 QuickBooks Online 2024, bill forms, enter, sort and pay bill forms, get ready and some coffee because we're getting the business on target with QuickBooks Online 2024. First, a word from our sponsor. Actually, we're sponsoring ourselves on this one because apparently the merchandisers, 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 trust me, I'm an accountant product line. Yeah, it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our Dick Gray Guitars 2024 QuickBooks Online sample company file. We set up in a prior presentation. We're going to be opening up those major financial statement reports like we do every time the reports on the left in the favorites. We're right clicking on that balance sheet and opening in a new tab. Right click it on the profit and loss to open in a new tab. Right click it on the trustee trial balance to open in a new tab. Tabbing to the right closing the hamburger change in the range. We're going from 010124 tab 022824 tab. I'd like to see it on a month by month on the side by side and then we will run it. Let's tab to the right repeat the process hamburger close it changing the ranging 010124 tab 022824 tab month by month breakout and then run it to refresh it again one more time to the right burger needs to be closed and then we'll change the range 010124 tab 022824 tab. We will put it on a month by month side by side running it to refresh it. Let's go back to the balance sheet to discuss the next process. We're going to be imagining we enter the normal bills as of the end of the month bills in this terminology being used as more of a layman's type of terms meaning we're getting bills from the normal monthly cycle such as the telephone bill the utility bill and so on and so forth. Obviously these days more often we might be getting those bills electronically rather than in a paper version and we might be paying them off with the help and the use of the bank feeds. However, we also might be putting them in place in terms of a bill in the system so that we can better sort our bills that being more likely of a process if we're a larger type of company. So last month what we did in the first month of operations is more of a cashed based type of system paying off the bills not with a bill form but rather a check form which is similar to an expense form as they become due. This time we're going to enter them as a bill form which will increase the accounts payable and then pay them off. Let's look at a flow chart just to get a reminder of how this process works. This is a desktop flow chart that we're working using for online purposes because the flow is basically the same for any kind of accounting system. Remember that you can kind of think of each of the cycles as whether they're on a cashed based or a cruel based system. In other words, oftentimes when you hear cash or a cruel based systems people think of the entire bookkeeping system as being on one or the other. But really you can kind of break it down to each of the cycles meaning is the vendor cycle in particular on a cashed based or a cruel based system versus the customer or revenue cycle. Often it will be the case that the revenue cycle will be driven by the type of industry you're in as to whether you're going to be doing a cruel type of things or having a cruel type of accounts such as law firms being required to invoice and then track accounts receivable and accounts receivable is an accrual account. Same thing on the vendor side of things where paying things out of the business. Oftentimes the thing that puts us from a cashed based system to an accrual based system will be the how big the company is and possibly whether or not we track inventory could complicate things as well. But small companies when you pay just your normal bills like the telephone or utility bill might just say hey look I'm just going to wait till that clears the bank and then use the bank feeds to do an electronic type of transfer in order to record the transaction. That's the easiest thing to do and it often works quite well with the outflow on the bill side of things and once you manage your bank feeds you can kind of repeat that process to make it nice simple and easy. We'll talk more about the bank feeds in future presentations in a future course or section on how to set those rules up but the forms will be in essence the same. When you use a bank feed form to pay a bill you're going to be using an expense type of form generally. Now if you get to a larger type of business however oftentimes then you have to do the accrual type of thing entering the bills as actual bills into the system increase in accounts payable instead of just paying them as you get the bill. Why? Because if you have a small transaction meaning if I got a telephone bill for like 70 dollars today and I can pay it today or 15 days from today I might as well pay it today because I just want to get it out of the way. When it comes in I'm just going to pay it I might set up electronic payments to pay it as soon as I can basically just to just to get it done. But when you're a larger business it becomes much more important because you're dealing with larger dollar amount transactions therefore that 15 days could have a cash management impact if it was a large like 10 thousand dollar bill instead of a 75 dollar bill and the number of transactions are often a lot larger as well and therefore if you're doing thousands of 75 dollar transactions then it becomes important. If you talk to a credit card company or something like that they care about how how close they're going to be paying if they can push something out an extra day or get their money a day faster it's going to be worth it if they can apply that to all of their transactions right because they have so many of them. So that's going to be the idea if you work at a larger business you're probably going to be entering the bills more likely and then spending a lot of times in a whole accounts payable sector of the business trying to pay the bills as late as possible while not pissing off the vendors and taking advantage of any kind of cash discounts that may be offered that's the general job there. So quick recap remembering that the bills from and the invoices