accounting view. If we go into the expenses tab on the left-hand side and then we can go into the expenses, the bills and the vendors up top. So oftentimes we're gonna go into here and be searching for those outstanding bills. So I'm gonna hold down, I'm gonna, sorry, I'm gonna close the hamburger. So you could go to the expenses tab here, which have basically transactions that are related to us paying the pain of the vendors, the vendor cycle or the money out cycle at the end of the cycle. And you could filter within here and say that you wanna go to the bills, for example, and then you could go to the open bills and you could check the date range. You also have the overdue bills and so on and apply this. You could sort by bills or you could of course go just simply to the bills tab, which kind of takes you directly to, I'm gonna go to, now I'm in the bills tab, I'm gonna go to the unpaid items. So now we're in the unpaid bills directly. So there's a similarity between these items here. There's the AAA and the bills on the unpaid bills where we've got this item down here. You could change the sort range if you so choose and kind of sort which bills you need to be paid and you got the paid items. If we're sorting by an individual like vendor, then we can go into the vendor. And in here, you also have another kind of sorting option where you could say, hey, I wanna look at the open bills, for example, and then now you've got the broken out by the vendors. And this is another way that you can sort for pretty much the same kind of data. We have the option on the right-hand side to make a payment now, create a bill and create an expense. So if I go into the AAA here, now I'm into this particular vendor, I see the detail down below, which is the bill. So this is the bill for that particular vendor. If I hit the dropdown once again, I can mark as paid, view, edit and copy. If I wanna go back, notice I have two hamburgers up top. I've got this one, which is the main hamburger. And then I've got like this little mini hamburger. So I can go to that one and I could go like back to the vendors here. So you kinda wanna practice your navigation around in that area. So the next step in the process then would be to pay the bill. Now notice the little plus button is up here. So I could hit the plus button this way now and I could go down to the pay bills or I could go into this individual if I'm looking at a particular vendor and I can hit the dropdown here and I can say that I want to make a payment, make payment and then it goes into the bill payment. And this way it kind of refines down our choices in the bill payment form to this particular vendor that we're paying. Now oftentimes we might be looking at all the bills that are kind of outstanding in selecting the bills that we want to pay. So we might be doing something more like I'm gonna go to my, let's go back to like my bills, my open bills here and then unpaid. I might be trying to sort all of my open bills here and then figuring out which ones I want to pay which might be like the overdue bills, right? Periodically, we might be doing that. And the other way that we can kind of see this if I wanna make multiple, pay multiple bills at one time instead of entering them one at a time, I can hit the dropdown on the plus button again and we could say that we want to pay bills. So we're gonna say pay bills. Now it's gonna open up another screen that is a pay bills screen but it's not just selecting one bill down below. We now have multiple items that we could check off and be entering the transactions to paying multiple bills at one time. So this, if we look at this form, it's gonna be in essence a check type of form but it might make multiple check or expense type of forms at the same time or a credit card form depending on whether you're paying with credit card or a bank account. So you got your payment account up top which you could often, you would use your checking account most likely or you might have a credit card account if it was a checking account and then clearly the checking account would be going down like a check type form or expense form. It was, if it was a credit card account that you are using then you're gonna, it's gonna have the same decrease to the accounts payable but the other side's gonna increase the liability of the credit card. So let's go to the standard kind of checking account and let's say that we make the payment, we'll say 12, 20, that's fine. It's gonna have a check date. Now, if you don't have checks that you're actually printing and you're basically recording electronic transfers or something like that, then you could simply delete the check number. If you are printing the checks and you want to actually print the checks. So in other words, if you actually are using checks, you might hand write the checks in the small business for example, and then you would want to mirror the check number adding the check number here or you could buy checks from the bank which are still gonna be pre-printed and then you're gonna have to print on them, you know, the added information for the check but the check numbers will already be on the pre-printed checks and then you're gonna put them into the printer. So you're gonna want the check number here to line up and then you're gonna mark it off as to be printed later and