 QuickBooks Desktop 2023, bills, enter, sort, and pay. Let's do it within 2-its QuickBooks Desktop 2023. 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 QuickBooks Desktop. Get great guitars, practice file. We started up in a prior presentation going through the setup process. We do every time maximize the homepage to the gray area in the view dropdown. We got the hide icon bar open windows list checked off open windows open on the left. Reports drop down company and financial P and L profit and loss change the range of 101, 2, 3, 2, 12, 31, 2, 3. Customize it fonts and numbers. Let's change the font on up to 14 has been our custom. Okay. Yes. Okay. Reports drop down again company and financial this time the balance sheet. And let's go ahead and customize it change that range of 101, 2, 3, 2, 12, 30, 1, 2, 3 and font in numbering changing to 14. Okay. Yes. And okay. That's the setup process that we have been doing every time. We're not going to be entering the month in type of bills like the phone bill the utility bail and so on in a similar fashion as we did at the end of month one except instead of using the check form we're going to enter the bill form which will be increasing the accounts payable. Look at how we might sort those bills and then pay the bills entering a pay bill form. Let's go to the homepage and just give a quick recap on the normal expense cycle that you might have depending on the industry that you are in as well as the size of your company. Note or your business remember that you could when we think about a cash and accrual basis, you kind of want to think about those things as they relate to each cycle. In other words, it's quite possible you might be on more of a cash based system for your payments, your expenses that you're paying while you're on more of an accrual based system for your receivables, possibly because on the receivable side you have you are in an industry that forces you to invoice clients or work at a cash register or invoice clients. But on the on the payment side you might be saying hey look the easiest thing for me to do is set up all my payments to be electronic transfers, for example. And if you could do that as the bills come up paying them with maybe a credit card but hopefully possibly a cash transaction. You can use the bank feeds to record the transactions possibly waiting for something to clear the bank and then recording the transaction after it has cleared the bank with the bank feeds if they're electronic types of transactions. Which remember is not a full service bookkeeping system even a cash based full service system because normally you enter the transactions first and then double check them to the bank with a reconciliation possibly with the help of bank feeds. That gives you a double check on your accounting system but it works quite well due to the security or the speed at which there's a conversion of the transaction with the electronic transactions to basically rely on in essence to transaction clearing the bank before recording them in some cases. And so the next easiest thing that you could do is basically be in a cash based system possibly you're writing some physical checks for example either writing them and then printing them out of the system within QuickBooks or just writing them by hand and entering them into QuickBooks system. In that case you would really want to write the checks and enter them into the system first not wait till they clear the bank because the whole point would be that you want to make sure that you have the record record. If there's a question on the vendor side of things then you're going to say hey look I wrote the check it looks like it's been out it should be there soon. It got lost in the mail and so on those outstanding checks become more and more important given the fact that you've got that time difference between when you write the check and when the check clears the bank. That time difference being a lot smaller when you have electronic transfers that's why the bank feeds and relying on the bank to record them works better and better as that time frame gets shorter in certain cases. Now you also might say well I'm going to enter the bills into the system this is what we will do this time as I get the bills and then I will determine when I want to pay them at a future time. This system works quite well for a couple different reasons. One is that oftentimes you don't want to pay the bill just right when you get the bill because you would like to pay the bill from a cash payment standpoint as late as you can holding on to the cash as long as you can. This is not as relevant for small businesses like if you have the cash flow for example you might say well what's the difference I pay it now or I pay it in 15 days. I'd rather pay it now as they come do just write the check when it comes do or set up an electronic transfer and just pay it as soon as I'm ready to pay it no big deal. But if you have a whole lot of transactions that's why when you get larger companies then it starts to be a bigger deal because holding on to thousands of transactions 15 days longer has a significant cash implication. So the larger the business gets the more likely you're going to want someone to maximize your cash flow by holding on to the money as long as possible paying as late as possible while still paying as least as possible. Meaning taking advantage of any kind of cash discounts you might have and so on. That's one reason you might want to enter the bills. Note that if you're going to pay the bills later entering the bills when