 QuickBooks Online 2023, bills, enter, sort, and pay. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. We also have open the free QuickBooks Online sample company if you want the two open at the same time we suggest using Incognito or another browser. You can open Incognito window if using Google Chrome by selecting the three dots in the browser and open the Incognito window then type into the search engine, QuickBooks Online Test Drive. We're gonna be used the sample company to compare the accounting view, the one that Get Great Guitars is in and the business view, the view the sample company is currently in. You can change between the two by going to the cog up top and switch the view down below. We're gonna now be duplicating some tabs to put reports in by right-clicking the tab up top to duplicate it. We do 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. Do this every time so we're gonna do it fairly fast. Go into the tab up top to duplicate, again right-click duplicate, back to the tab to the middle to go to the reports on the left, opening up one of the favorites, that being the balance sheet. By the way, if you're in the business view, it's located the reports that is in the business overview on the left-hand side and then the reports. Back to the accounting view, tab to the right, opening up the reports again, this time the P and the L. That burger needs to close and then we're gonna change the range from 010123 to 022823 and then we'll hit the dropdown so we can see it on a month-by-month comparison, run it to refresh it. Now we can see the Jan, the Feb, the Tote, the year-to-date. Let's go to the tab to the middle, close up that buggy and change the range, 010123 to 022823 and let's run that one. Okay, so now we're gonna be entering the month-in type of bills that we're gonna pay at the end of the month but this time, instead of using a check form, we're gonna use the bill form. So let's recap the process on our flow charts. We're in the vendor cycle up here in the vendor cycle at the end of the process, at the end of the cycle, we expect cash to be going down in some way, shape or form. Now the easiest way to do that and many small businesses will do it the easy way is that we can just use electronic transfers, for example, to pay bills automatically, possibly the phone bill, the utility bill and whatnot, in which case we're using a check form or an expense type of form, a form that's gonna be decreasing the checking account and we might set up, say, bank feeds in order to automate that process. That's one of the easiest things to automate and so if that's the system we have, that is great. Another system we might be using, which is one that's not dependent on the bank but is still like a cash-based system, is that we just write the check. So if we write and send the check, then we wanna enter the check into the system when we write it, not wait for it to clear the bank because we have that outstanding check kind of thing happening. We wanna be able to see if there's a question whether or not we wrote the check and then whether or not it cleared the bank. With a wire transfer, an electronic transfer, that's not so much of a problem most of the time because the transfer's happening very quickly within a few days, if not shorter than that and therefore you don't have that outstanding kind of problem and therefore the bank feeds are often nice to use. Now notice that you also might have a system where you're using a credit card, same kind of thing, bank feeds set up possibly, use the credit card and then you're paying some of your major expenses automatically with the credit card. You can use the bank feed to enter those with a credit card thing which will increase the credit card liability as opposed to decreasing the checking account. Then the other option we have is to enter the bills as a bill, increase in the accounts payable and then paying the bill. First thing we wanna note is that the bill form is very specific and this is where it's a little bit different, the terminology in the system, QuickBooks versus normal talking terminology differs even from accounting to the software. In accounting terminology, if I was talking about a bill, I might be talking about me billing somebody else, a customer, I might be talking about me receiving a bill that I'm simply gonna pay off with a check. If there's a bill form in QuickBooks, that specifically means I'm gonna enter something that's gonna increase accounts payable. So in other words, I might get a bill from the telephone company and the bill might say invoice on it because from the telephone company side of things, they sent us an invoice. But to us, we might use the term of bill but you can use those terms kind of interchangeably. And then I might take that bill and not enter it as a bill into QuickBooks but pay the bill with a check or expense form. Or I can take the bill or invoice and enter it as a bill form into the system which specifically means accounts payable is gonna go up. Now most of the time people use this bills more as the business gets larger because it becomes more and more important to have a more strict time value of money kind of system set up. In other words, if you pay the utility bill today or you pay it 15 days from now, not a big deal. But if the utility bill was a lot of money, thousands of dollars and or if you had thousands of transactions happening all the time, then that 15 days becomes a big deal for cash management strategy. And that's often when you start to manage companies start to need to manage their accounts payable more in depth and have a whole accounts payable department managing the entering of the bill and deciding the latest point that they can pay the bills without being penalized and without pissing off the vendors because you don't wanna make the business partners, the people you're doing