then go through the printing process of the checks. Now, I'm gonna assume that we're not going to be printing them and we're not gonna have a check number so it's more like an expense type of form. And then we could select, say we're gonna pick the AAA and so now we've got the 350. We could select multiple of these items. Let's just select a couple of them here. And so if notice that if I was to only pay a partial amount of it, then I can show the partial amount of the payment that we're gonna have. And then of course we would still have an amount that would still be due. So if I put like 500 here, we have the opening balance 755, 500 and then we would still be owing the difference. And then here I'm gonna be paying off the full 350. Now these are going to two different vendors. So this is gonna not be like one transaction. I'm creating in essence two forms at the same time, two pay bill forms, two forms that are similar to check forms or expense type forms, but they're gonna be specifically tagged as like a pay bill type of form, which gives us a little bit more detail when we sort for the data because it allows us to know that the other side is decreasing the accounts payable. That's what a pay bill form does. What does the pay bill form do? It decreases the accounts payable and the other side is usually going to the checking account or some kind of cash account or credit card account. So down here we've got the account balance. So that looks good. So let's go ahead and record it and then we'll check it out. So I'm gonna say save it. Let's say save and close. And then let's look at our financial statements. So I go back to the financials. I gotta scroll up and make sure that I run the report again, refreshing it, holding down control, scrolling up a bit. If I go into the checking account, drilling down on the checking account, using the zoom feature, whatever they wanna call it, holding control, scrolling down a bit. So I'm not 125. And then I'm gonna go down and here's the bill payments. We've got two bill payments that we made, two separate transactions, even though we did them basically at the same time. Let's follow this one and then scroll down into the source document. So now we've got the bill payment form. It doesn't look exactly like the data input screen because now we're just showing just one item that we paid the bill for. So this is in essence basically a check type of form or an expense form, whatever you wanna call it. It's a form that typically decreases the checking account but the other side is always going to the accounts payable. So in other words, if it's a payment of a bill, you can't really see what you bought until you go to the actual bill. I mean, you might be able to know by the vendor but then you have to go to the actual bill to see the expense account that was hit. There's the utility, there's the utility that was paid. Whereas if you were to open up an expense form or check form, then you could go directly to, obviously the expense would be on the form. Closing that out, I'm gonna scroll back up and then go back to the balance sheet and then scroll down to the accounts payable. I'm gonna go into the accounts payable now. Notice that the accounts payable account is different than the cash account. It only goes up with bills and down with bill payment forms which are basically check forms or an expense form, however you wanna think of it. Whereas the cash account has all those different kind of types of transactions. The cash account is unique in that way because the cash account is the lifeblood of the company. All other accounts are gonna be severely limited to the types of transactions in them. The accounts payable only have two in types of transactions typically in them, bills increasing and bill payment which are in essence check forms as you could see here indicated by the check thing there that will be decreasing them. So closing this back out, I'm gonna scroll back on up and go back to our report. Now we can also see this in the detailed report. So I've changed the accounts payable to 110267. If we go to the tab to all the way to the right and I refresh this report and say run it, then the AAA is totally gone up top due to the fact that there's no outstanding bills. Now we might be able to refresh this report to see the detail even though there's a zero balance because the bill went in and was paid but we'll dive into that later. Right now I just wanna point out that the total down here 110267 should tie out to what's on the balance sheet 110267. In practice, we're probably not gonna be looking at the report for the sub ledger but rather trying to organize on the left hand side this information for the expense areas and the bills and whatnot. I'm gonna open up the hamburger and the expenses tab so that we can facilitate the ease of the flow of the transactions, right? But we always wanna note that what we're doing here these open bills are basically tying out to the major balance sheet account of accounts payable. So now if I go to my expenses tab here, for example, I'm gonna close up the hamburger. We can hit the dropdown and we can look at the bills. We can look at all of them and then apply. So there's all the bills which includes that AAA bill and then I can filter them back down to only the open ones which is often what we're looking