 QuickBooks Online 2023, bill pay form. 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 the Incognito window or another browser. 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. You can open the Incognito window if using Google Chrome by selecting the three dots in the browser, Incognito window, and then selecting in the search engine, QuickBooks Online Test Drive. We're going to use the sample company to compare and contrast the accounting view, the view Get Great Guitars is in, and the business view, the view the sample company is in. If you want to toggle back and forth between the two views, select the cog dropdown and change the view down below. Opening up a couple of reports to put the reports in or tabs to put the reports in, right-click it on the tab up top to duplicate the tab, right-click in the duplicated tab like we do every time to put our two main reports in, that being the balance sheet, the income statement, tab to the middle, reports on the left, opening up the big balance sheet, one of our favs, it's in our favorite reports. By the way, if you're in the business view, it would be in the reports, on the business overview, on the left-hand side, and then the reports on the left. So then I'm going to tab to the right, tab to the right, go to the reports on the left, open up the income statement, the P to the L, profit and the loss, the other favorite, close up the hand boogie, and then do the change of the range. 010123 tab, 123123 tab, run it to refresh it, tab to the middle, back to the balance sheet, close up the boogie, scrolling up, change the range, 010123 tab, 123123 tab, run it to refresh it. That's the setup process that we do every time. We're now going to be looking at a pay bill form. So the pay bill form is the form used to pay off the accounts payable. Now note that in the first month of operations, we're going to do more work and pay things off with a check form and expense forms that we have been using. And the second month, we'll do more on the accounts payable side. So let's just go through the flow chart real quick here. If I look at the flow chart, we're on the payable side of things now. So the vendor cycle, you might call it, this is the desktop flow chart, but we're just looking at a flow chart for the purpose of the flow of the operations. We expect money to be going out at the end of the vendor cycle for goods and services we're going to purchase for use in revenue generation in the company. So there's a couple of ways we can do that. The easiest way and the way oftentimes used by many small businesses is that we just pay the bills as they become due. And remember that term bill is particularly a little bit confusing because the bill that we receive from like a telephone company, for example, might say invoice on it because to them, on their side of the table, if they were using QuickBooks, it would be an invoice. To us, we usually call it a bill. We might say they invoiced us. We could say that too. They billed us in common language. But for QuickBooks, if we got the physical bill or invoice, we can then have entered into the system as a bill, but we don't necessarily have to do that. We could just pay the bill off as we receive it with a check form or an expense form. Now, the easiest way to do that is to set up the bank feeds, for example. And if you have electronic transfers, which is more and more common these days, you can wait till it clears the bank and just pay it off with the expense form using the bank feeds. In other words, you get to rely on the bank given the fact that it doesn't take that long for the check to clear. And so that usually works pretty good for small businesses. As the business grows, it's more and more likely that you might wanna enter the bills into the system as opposed to just paying them when they become due because it becomes more and more important to have a time value of money or management strategy. In other words, if you pay your bill right when they say that you can pay it and you set up your electronic payment, then you might pay it like 15 days early. If it's only $100, not a big deal. But if it was thousands of dollars and you had like tens of thousands of transactions, then it becomes a big deal to pay it 10 days later if you can or take advantage of a 1% cash discount or something like that. And that's when you get full departments that are managing the accounts payable. So again, many small businesses will set up electronic transfers and pay off the bills as they become due either with a check form or an expense form through the bank feeds or they might use a credit card form that they're gonna be paying off, which will do a similar process except it's gonna be increasing a liability. Or you might actually write a physical check. Now, if you write a physical check, you typically don't want to have it wait till it clears the bank to record it because you wanna track the undeposted amount, the unclear transaction. And so if someone calls you and asks you a question about it, you can say, yeah, well, I wrote the check, it's out there, it hasn't cleared yet or it has cleared. So you can't just depend on the bank then and then the full accrual system would be entering the bill into the system. We enter the bill, increase in accounts payable and then we pay the bill with the pay bill form, which is in essence a kind of check form, the check form being the form that decreases the checking account. Now, if I go back on over here, the amount that