business mad. So, but that's what we're gonna do. We're gonna enter the bills now in a similar fashion as we did last time just to show the process. We'll enter the bills, increase in the accounts payable, the other side go into an expense account typically and then we'll simply pay the bills which is kind of like using a check form or an expense form but we can pay the bills all at one time with the pay bill form. That said, let's do it. Go to the tab to the left. We're gonna hit the plus button. We're on the vendor side of things. We're not gonna do a check. We're not gonna do an expense. We're gonna enter the bill. The bill we got is gonna be entered as a bill instead of paid with an expense or a check form. So the first one's gonna be Verizon. Now note that we had Verizon last time but we paid it off with a check. Therefore, it's not automatically populating anything down below because we're using a different form but if we were using a check form it would probably populate down below. I'm gonna use the terms net 30. Remember that these terms aren't as useful on the bills side of thing because the person setting the terms is Verizon. So I'm gonna have to enter the due date that's on the Verizon bill, not necessarily just depend on it being due in 30 days of course. So this is gonna be, I'm gonna say it's on 022823. So it sets the due date at 330. Again, I wanna make sure that I type the due date based on what's in the bill in practice so that I can sort by when the thing is due to make sure I pay on time. And then down below we're gonna choose the account which is gonna be telephone I'm gonna say. Now we already changed the telephone accounts before so I'm gonna be consistent now to what I did in the prior month to the extent that I can. So if I've already set something up, if I paid it in the prior month, now I want everything that's going to the same vendor to the same account typically. And then the amount we're gonna say is gonna be 360. I'm just making that up. It's not gonna be billable because I'm not gonna tie it into an invoice. I've got no customer because we're not gonna make an invoice out of this one. What's this gonna do? Well it's a bill. That means it's gonna increase the accounts table and the other side's gonna go to the expense account of the telephone. Note that you could buy inventory with a bill but we're just putting it to an account category so we don't need inventory items. Let's go ahead and save it and close it. We could of course cancel, clear, make it reoccurring, save, save and close or save a new, save and schedule. I'm gonna say save and close. Save it and close it. Go into the balance sheet to look at what happened. I'm gonna see what happened and sing it back to you. Why don't sing it? Please, please, here's the bill. There's the bill. If I go into it, we're gonna say there it is. That's what I'm gonna say. And then we're gonna go back on up, back to the balance sheet, take a look, take a trip to the profit loss, to P to the L and in the telephone. That's what we did last month. That's what we did this month. Here's the total year to date so far as we've done. Now we can also have the sub ledger now for the accounts payable, kind of like the accounts receivable. Let's open that up, tap to the right, right click, duplicate, duplicate. And we're gonna go down to the reports on the left and then I'm gonna open up the, let's go to who you owe, who owes you. We're going to who you owe. Let's go to the AP agents. Let's go to the vendor balance detail. Vendor balance detail, let's do that one. And then that looks good. So now we've got vendor, the vendor and Verizon for a total of three, seven, two, zero that we owe. Is that what's tying out over here? That we owe as of three, seven, two, zero. It looks Mui B to the N, tab to the left. We can also check out internally on the expenses side of things. This is like the vendor center and look at our vendors. By the way, if you're in the business view, that's located in the get paid and paid area and then in the vendors down below. So then we can check this out. Now it's not, you don't really need to sort as much by vendor when you're paying like an expense or check form. But when you're dealing with the bills, now you can sort by these open bills up top. And there's the two vendors we have the open bill for. We could schedule a payment and so on and make a payment. You can also sort your bills by, if I go to the expenses, the bills tab here. And so it sorts your bills, unpaid bills is where our focus would often be. You can also go to the expenses up top to sort the bills that have not yet been paid. You can filter perhaps looking at a transaction by the expenses and possibly those on the, on the, I'm not expenses, we want bills. What are you doing? And then we're gonna say we want the open bills and apply it there. That is by the way on the business view that's located in a little bit different place than you might expect. It's under the bookkeeping tab and then transactions up top and then it's under the expenses. That's where that is on that view. All right, let's do another one. Ultra vase plus button drop down and we want the bill once again, another bill and this one's gonna go to spectrum. Now we haven't set up spectrum. That's gonna be our internet provider. We're gonna say spectrum. We'll type it in there. I'm just gonna add the vendor as we go. Notice I don't need a lot of detail on the vendor. I just need the name. I don't need to know who they are. It's just the internet bill. Just tell me who to write the check to and make sure my thing is working. And I don't wanna hear from you other than that spectrum. And then we've got the net 30. Obviously I would wanna set the due date whenever it is due. I'm gonna just keep the net 30 and scroll it on down and this is gonna go to, so now I haven't entered this one before. So I gotta