you get them is the best accrual component as well. Because for example if you get the utility bill and you wait until you pay it like a month later then you're not entering the expense close to the time that you actually incurred the expense. You incurred the expense and then they billed you. If you enter the bill when you get the bill then you're recording the expense closer to the point in time that you actually incurred the expense even though you had not yet paid for it. It also helps to kind of group all the bills together and then pay them at one time picking which bills you want to pay possibly helping you to sort them. If you're going to be printing checks in the printer because you could sort the bills that way that's one way you can sort the checks and print them all out so that can be a useful process as well. Okay so let's just enter some of these we're going to start off with a Verizon just one quick note here that if you were doing the same process like entering them with a check. And I typed in it was month two now and I typed in Verizon Verizon. It would then memorize the transaction from last time given the settings that I had set up that's in the edit dropdown preferences. It's in the general preferences you have these two options. I put it on automatically recall last transaction that will pull in all the detail including the amount from last time but it'll at least give you the account. Your goal in the future is to be consistent using the same accounts as the past it's still relevant only making changes when necessary so that you have consistency and comparability between the income statement from January to February for example. But we're closing this out and we're doing a new system because we're entering a bill instead of a right check. So we're not going to have that same kind of a pull over right if I enter this I don't see the account popping up because I'm entering a bill instead of a check last month I used to check. So we're going to do it as of 022823 and it's going to be the due amount is going to be 360 and we'll say the bill now when's it going to be due you could use your terms down here and I'm just going to say you know net 30 for the terms. But I clearly the terms are not as easy to use because you because it'll be whatever the bill says right so you're going to say what where's the due date on the bill you want to enter the due date because that'll help you to sort the bills and determine when you need to pay them. You might want to memo for whatever you are paying and the expenses tab this would be to assign it to an account or we can use the items tab if we were purchasing you know inventory. So we're just going to say it's a telephone expense so we're using the same system of if we use the expense last time in a prior month we want to use the same account. If we hadn't used it in the prior month we want to use the accounts that were given to us by QuickBooks when we set up our file and if we don't like that account. But there's one that's similar we want to go into the lists and the in the chart of accounts and change the name so that we don't add a bunch of accounts that are similar. And then if there's nothing that's there at all we can add a new account by going to you know new account as we as we add them here. So we'll keep it on the telephone what's this going to do it's a bill it's going to increase the accounts payable the other side is going to go to the telephone expense. So we'll save it and close it and check it out. I've changed the terms that's OK. Let's go to the balance sheet we can see instead of the checking account going down we've got a liability the bad things going up so instead of the good thing going down cash going down the liabilities going up. There it is the three hundred and sixty looks good closing that out closing this out the other side went to the P and L profit and loss. Let's run it just for the month of of of February. So I'm going to run this from 0 1 let's say 0 2 0 1 2 3 to 0 2 28 2 3. And so now we just got February activity down here and we've got down below there's our telephone there's the three sixty. If I change this back to two thousand twenty two last time we entered a check this time we entered the bill closing this back out. And then we can go back to the balance sheet we can have a sub ledger for the accounts receivable reports drop down vendors and payables. Let's look at the vendor balance detail vendor balance detail. And so now we've got the Verizon down here this is who we owe three thousand seven twenty that ties out to the three thousand seven twenty. We can also sort this information by going to the vendor center under vendors vendor center and then we've got the who we owe the money to. Let's hit the drop down and say vendors with balances. There we have there's Verizon. There's our bill here we can then go to the transactions as well bills we could sort by open bills. There's the open bills that we have as of this time. So let's go back to the home page entering the next one. I'm going to go into intervals and this one is a new one we haven't paid them before so it's spectrum. So I'm going to add the vendor as I go in spectrum and then tab. I'm going to do a quick add because oftentimes I don't need anything but the name that necessary I think to pay them. I do want to make sure that I add the name because I want to be able to sort not just by account but also by vendors. That'll add me more detail in my reports when I'm searching around for stuff one eighty. So this is going to be and again I can say the terms let's