we have in accounts payable was due to the beginning balance that we put into the system. And so we have a sub ledger related to it. And so let's check that out. I'm gonna go to the tab to the right, right click on it and duplicate it. And let's go to the reports on the left hand side. The reports close up the boogie. I'm gonna scroll down a little bit and then we're going down to who you owe money to, they call it something like. I went too far, you've gone too far this time. What you owe, there it is. Let's go to the accounts payable aging summary. And then we'll say as of the end of the year, we'll say 12, 31, 2, 3 and run it. So in a similar way as the accounts receivable has an aging breaking out by who owes us the money, accounts payable has an aging by who we owe the money to in this case, just one person, the 15,000 sub ledger tying in to what's on the accounts payable. Now of course in practice, when we deal with our vendors as we enter the bills, we're gonna enter the bills as they come in and then we're gonna sort the bills and then pay the bills. So then the question is how do I sort and pay the bills? We can go to the left hand side typically and go into our expenses area. And then we could go to the vendors and there's our vendors. I'm gonna close up the hand boogie. And so the vendors can get quite long because there's a lot of different people that we're paying, but we're often sorting into here for paying off the bills, the open bills. So I can go to the open bills up top and I can see my vendors that I have open bills for. I can go into the vendor and I can see the bill that way and I can schedule a payment here and so on that way. And if I was on the business view, by the way, that is located under the get paid and pay area and then the pay area and the vendors. So you have that. So another way that we can look at it, if I hit the open button here, we've got the expenses tab and then we've got our bills tab here, which is another way that we can sort out our bills. So I'm gonna go to the unpaid bills. So there's our unpaid bill and then the paid bills and then we don't have any yet. And then we can go to the expenses tab as well. And this is where we can filter all of, kind of like the forms in our payment cycle or vendor cycle and I can sort by the bills and then I can see the bills that are either open or paid. So here we've got the bill that is open. So those are the ways that you can kind of get into it. If I was looking at the business view, by the way, that's located a little bit different area in the bookkeeping and then in the transactions up top and then the expenses. Okay, and then of course, when we pay the bill, typically another way that we can sort them is just by the pay bill form. So if I select the plus button up top, we have the expense that, I'm sorry, the bill that is entered and then the pay bills form. So if I go into the pay bills data input form, it's a little bit different than other forms because it'll basically again, have a list of the bills that we can pay and then I can select multiple bills if I wanna pay them at one time, which will create not just one form, but multiple forms. So remember the pay bill form is like a check form. It could be a check or an expense kind of form, but it's gonna show up in the transaction detail as a pay bill form, which gives us a little bit more detail about the transaction just by the name, meaning it's gonna decrease the checking account because it's basically a check type form, but the other side we know is gonna decrease accounts payable as opposed to paying off the telephone or something like that, just by the name of the transaction type. So it's gonna be coming out of the checking account and I'm gonna say the date, let's say is the, I'm gonna say the 28th, let's say 28. And then I'm going to say the check number, we should be on 11, I'm sorry, I'm apologizing to the mic, stop apologizing to the microphone. So we've got the 1,011. The reason it was wrong before is because I changed the check numbers because they were out of order before, so it was taken the next one after the last one I changed, otherwise it would automatically be populating at the right check number. We're not going to print them if we were going to be printing them, we'd put checks into the printer to print them and this is a nice tool to be printing checks. If you're using that method, you would have to buy the checks, preprint, preprinted checks, but then print this information on them, meaning the checks already have a check number on them and you wanna match up the check numbers here to your check numbers and then you can print them. The reason this is nice is you could check off multiple checks in here that are to be printed and basically print them at one time and so on and so then you're gonna select the items, you've got your filtering items if we had any need for some filtering options, the due date and the payee and then or the overdue only and we only have one item in here. So clearly that's not a problem. We could sort this way with the triangle, this way we could sort by these items as well within the triangle and then when we pay them off we can select the whole thing. It'll then put the dollar amount here if we're paying less than that amount we could just populate less than that amount and we'll still have a balance then outstanding. Okay, so let's do it, what's this gonna do? It's gonna decrease the check and account, the other side's gonna decrease the accounts