 QuickBooks Online 2024, pay bills form, get ready and pack some trail mix because we're hiking on QuickBooks Online, our audit trail to success. Here we are online in our browser searching for QuickBooks Online Test Drive. The primary tool we'll be using for the first part of the course looking for a result that has Intuit.com and the URL Intuit being the owner of QuickBooks, selecting the United States version of the QuickBooks Online Test Drive and confirming that we're not a robot. We're going to duplicate some tabs to put reports in like we do every time. Right-click it on the tab up top so we can duplicate it. As that tab is thinking, I will right-click again and duplicate again. As that tab is thinking, I'm going back to the middle tab, down to the reports on the left, open up one of the favorites, the balance sheet, and then we're going to tab to the right, down to the reports on the left again, and this time open up the other favorite report, the income statement or profit and loss report. That's the setup process we do every time. The first tab is where we're going to be doing our data input and then we'll check the results on the financial statements, which is one of the end goals of our bookkeeping process, the generation, the preparation, the creation of the financial statements and related reports. If I select the dropdown here, you'll recall that we've been focusing in on the vendor cycle. So we have the entire accounting cycle. First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay, whatever, because our merchandise is better than their stupid stuff anyways. Like our crunching numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunching numbers with us, will make you thin, fit, and healthy or anything. However, it does seem like it worked for her. Just saying. So subscribe, hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accounting instruction.com or accounting instruction.thinkific.com that goes around in a circular type of fashion once everything has been set up. And then we can think of the internal cycles within that accounting cycle, one of those being the vendor cycle. You'll recall that if we have a very easy vendor cycle. And just before I get into that, remember that the vendor represents someone that we are paying a vendor in general terms could mean anybody that sells stuff, we could be a vendor. But from the accounting term, we have to think about which side of the table these terms are defining. And for QuickBooks, vendor means that the money is ultimately going out from us to other people that are selling stuff to us. And we're going to be using those goods and services to help us generate revenue is the general idea. So when we're paying for things, then the easiest process would be to use an expense form and electronic payment mainly because you can connect that to the bank feeds these days. And it would be a very quick transaction. And we could possibly rely on the bank feeds to actually record the transaction, which we'll talk more about in future presentations, a still a cashed based system. But one that's a little bit more complex is one that we actually write the checks when we have when they come do with an actual physical check. The reason that's more complicated, even though it's still a cash based system is because it takes more time for the check to clear. So generally, we would not want to rely on the bank feeds, but rather we would want to enter the checks as we write them so we can track the outstanding checks. We are now looking at the accrual process first, which means we entered a bill, we focused on the bill last time, recalling that a bill form is different than an expense form in that the bill form will be increasing accounts payable. That's what a bill form means within QuickBooks. In common parlance, in common terminology, you might call a bill anything that you receive from the phone company or any any other vendor that gives it to you. But unless you pay it with an actual bill form or unless you enter it into QuickBooks with a bill form, then it's not really a bill form for QuickBooks, you would just pay it with a check or you would pay it with an expense form. And remember that the form that you actually receive might say invoice on it, because this is another one of those terms that's interchangeable in normal common language. But with regards to QuickBooks, it's one side of the table. So if the other company, if the utility company was using QuickBooks, they would send us an invoice. The bill that we get would say invoice on it. But to us, it would be a bill. And more specifically, it would not be a bill to us, a bill form. If we paid it off with an expense or check form, it would only be a bill form if we entered it in our system as a bill, which would increase the accounts payable. Once we increase the accounts payable, we then have to track the bills and then pay off the bills. And that's where we are here with a pay bills form. Now you might be thinking, wait a second, isn't this all the same? It's just money coming out of the checking account. We have three forms now showing basically the same thing, an expense form, a check form and a pay bills form are all decreases to the checking account. That's what they do. But they have specific things related to them. The expense form means that it's an electronic transfer and it's probably going to the other side, it's going to go to an expense, most likely a check form has a check number field in it. And then the pay bills forms means it's a decrease to the checking account, but it's also telling you just by the form itself that it's going to be decreasing the accounts payable rather than going to some other expense. Like it's not going to be going to the telephone expense because you hit the telephone expense when we entered the bill and now we're going to