for. Now that AAA one is gone because we paid it and then I could sort by just the overdue items which are the ones that we really need to pay, you would think, right? And then I can go to the second tab which is kind of filtering that out a little bit more quickly, unpaid items. So now the unpaid items are not including the bill that we put in place. I can go to the vendor themselves. If I go to the vendor tab, I could sort up top for the open bills, for example. But I wanna go into AAA directly here and see the increase and the decrease. So there's the actual check and there's the bill. So bill and then these two are basically tied together. If I go into the bill now opening up the bill, it shows as paid which is nice and you have these nice links. So if I go into here, the date is 1220 amount applied. So then if I close this back out, let's say if I go into that, there's the bill payment. So it links over, which is quite nice. Closing this out. And if I go into the bill payment and I wanna see the connection here, there's the payment. I can tie this to the actual bill. Now notice if you learned accounting by debits and credits and like an accounting school that was teaching just financial accounting, you probably learned debits and credits and you might not have as much of an appreciation for the links between say a bill and a bill payment form cause you're just thinking, well, what's the impact on the financial statements in terms of the creation of the financial statements? Cause that's kind of like the focus oftentimes when you're looking at it from just making the financial statements. But from the bookkeeping accounting side of things, the goal of facilitating the money flow, transactions as easily as possible, that's why you wanna use these forms. You don't wanna just enter a journal entry that would be for the bill increase in accounts payable and the other side going to the expense and then with the check form, you decrease accounts payable and the other side is going to, and you decrease the cash account, right? You don't wanna do it with just journal entry because you need the accounting software to be linking the fact that the bill is now closed and you could actually see it tied together being closed to the actual payment. You would like to be able to drill down from the financial statements down to the source document and if your source document is a check, you would like to further link the check to the bill so you could see what the actual expense account was that was hit, which is on the bill and not on the check. So all these little links from a bookkeeping standpoint, if you've learned stuff from the bookkeeping side of things are things that are natural. You think this is the main thing that the accounting software does, of course, does facilitate transactions, but if you're on the accounting side of things and you learn the debit and credits without learning the bookkeeping, then you're probably just thinking what's the impact on the financial statements and the debits and credits and may not be appreciating enough these little changes in terms of the types of transactions and how all the transactions link together and the importance of having this transaction type here, telling us what kind of transaction we're using and the differences of what those transactions are doing and the capacity to go into these centers over here and organize our data in the event that we have a question from a vendor or something like that so we can easily organize the data to answer the questions as problems arise. And just a quick look at the business view. So if I go to the cog up top and we switched this to the business view, then we have the same kind of activities under the business view, it's just a different kind of location. So if I start over at the get things done which is in essence the homepage, then we've basically been working in the get paid and pay area, which if you think about this as a ribbon, you would think about that possibly as the tab and then these are kind of the groups within here, we're going into the pay area which is kind of like the vendor center kind of area and then you've got your vendors where we see the location we saw under the accounting view and then you've got your bills down here and that's where you have your bills unpaid and the paid items. Now the thing that's a little bit different here is that if you have to go under the bookkeeping down below to get to that expenses area, so if I go to the bookkeeping and then the transactions and then I go to the expenses tab up there, that's where you have this area where you can kind of filter all of the transactions that are kind of like in the vendor cycle. So this is where you've got that nice expenses bills and so on and you could sort them such as sorting the bills and we were sorting the open bills and so on within here. So they kind of broke that one out into its own little area here into the transactions and the bookkeeping tab. But like I say, they should have pretty much the same kind of stuff. It's just where did they put it and it's a surface level changes that we're talking about typically and just the design of things. So don't get frustrated if they switch things up with QuickBooks or if you prefer one view or the other view, you could figure out whichever one you want to use.