say just net thirty although I'd want to use the terms that are on the report. My due date might want to memo for whatever it is I'm I used but I'm just going to say OK this I'm going to imagine this is my my internet connection that I'm paying for. And I've never reported anything so I might try and say OK did QuickBooks give me an account that makes sense. They've got computer and internet expense. So that looks reasonable if I think it's just internet maybe I don't like the computer and internet maybe I just want internet. Then maybe I go in and change the name of this account instead of adding another account which is just internet expense because then I'll have two accounts that will be similar in nature. So I'm going to add that one and let's say OK let's say save it and close it and say yes if I go to the my balance sheet and then double click on the AP the accounts payable. There's the spectrum if I go to the other side of this on the income statement the profit and loss. We can say here's the computer and internet so that looks good on that side as well. Now let's imagine I'm going to say look I got other stuff I would like to have my computer stuff separate than the internet. So what I might do is I might go to list dropdown and let's say chart of accounts and I'm going to say I'm I like this account. I mean I'm going to change it just slightly though so I don't have two accounts that are similar. So we're right there. I just want to make that internet expense right click and I'm going to edit it and say let's keep it but I'm just going to make it internet expense. I think that fits my stuff better and I'll have another computer account or maybe I'll have computer stuff and then use internet and other sub accounts that are related to the computer underneath it. That's another way that you might format your expenses. If I go back on over so now it's adjusted it nicely on the income statement. Let's enter another one. I'm going to go to the home page and let's say another bill and let's say this is going to go to Edison with paid Edison before. But it's not populating in the bill because we paid them with a check before this is going to be 648. Let's just do this net 30 again. So I want to make sure that I pick the same account that we used last time which we used utilities noting that if the if the electric bill because this is the electric bill we're saying is really high. I might want to separate it from the gas bill and the telephone bill for example. But I'm also that adds a lot more detail so maybe I want to group them together or maybe I want to make it like a utilities subgroup and then put the electric bill the gas bill and the telephone underneath the sub the subgroup of utilities. These are some options you can you can work in. There's no correct absolute right way to do it depends on what you think would be best for your internal reporting. So save it. Close it. You've changed it. I'm going to say yeah and then we're going to go balance sheet and then accounts payable boom Edison Bam. And then if I go to the profit and loss we've got the utilities looking there. Notice that you want to make sure that you add the vendor so that you could go into the vendor center and run reports by vendor and also track your activities on who you paid by vendor. And the reason I mentioned that is because if you use bank feeds then it's possible that you just skip you don't add the vendor because it's kind of like in the memo but people sometimes skip adding the vendor. You can still do your books that way but you won't have the detail of being able to track the information by vendor which you could easily do and add and have by copying the information in the memo to the vendor. So now let's imagine that we're going to pay some of these and we can sort for the ones that we need to pay by looking at each vendor. We've got the bills outstanding. We can go to the transactions tab. We can look at the bills and we can see the bills that are outstanding here. That's another way that we could sort which bills that we want to be paying. Imagine obviously we don't have many bills right now but if we had a lot of bills in larger companies people spend there's whole departments that work on management of the payable side of things. And then if I go into the home tab I could go into the pay bills here and we can adjust the due date due on or before. I'm showing all bills. We've got our filtering options up top that can help us to sort our bills if we had a whole bunch of them that we need to sort. But we have only got the four here. I'm going to check off the Verizon and Spectrum. Imagine that we're going to be paying those two bills. So we could go to those bills if I selected them and I wanted to look at the actual bill. If we had discounts and set credits we can go into those options. We don't have those at this time. The date 22823 that looks good. The check form is going to be the form that we want to use although it's going to be a bill check. And notice even if we're doing electronic transfers we still are going to use kind of some kind of check form because the check form is the form that records the reduction in the checking account. So we can say they're to be printed. If we were going to actually have physical checks that we're going to be sending out we could buy the checks we can put them into the printer and then physically print them. Or we might be writing the checks by hand and then want to mirror them in the system in which case we can assign the check number. Or we might do electronic transfers and then we're