be paying off the bill. So it's going to be going to accounts payable. So if we go into, let's go to the balance sheet and I'm going to close the hamburger and let's scroll up a little bit. I'm at 150 on the scrolling and if I go down to the accounts payable and click on it, we can see the detail in the accounts payable. And so now we have what's happening here. It goes up when we enter a bill and it goes down with the pay, the bill payment, which is a pay bill form in essence, which is still a check, but it's a special check which decreases the debt back down. Notice the accounts payable is a much more easy account to track than cash. For example, when we go into the detail, like the general ledger, which this is basically a general ledger, the transaction report, because it only goes up with bills and it goes down with the pay bill. So we should be able to kind of check everything off like this and tie everything out. Let's go back. We also are going to have another report that ties into accounts payable and let's find that I'm going to go to the tab to the right. I'm going to right click on this tab and duplicate it again and then we'll go into the reports again on the left hand side and let's close up the hand boogie and then go down. We're looking who owes you know we're looking for what you owe. And so I'm going to go to the vendor balance detail over here and this will give us the information by vendor. So these are basically the open bills and the point is that the bottom line of that the 1660267 should tie out to what's on the balance sheet. And we can also see that internally if I'm checking these outstanding bills, if I'm going to be using in other words this pay bill form, normally I probably wouldn't just go directly into the pay bill form here, but I might instead be looking for the bills I need to pay in another way first because I might for example close this out and go into my expenses and then I could search for the bills that are open by going to the expenses tab here. I could search here by hitting the drop down and search for my bills and then I could filter and search for status as open so the bills that are open and we're going to say okay and so now we just have the open bills. So I probably might go in here and search the open bills first and get an idea of what I want to do or we might go into the vendors here and we could do a similar process by going into the unpaid items and then we can kind of search by status and we could search by due date and then we could also go into the vendors center and we could see that the we have the overpaid items and then we have all of the open bills. Now when we actually go into the bill the pay bill form however you'll note that we we do have if I hit this plus button and I go to the pay bills we could select multiple bills that we want to pay at one time from this field right so we so that's a great tool because then we can go in here we could sort the bills that need to be paid and pay multiple of them off at one time. Let's first enter a couple bills so that we can see the whole cycle happening so I'm going to say do you want to leave I'm going to say yes. So let's go up to the x the new button and let's enter an expense or I'm sorry a bill let's first start off with a bill and we'll pay off the bills that we actually create here. So once again I'm going to call it vendor one or you can call it like vendor five remember that the this file starts over every time because with every new presentation it's going to delete what I did before because I'm going to read go into the file so if you already have the information from last time you might want to log out and then log back in so that you're back to the starting point so our numbers should match then. So here's our vendor vendor number five let's put it once again in 2024 010424 let's say and then let's say the due date is 0106 let's give it that and no tags and we're going to say that we're going to be purchasing let's just say let's just say the the category that we're going to be putting this into will be let's just call it expense one I'm just going to make a generic expense account and normally when we enter the bill we're going to be paying for some kind of expense like the telephone bill the utility bill and so on and so forth although as we saw before we could be purchasing inventory or we could be purchasing a fixed asset I'm just going to call it other business expense and I'm not going to make it any kind of sub-account if I did versus purchase inventory I'd have to use the items which we talked about last time that's not going to have an impact on the pay bill prop part of the process so I'm not going to focus on that now and let's say this was for 120 we're not going to say it's billable no tax no customer because I'm not thinking about pulling it over into an invoice that's a whole nother kind of thing that we might think about at a future time over we will take a look at it at a future time but that would be if you wanted to pull this over into the invoice so there we have that and so what's this going to do it's going to increase the accounts payable and the other side's going to go to this expense account if I saw that in a journal entry let's just make this was 120 this is just what we did last time it would look like this right so we're going to say okay the fixed the expense it's going to be an expense down here to do and then boom and then accounts payable so accounts payable goes up expenses go up net income is going down I have a negative net income because I have nothing on the income side of the income statement we just have that expense so let's record it and say let's check that out so we'll say save and close save and close it let's go to the balance sheet scroll in a bit and then if I change the date let's bring the dates up to 0 1 0 