from normal terminology standpoint are kind of interchangeable because if I say I got the bill from the telephone company I could say I got billed but I can also say I got invoiced from the telephone company the bill that we get from the telephone company might say invoice on it because if they were using QuickBooks they would be invoicing their customer from their side of things and from our side of things we would be getting billed by the client. Now when we get the bill either electronically or paper format of a bill that doesn't mean it's a bill for QuickBooks's purposes because I might not enter a bill even though I got a physical paper bill because I might pay the bill off with a check form. If I pay the bill off with a check form or expense form then I didn't actually enter a bill form into QuickBooks. The bill form for QuickBooks means specifically that accounts payable is going to be going up that's what the bill form does. So that's what we'll do this time we'll enter all the bills and then we'll basically pay them kind of at one time sorting the bills and paying them out to see how that works. All right let's go to the first tab and just run through it we're going to hit the plus button and instead of just paying we got a bill we're imagining we've got these bills instead of just expensing them or waiting until they clear the bank to use an expense form we're going to enter a bill form increase in the accounts payable and then sorting the bills and paying them as we do this. So I'm going to say this is for Verizon you'll recall we had Verizon before but we used a check form or yeah check form to pay it. So if we used the same form then we would have the categories would populate automatically down here so in other words let me just show you that if I close this out and I go to new if we were to use a check form we're not going to enter it but I was to say Verizon boom boom then it may categorize the other goes the telephone bill down below and try to memorize the transaction that's because that's the default settings that are set up and that's usually good because it helps us to be consistent with assigning to the same account although the dollar amount will still will typically need to be changed but I'm going to close this out and not record it because we're using a bill form it's not memorizing the transactions just want to point out that usually in the second month of operations things become easier because it does normally memorize at least the account that it's going to which helps us to be consistent. So we're going to say Verizon Verizon is our telephone company we're going to be paying it as of 0220 let's say 022824 now the due date might be you can put the terms here for like net 15 or something like that but oftentimes the terms are not going to be as useful because you're not the one setting the terms the terms have been set by the vendor typically and so you're probably going to have to manually put in place the due date the due date being important if you're going to sort by due date and try to pay at the last possible time without getting hit with a penalty or something like that so I'm going to tab tab tab tab and then we're going to say it's going to go to the telephone expense telephone the expenses have been set up basically now because we're in the second month of operations things should be getting easier we're going to say it's for 360 I'm not going to make it billable we're not going to be charging an invoice for it so I'm not going to be using these ones noting also that if it was inventory that we purchased we might use a bill to do that if it was inventory we would have the items and be using the items what's this going to do when we well let's just look at the rest of it we can we can cancel we can clear we can make it reoccurring we can save we can save and close save a new and save and schedule a payment if you have the checking account capacity to schedule payments which you could set up if you wanted to but anyways I won't get into that that's the idea what's this going to do I count it's a bill therefore accounts payable is going to go up that's what the bill form does in QuickBooks where's the other side going to go to the expense telephone expense we're going to expense it even though we haven't yet paid it because we're using an accrual account of accounts payable not a cash based thing let's save it and close it stop babbling just do it man you talk too much tap into the right okay we're doing I'm a man of few words just straight action as you can tell we're going to go down here and say boom let's do it let's go into that thing and see what happened so then we've got the 360 if I go into the 360 we can see that we have the bill boom closing that out back to the balance sheet if we go to the income statement and run it we can see of course we have the telephone for the second month the 360 now if we go internally go into the bill internally and manage the vendors now it becomes more important the vendor center becomes more important because now I have to sort and pay the bills so under the expenses I could sort of this way with our bills and filter the bills by the open bills possibly and there's our open bills as of now I can most likely we'll do that in the bills section where we have the unpaid bills versus the paid bills there's our bill again we can sort it here and we can go to the vendors and remembering that vendors is a specific term for quickbooks as well open bills it means people that we're ultimately going to pay for goods and service provided to us although on a broader sense we are vendors because we sell guitars right we sell things therefore we're a guitar vendor but for quickbooks you have to see which side of the table where we are on but in any case that's the Verizon bill boom and we can see the bill and we can then pay it which we will do shortly but let's enter some more bills first you're just a talker man I hate talkers always babbling around okay whatever I'm going to hit the let's do no it's at the plus button and let's say we're going on the vendor we're going to enter another bill accounts payable is going to go up again so we're going to go this is going to be a spectrum