say, okay, who, which accounts are gonna go to? So I would say like a computer maybe and they have one here called internet. I think internet, they used to have one called internet. Well, let's see what they have here under the computer. Say computer and yeah, I don't see one here. So I'm just gonna, I'm gonna make one. So I've looked, I've kind of searched around. I don't see one I like. I saw it there, it was internet. It was internet and TV and it's a sub-account of utilities. Now I don't like that so much because I wouldn't put it under utilities personally. So, but what I'm gonna do is I'm gonna use that one so I don't confuse myself and then I'm gonna go in and adjust it so it's not a sub-account of utilities and I might just call it internet only. So for now, so I'm gonna save tab, tab. I'm gonna say the amount is 1-800-180 and then let's go ahead and save it and close it and then I'm gonna go to the first tab here, open up the hand boogie and go into the register which is under the accounting on the left-hand side and then the chart of accounts. That's what I meant, the register, the chart of accounts. And then over here on the business view, by the way, it's under bookkeeping and chart of accounts. And then there, I'm gonna scroll down to that whole expenses. I'm on the expenses side of things and I wanna look at that, it was under utilities. That's gonna be way at the bottom. Utilities down here is gonna be way down. Here's way too many things involved and so we've got the internet and TV. I want it broken out and I just wanna call it internet. TV is not a business expense. I'm not doing that. That's gonna make the tax, IRS think I'm putting my personal stuff on there or something, not doing that. I'm gonna make it, I'm just gonna make it the category. I'll just bring it up to expenses. So that's just a normal category and then I'll just call it internet, internet, business. For business, just so they know it's a business expense. All right, so then we'll save it. They want a subcategory. I don't wanna do a subcategory, I'll just put it under utilities, boom. Okay, let's check it out and see what happens. K-passo to my balance sheet, scrolling down accounts payable. And there's the spectrum and going to the income statement. And running it, we're gonna scroll down. There we have the interest. We're looking for the internet. So here it is, internet expense, boom. Looks good, sub ledger, running it to refresh it. And now we've got fender and spectrum. There's spectrum total comes out to the three nine which ties out to what is on the accounts payable on the first page, looks good. Let's do it again, back to the first tab. This is gonna be a utility bill one. So I'm just gonna hit the plus button up top. We're gonna go then to our bill form, bill it out. And this one's gonna be for Edison. So we have Edison in there already because we did that last month. I'll just keep the same date. The due date is what we would want to put from the bill. And then I just need to pick the category that we used last time. So I used utilities and I'm gonna use my thought process I typically use utilities for the gas and electric. And then I break out the phone to its own account personally and other stuff to its own account oftentimes. But that's just a convention and it will depend on what you think is important to subcategorize for you. The general idea these days would be the phone bill has become so much that it's kind of its own thing to me and the gas and electric can kind of be grouped together still and that's okay, general. That's how I think of it. But it's not set in stone. There's nothing that's in the stone that you can't move it because the rock is heavy and it's been put in the stone and you don't have any chisels or anything. That's not how it is. You can change it. So I'm gonna go down and say we've got the accounts payable. And so there's now this one that we put in there. Where did it go? Where did it go? Where did, there's Edison. It's right there. What are you blind? You blind, your eyeballs not working today. Let's go to the income statement. My eyeballs are just fine. Thank you very much. Where's, although they are a little red because they've been irritated. I think I need to go on dark mode. I need to run the thing on dark mode. Anyways, here's the utility on this side and then the accounts payable is gonna say Edison has a bill. There's that 4548. That's where we stand now. Back to the first tab ties out looks good. Now, if we were gonna pay these items, of course, now we wanna sort these and see which of them we want to pay. Now, we could sort them multiple different ways as we saw before. I can go to the first tab. What will typically happen is you'll go into possibly the vendor center under the expenses tab and then vendors close this up and you can sort the open bills and see the vendors that have open bills. That's one way that you can do it but you might have one vendor that have multiple bills and so on but you can kind of sort them that way. You can also hitting the hamburger and then going in here, you can have this bills sorting here where you have the unpaid bills. So there's your unpaid bills there. So that's another way that you can sort them. You can also go into the expenses tab and sort them with your filtering options up top as we did with the bills and the open bills. And when you actually pay them with the pay bill function, that's another kind of sorting tool in and of itself. So I can hit the plus button. We can go into the pay bills. Pay bills is in essence another way, another kind of check form, expense form, check form, pay bill form, same kind of thing. They all decrease the checking account but they have a specific term, pay bill means the other side's gonna decrease the accounts payable. So let's go into the pay bill. So we have the setup. It's gonna come out of the