just mirroring the electronic transfer in that fashion. It's going to be coming out of the checking account. So these are going to create two check transactions decreasing the checking account. The other side go into accounts payable and impacting the sub ledgers by vendor. So we're going to say pay the bills and then we could say we could say let QuickBooks assign the check numbers. Let me assign the check numbers. If they were electronic transfers or I'm matching them out to my checkbook I might want to sign my own check numbers. Otherwise I could say I'll let QuickBooks do it here. And I'll say OK and done. So these are the check numbers that it assigned which should make sense because those are the next check numbers in sequence you would think. In other words if I close this back out and I go into the banking and use register for the check in account. Then you can see these transactions. They're bill checks as opposed to other kind of checks and they assigned the next check number in line which is the next one that you would expect to be there. And but if you're if you're actually handwriting the checks you want to make sure that they line up right. So I'm going to close this back up and then we're going to go then to the balance sheet once again and into the AP the accounts payable double clicking on it. There's my check form if I double click on it then here's the one for spectrum looks like a normal check form except the bottom of it doesn't have the expense and items tab but rather is checking off the bill. That is being paid off with this bill check closing this back out closing this back out the other side of this went to the checking account double clicking the checking account. So there's those two bill check forms which are a little bit different. Here's a normal check if I click on the normal check looks like a check except that down here we got the expense and items and we're applying these specifically out to accounts. And so as opposed to it going to accounts payable. So remember that a paycheck is just a check but it's got the paycheck detail at the bottom the bill payment check is just a check but it's got the bill reference thingy at the bottom. So I'm going to close this back out close this back out back to the accounts payable we can look at the sub ledger vendor balance detail and we can see that we now paid with the bill payment. This is the trend we expect to see in the vendor detail. If we're using bills it goes up with a bill goes down with a basically a check a bill payment check which could be an electronic transfer form as well. That's the form used to decrease the checking account as we see here the 4008 ties out to what's on the balance sheet. We can also see that information on the vendor center vendors and we can say OK we paid off some of these. Let's look at all vendors this time and we paid off like like Edison which ones did we pay. We paid the spectrum. So there we there's the there's the check and there's the bill if I go into the bill notice it says paid now because we paid it. So it gives us a nice little tying together indication there too. If I go into the transactions if I look at the bills there's only two open bills. Here's all bills. Here's the open bills. At this point I can look at the checks if I want to as well down here. So let's go back to the balance sheet. Notice that when I paid the bill there was no impact over here profit and loss on the profit and loss. The profit and loss was impacted on an accrual basis when we entered the bill even though we had not yet paid for the bill. And you can kind of see that if you toggle back and forth between this accrual and cash then it should take away the bill items here that we that we entered into the system doesn't. Well this one we actually paid right. So now I've only see these two entered here that we actually paid. And if I toggle back over here these are the bills that were entered on an accrual basis system just if you want to play with that. If I'm going to cash to an accrual basis notice that I shouldn't be recording anything when I entered the bill I should be recording it when I pay the bill on a cash based system on an accrual basis system it would be when you entered the bill. So you can kind of play with that accrual versus cash and test that stuff out. But in any case that's it. Before the trial balance reports drop down and accounting and taxes trial balance range change 0 1 0 1 2 3 2 12 31 2 3 customizing it fonts and numbers changing the font. Let's bring it on up to 16. OK. Yes. And OK. Now before I do this one more thing I just want to note on your profit and loss you could run a comparative report 0 1 0 1 2 3 2. Let's say 0 2 28 2 3 and start looking at your comparison now that we've entered almost a full second month here and I can show that by saying let's look at the months. So then you got the two months and you know the total for the two months. So this is kind of a nice way to to see it. You can also do the other comparative report you know subtracting out the two if you so choose. So this is one way you can kind of look at your data if you so choose. Here's the trial balance which combines the whole year you have to basically run it for for the years. So here we have it. So if your numbers do not tie out you can change the date range and see if it's a date issue drill down on it and see if you can make the adjustments to make it tie out. We'll be doing a transaction detail report at the end of entering the months to data which hopefully can help us hold them down on any problems by that time.