 and then trying to pay it as late as possible without incurring any fees and being able to take advantage of discounts if you can and without angering the people you're doing business with, your vendors, right? So that would be when you enter a bill. Now when you enter a bill, if you're on an accrual type of system, then the bill form is another term that is different than the term you might hear normally. You might say, I got a bill from the utility company or something like that. If you got a bill from the utility company, then you might just pay the bill with a credit card or with a cash payment. In that case, it's a bill in normal terms, but it's not a bill that you entered into QuickBooks as a bill. Because for QuickBooks, the bill form means that you're increasing accounts payable. So if you got a bill and you paid it with a check or you paid it with an expense form or you paid it with a credit card, you paid the bill, but you didn't enter a bill form into QuickBooks because you didn't go through accounts payable. On the other hand, you might also call that bill from the utility company and invoice. I got invoiced by the utility company. Notice the invoice and the bill are the same type of document. It just depends which side of the table that you're on. So you can actually use them interchangeably in normal context. But when you're entering stuff into the software, the bill means that ultimately you're going to be paying someone else and the bill form more specifically means that you're entering the bill into the system, increasing accounts payable, so that you'll then have to track the stuff that you owe and then pay the accounts payable at a later time. So that's going to be a little bit more complex of a process. And then if you have inventory, then that throws another kind of wrench into the system. So if you have inventory, now you're purchasing, let's say we're going to be purchasing guitars later and we sell guitars. So if we purchase the guitars, we might have a purchase order that we're going to enter into the system. The purchase order is a form that's different in that it doesn't actually have a financial transaction behind it. It's just a request and it's different than what you might think of or we might think of when we order something from Amazon, like I order something if I buy a guitar online, I haven't got it yet, but I have to pay it when I buy it from the online store. Unlike if you have more power as the purchaser in a business situation, if you're purchasing a thousand guitars from China or something, then you might be able to, because they're manufacturing it or whatever, I don't know, then you might be able to request the guitars before you actually pay for them, which would be great. So then you could request the guitars, they ship them, you see if they're good, and then if they meet the qualifications and then you pay for them. So in that situation, the purchase order is the request form. And then when you receive the stuff, then you would enter the bill at that point in time. The bill would come in the box of guitars or whatever, and then you would enter the bill. So those are the different kind of formats. So we'll practice in the first month of data input, or we'll go through all of these forms one by one, and then we'll do a practice problem and look at it more on a cash-based system for the first month and an accrual-based system for the second month. But when you're setting up your system, that's what you want to ask. You want to say, am I on a cash or an accrual basis? Oftentimes you don't have a choice as to be on the cash or an accrual basis because it will be somewhat dependent on the industry that you're in. So you have to say, am I on a cash or an accrual-based system in the industry that I'm in? And then how can I set up my system to be as easy as possible? If I could just pay my bills as they come due by just taking it out of the checking account, then I might just be able to depend on the bank feeds. That would be great. Or depend on the credit card feeds. That would be great. If I'm using checks, then I want to make sure that I do a full service accounting system, enter the checks before they clear the bank so I can track the outstanding amounts. That's the point of the checks. You have to do that for the checks. Or do I need to do the accounts payable process? Now if I see that over here in our system here, notice here's all the forms. If you're on a normal cash-based system and you're doing electronic transfers, you'd be entering expense forms. What do expense forms do from a journal entry standpoint? They increase the expense account typically, although you could be purchasing like equipment or something like that, an asset account. And the other side is going to decrease the checking account typically. A check form, QuickBooks Online differentiates from the expense form. They're going to be similar, except that the check form has a check number on it that will be dealing with it, but the journal entry will in essence be the same. The bill is going to be the form that specifically means that you're increasing accounts payable. It's not coming out of the checking account. It will be coming out of the checking account later when you pay off the accounts payable, but the bill for the purpose of QuickBooks means we're going to pay something, but we're going to pay for it in the future. The pay bills is a specific form that's basically just another type of check or expense form, meaning it's going to decrease the checking account, but it's going to be specific to paying off the bill form. And that'll give you like an added piece of information that's kind of a check that was used to pay off the bill form. And we'll talk about each of these forms in more detail in future presentation. The purchase order is that request type of form. And then we have these forms that we'll also talk about a little bit more detail later, a vendor credit, a credit card credit. And then when we print the checks, if you enter checks, then you'd have to print the checks. And then we have an add. You can add a vendor down below. So we'll take a look at each of these forms in more detail. We'll analyze the journal entries and we'll look at the impact of those journal entries on the financial statements.