1 2 4 12 3 1 2 4 and run it to refresh it and then we're going to go down to the AP accounts payable and there is our bill form once again let's go back the other side's on the income statement going to the income statement closing the hand boogie changing the range in 0 1 0 1 2 4 tab 12 31 2 4 tab run it to refresh it there's our expense if I go into the expense I once again see the bill okay let's go back if I go to the tab to the right then refresh this we should see then our our vendor number five and our update of the 1007 2267 tying into what's on the balance sheet 1007 2267 internally if I go to the tab to the left I'm going to scroll down a bit 125 on the zoom in if I go into my expenses here then I can track this by going to my bills tab and I can say okay here's one of the new bill that I put in place we can also see if I go to my vendors over here and I should have then that vendor number five and if I go into vendor number five I see the bill I'm going to close up the hamburger now to pay the bill we could schedule the payment note that if you're going to schedule the payment then you're going to have to set up a payment method pay with bank or card schedule payment using the bank transfer fee and so on and so forth so you'd have to basically set set that up to schedule the payment but we would generally be paying them with the pay bill form notice once again in QuickBooks when I go back I'm not going to use the back arrow usually I'm going to use this item right here which allows us to go back to the vendors and so now we're back into the vendors let's enter another one so that we can just pay a couple of them at the same time so I'll hit the drop down and we're going to go to another bill and I'll just call this vendor vendor number six tab setting it up and then boom boom let's make this on the sixth and let's tab on down and let's just call that item or I just called it expense we'll put that to expense one again and let's say this was for 200 dollars just to change it up we're not going to make it billable and let's do one more and we're going to say save and new this time save and new and we'll call this vendor seven tab enter it boom boom boom and notice when I'm in this bill I'm tabbing through I'm gonna hit the plus button that's a little bit easier hitting the plus button to increase the date I'm tabbing through instead because that'll help me to see every field makes it less likely I skip one expense one I'm using the down arrow to find that trying to do less stuff on the mouse more on the keyboard because that's more like geeky which is the way to this which is usually faster the geeky ways to faster way and so we're going to then say save and close it here and let's check those out so if I go to the balance sheet now and run it to refresh it going into the a to the p a to the p accounts payable there's our three bills going back let's go to the profit and loss run it to refresh it and there's our three expenses are now in this one account because we put them all to that one expense account there's the three bills that are making up that 320 which have already impacted the income statement even though we haven't yet paid it that's why it's an accrual system not a cash based system here the accounts payable by the way is an accrual account if you have an accounts payable you're doing an accrual thing we have deviated from a cash based system so if I go to the tab to the right and run it and then so there's going to be our vendors within here and the total is at 192267 and that ties out to what's on the balance sheet if I go to the tab to the left and I go into my expenses we can we could sort the bills now once again I'm going to close up the hamburger and we can see the outstanding items here and then we could we could pay them so let's actually go to the pay pay bills now so there's multiple ways we can get in there we have the drop down here the pay bills we have this item so we can go into the pay bills we might be able to select by the way if I close that out and I go back in here I'm going to go into my hamburger expenses if you were to group if I wanted to pay these two for example and then I go into my pay bills then yeah I thought it might check them off it doesn't check them off but we still have them within here as well so notice this is another screen that's basically sorting all of the bills that have been entered that have not yet been paid so when we look at this pay bills form this is basically a pay bill data input screen which will actually create or could create multiple pay bill forms because each one of these that we select are going to be another bill that we're going to be paying so let's let's say that we paid if we want to pay these two for example then we can choose the method up top so oftentimes for many people it'd be coming out of the checking account but we could have the savings account or a credit card type of account that it might be paying through let's say the date of payment for us so we're going to put it in the future again so sometime in after these dates let's make it the one nine and then if there are check numbers then we're going to enter the check number here and we'll have to actually print the checks if there are no check numbers then you might not have the check number if you needed the check number to be printed out or you can say print later and then we can go into that area where we saw earlier which was to print which would be to print the checks now to physically print checks you have to actually buy the checks physical checks you can't just print them on a blank piece of paper and put them into the system but oftentimes people might be doing electronic transfers these days so you might be using an electronic transfer when we enter this what's this going to do it's going to be decreasing the checking