payable and the sub ledger for the vendor of epiphone will decrease as well and so down below we have the option of save, save and print or save and close. We're just gonna do the save and close. Let's do it and then if I go to the middle tab for the balance sheet I think this is all we need. I'm gonna scroll up the checking account should have a decrease now, should have gone down. There it is. Notice it's decreasing with a check type form because that's the form, the form that the generic form you should think of for a decrease the checking account is a check form and then the expense form is kind of a variant of the check form. It's a check form with no number and then the bill payment form is once again a variant of the check form, which could have a number, if it was an electronic transfer then I could just delete the number and it would be like an expense form in essence without a check number on it but it would still be decreasing the checking account but it's special because and just by me knowing it's a bill payment form I know the other side's going to accounts payable and not to an expense account or like a fixed asset account or something like that. Now there's pros and cons to that by the way because remember before we talked about the idea that having everything as a deposit being an increase could be nice because then when I filter I can filter by just my increases. When I have these other forms they give me more information but now when I filter by something that decreases by transaction type I've got to pick up expenses, checks and bill payment these special forms as well. So in other words, there's often a lot of transactions in the checking account and it's often the case where I might have a situation where I want to customize and filter the forms and look for those things that are decreases to the checking account. If I want to look at all decreases now I've got to do the check form and we've got now I have to also include the bill payment check in order to pick them all up and I have to pick up the expense form rather than, rather than and there's going to be more than that when we pay off the sales tax and whatnot rather than all the decreases just being like one kind of form. So there's pros and cons to having that more detail on the transaction types having more different variants in the transaction type because I can always see that added information here too that it's going to accounts payable in the split but in the case if I go up and the other side's going to the A to the P there it is A to the P, movie B to the N and so there it is. So we started here, we decreased it and now it's down to zero if you go into that it'll take you to the form, bill payment form, boom closing that out, scrolling back up and then the sub ledger to the right is now down to zero if I run it again nothing's there because we don't have any AP at the point we'll do more AP in month two back to the first tab if I open up the boogie and go to the expenses and the vendors then if I'm tracking my vendors I'm going to undo this, go down to epiphone so if I go to epiphone, close up the boogie so now we've got the bills that have been entered here's the bill so if I go into that bill I can see that it's been paid the amount has been paid so you got kind of that link I haven't been paid, hold on a sec this isn't the bill, this is the bill payment there's the bill, here's the bill payment linking to the bill and then the actual bill is down here and the bill has been paid that's what I was looking for and there's the link to the payment so that linkage is kind of nice because if you learned accounting in a textbook you probably haven't learned these linkages from the internal bookkeeping side which is useful, the forms kind of being tied together this isn't having an impact on the financial statements but it's important if I was to talk to a vendor to be able to easily kind of look into that bill and say okay, yeah the bill has been paid and when it has been paid now note if I went into the bill payment whenever you see the bill payments you're always going to be thinking okay it's a bill payment that means the other side went to accounts payable which means I don't know what was actually purchased in terms of like expense category so to get to the expense category I've got to go to the actual bill because that's where the actual income statement was hit this went to other miscellaneous because it was the beginning balance so that's going to be that and then so that is that no impact on the income statement because the income statement was impacted when you entered the bill which was in the prior period in this case because it was a beginning balance all right so that looks good let's open up the trial balance to see where we stand I'll just do it in this tab over here open up the boogie reports and then close the boogie and let's type in trial balance so we can find it trial balance there it is I found it and then we're going to go from 010123 to 12312 that's not a 12 there is no 13 in dates and date terms 123123 run it this is where we stand at this point if you're tying out great if not then try expanding the date range and if there's any difference drill down on it and then possibly change the date which is something that's great to do in a practice problem but be careful of doing it in practice we'll do a transaction detail report at the end of entering a month's worth of data which helps us further drill down on any differences