checking account because it's gonna basically make a check form. So we'll say that's good. This is gonna happen as of 022823 again and the starting check date or amount will keep as that. So that looks good because that should line up properly if we're doing checks. If we're not doing checks, I can delete that. If we're gonna print the checks, then I can set the first check number. I can say print the checks and then I can print multiple checks at one time feeding those checks into the printer and printing them at one time. So those are our options there and then I can choose which of these I want to sort. Again, I can filter. I have my filtering options up top. I can sort by payee. I can sort by due date which is clearly obviously one of the most common ways to sort by balance and decide which ones I want to pay. I'm gonna choose that I'm gonna pay these two. By the way, you could sort multiple items. I can hold down control or shift and pick all of them at one time or I can use this thing to pick all of them at one time. I'm gonna pick just the bottom two down below and choose those to be paid. This is the open balance. This is the credit applied, if any, if there were one and the payment. This is the payment that we're gonna make if you wanted to pay something other than the total then you can. There would still be an outstanding balance due on the bill in that case. What's this going to do? It's gonna create two transactions, two checks or you could, an equivalent of like an expense type of form if you didn't have a check number in essence up top. And so it's gonna make two of those checks and both of those are gonna be, so two transactions with two forms in essence that are gonna be decreasing the accounts payable and the other side's gonna be decreasing the checking account. All right, let's do it. We can cancel down here. We can save and close or we can save and print, save and schedule payment online. So I'm gonna save it and close it and then we'll check it out. Go to the balance sheet to check those balances and then we'll go into the cash account, clicking on the cash to do so and now you've got the bill payment check. So it's another check kind of form. There decreases to the checking account but they're different in name than a check form or an expense form. So it's just another type of check but it tells you specifically the other side's gonna go to the accounts payable and if it goes to the accounts payable then that means you don't really know what you paid for in terms of expense category. You're gonna have to go to the bill to figure out that. So I could do that by drilling down on this item. That takes us to the bill payment but it only has the one bill down here that's tied and then I could go to the actual bill and say what did I actually buy with the bill? It went to Verizon and it was for telephone expense. This has been paid. It's now linked to the payment that's been made, to the bill payment and everything is good. We have the other one down here doing the same dang thing. So let's go back up top. I had to say dang because it sounded cool. Hopefully that wasn't offensive or anything, it was a requirement. So we're gonna go down and we're gonna say accounts payable. We also have this one. So notice the accounts payable. This is what happens all the time. It's gonna go up with the bill. It's gonna go down with a bill payment, a check type of form. Those are the only forms that we expect to see in the AP. So there's that. Then we should be able to take and tie everything off. Tick, tie, tick, tie or tick, tie. And then I'm gonna say, all right, let's go to nothing happened to the income statement from that transaction. Nothing new under the view of the profit and loss because we hit the income statement when we entered the bill, not when we paid the bill. And then in the trustee vendor balance over here, we only have these two outstanding, still 4,008 now tying out to what's on the balance sheet in the AP, that looks good. And then if I go to the first tab, now I'm looking at the expenses area. And we can see now if I look at the bills, I can see the open bills are now here. Now that I refresh it, and then I can look at the closed bills or the paid items, the paid items open. I have to apply it. You have to hit apply. And there's the ones that are paid. And then I can go into my expenses here. I can go into my vendors if I want and close this up. Now I only have two that have the open bills. So if I go into those two, Edison and Fender, if I remove that and go into one that was paid, like a spectrum, we paid that one. Now we've got on the side, we've got the bill that was entered. If I go into the bill now, we've got that nice linkage saying it's paid. It's got the link here to the pay item, closing that out. And if I go into the bill, then of course, I mean the bill payment, then I've got that entered and that's linked back to the bill. So it's nice and everything's all linked up from the bookkeeping side of things. I can see what's going on pretty clearly in any one particular section. Let's go ahead and run a trial balance now and see where we stand. Go into the tab to the right to do so, open up the boogie and then we'll go to the reports and type in trial balance, because that's what we're looking for. It's useful to type in the words to the thing that you're trying to find in the search engine. So I'm gonna go from 010123 to 022823 and then we'll change it to months and run it. And this is where I'm standing on the four legs of the January, February debit credit, debit credit. So we're moving like a gazelle in terms of pace of speed. And so if you're tying out to what we have great, if not, then try expanding the date range because sometimes it's a date range thing and we'll be doing a transaction detail report at the end of the month data input to further drill down on any differences.