account that's what a pay bill does and the other side will specifically not be going to any other account other than accounts payable the screen means the other side is going to accounts payable so it's like a check form or it's going to be multiple check forms or expense forms similar right but they're going to be the other side's not going to go to any other account other than accounts payable decrease the checking account the other side goes to accounts payable so if we did it here if I said this was a pay bill form it's basically a check form what would that do from a journal entry standpoint we'd say that it's going to be accounts payable going down and the cash is is going down and these are debits and credits so if you if you and I'll just use the 120 in our example so the cash there's nothing in the cash so in our case cash is going negative and the accounts payable I'm going to say f2 and then say let's do f2 and accounts payable goes back down notice that there was no impact on the income statement any of these accounts in that second transaction so no impact the 120 has already been included and now we're just taking accounts payable back down and cash is going down although it's a little bit more complex over here because we also have the sub ledger we have to deal with meaning tracking the sub ledger by vendor so let's save it and check it check it well hold on a second okay I have saved it let's go ahead and close it now and let's see what happened let's see what happened k-passo what happened let's go to the balance sheet remember to run it to refresh it and then we're going to scroll on down and see what happened we're in the ap the accounts payable and we can see here we entered these bills let's make the if i scroll down a little bit make this little bit wider we entered these bills and then we paid off two of the bills this last one i didn't put a dollar amount in it that's why it was weird i didn't add any dollar amount but any case notice how you can take and tag these off right that's what the accounts payable account will generally look like although it can be quite complex when you have a whole lot of transactions going in and out of the accounts payable you can also see that pattern of it ticking and tying off when we go to the uh the detail account by vendor running to refresh it we can see well here we're only showing the outstanding bills in this particular account we could customize this to see if we can get the uh all of the activity of it increasing and decreasing but let's not dive into that right now let's first go and see the activity by going to the first tab open up the hamburger and then scrolling down to the expenses and then here if i close up the hamburger it was in unpaid and now those items should have moved over to paid now right so now they've moved over to paid that makes sense if we go to the expenses tab note that you could search for this items before we searched for the bills and then the open bills they're no longer in the open bills if i clear that filter then you're going to now that are back here in all bills i could look at the drop down and look at the pay bills form the ones that we paid and there's the pay bills there we can also look at it by vendor and we could sort for the overdue and open items but the ones that we have just paid off we have the paid in the last 30 days it should be in there as well but let's clear the filters and let's look for our vendors here we go let's just look at vendor five we could see the activity so if we talk to the vendor of course we can say there's they're going to say did you pay us we're going to say yeah we entered the bill here and it was paid the pay bill happened at at this time right and if it was a if it was a check then we'd have to see if it cleared or not to see if it cleared the bank feeds but if it was an electronic transfer we could still see if it cleared but it should clear a lot faster that way now just know when you enter the bill another way that you might do this if i if i hit the plus button if we enter a bill here you might think well what happens with the bank feeds what if i what if i'm like pay the bill with the bank feeds and then i just match the the payment uh the payment that comes through the bank uh to the bill form so you could possibly be able to do that it wouldn't be it's not normally the full service bookkeeping system in other words in other words if you're using accounts payable then usually you're going to enter the bill and then pay the bill and use the bank feeds to double check help you with the reconciliation process but you might think it's possible to enter the bill and then you you might search through here and say okay which bills do i need to pay uh the unpaid bills and pay them with an electronic transfer right pay them electronically and then allow the electronic payment to go through the bank feeds right and once that goes through the bank feeds you'll see them in the bank transactions so we'll talk more about this later but you could then go to the transactions and and if i went into my checking account i might see the payment going through here money going out and when i see the money going out i might be able to find a match and see if i can match it up basically to a bill so you could see the bills forms here are one of the things that you can match it to and if you were to do that then you would think QuickBooks would basically enter the transaction of doing the pay bill form so we'll talk more about that when we get to the the bank feed area but again if you're using accounts payable then you're probably going to go through the whole process of bill pay the bill and then match the bill do the bank feeds or use the bank reconciliation process so we'll continue on with more of our journey through the forms and following presentations