we're going to imagine so this is a new vendor we haven't seen spectrum before we're going to imagine they set up our enter our interwebs for the business it's going to be important everything's done on the interwebs probably don't need much more information than the vendor information because I just need to bill them therefore just the name should do I'm going to say okay that's all I need it's all I want to know what do I send the bill to keep them bull so we're going to have to choose a category now because I can't I can't see what I did last time so I'm going to do my normal thing we're going to say okay does QuickBooks have a category for me already I'm going to say internet maybe uh interest interest earned it has internet and tv service as a as a sub account so let's choose that one I might say maybe I don't like that one particularly because I don't like the idea of having tv on it because that doesn't sound very business related I want it to be a business type of account and maybe I don't want it as a subcategory of utilities because remember utilities used to include things like the telephone the tv uh and whatnot but now the telephone's becoming so important you kind of break it out in and of itself same with the internet probably these days you're probably break it out in and of itself as a fairly significant cost that you might not want under under utilities at least that's how I see it so I'm going to say I'm going to change that I'm going to make it 180 so I'm first going to record it but then I'm going to go in here and change that account to make it more of the way I want it to be so I'm not going to add another account that is called internet without the tv and not under utilities why because if I did that it's likely that I'll start recording to both of those accounts and then that'll be ugly they don't have two accounts recording the same stuff to it all right so this is a bill what's it going to do increase the accounts payable the other side's going to go into this internet and tv and then I'm going to adjust that account so let's save it and close it if I go into the balance sheet and we run it running just like four scum I could run like the wind blows you may not think so but I'll tell you what jenna told me to that's why I'll tap to the right and then we're going to say so then down here we've got under utilities we've got this 180 I want to break it out out of under utilities and just have an account called internet and not call it internet and tv so let's go to the first tab and find open up the hamburger we're going to go down to the transactions to do this in the chart of the accounts and let's find that utilities thing going to fix this the same this is not the way it should be so it's going to be way down here it's going to be in the next page don't day for crying out loud to stop we're okay here's the one I'm just going to make it I'm going to edit this one dropping it down edit and then I'm going to say that I don't want it a sub category so I'm going to remove the sub categorization and just put it right under normal expenses that's the tax form here this is where I want to be I want to put it right under just normal expenses this the internet is subordinate subordinate to no one okay so then this was going to be what did I what do I want to put the sub category all right and then I'm going to change the name to internet I'll just call it internet it's it feels like it needs an expense to me although that's kind of redundant but see it just sounds better internet expenses it's just internet I don't know some people will say that's redundant like railroad tracks we already know that the railroad are tracks but I feel like it just sounds better that way so I'm going to save it and then I'm going to go to the income statement and we're going to say there they are the utilities and then the internet expense is down here no that's interest where oh where did they put my expense oh there it is I see it there it's right there boom what are you blind man are you blind kind of not totally yet but it's it's definitely fading okay all right let's do another one let's go to the first tab once again and hit the hand buggy I'm going to say that we want another bill form another ultra vase another time this is going to be Edison we've seen Edison before that's a repeat vendor repeat vendor defender so we're going to say that's going to be a 15 let's say 228 so the due date we would want to take from the actual bill but we're just going to give it the 15 day for this one and if we were entering a check form because we've seen Edison before it would populate the category automatically but we're going to put it under utilities so to me the utilities has been trimmed down to like the gas electric and maybe like trash because those are usually somewhat minor costs that still kind of fit under utilities I don't feel like I really need to break out the maybe the electric versus the gas I can still kind of group them together in one account and I don't really need a parent subsidiary relationship in my case in my thinking I just put them both into utilities but the telephone seems to me isn't even a subsidiary anymore in my mind of the utilities like it was when when I was like growing up because the telephone was you know you had to actually pick up the phone you didn't even have an answering machine and stuff so that and so the phone bill was kind of like part of the utilities but now the phone is like its own thing you know it's like it's going to the phone is going to be it's like bigger than you are really or something so I break it out same with the internet seems to me it's not like it's a phone line anymore it should be in its own spot so so so I feel like QuickBooks default accounts are living in the past man in any case the bill is going to be increasing the accounts payable the other one's going to go right into the utilities let's save it and close it check that one out we're going to go to the balance sheet and we'll say what's happening there yo on the balance sheet why did you say yo what do you mean why did I say yo yo I've we're going into the this one this is going to be the Edison so there we have it Edison then we're going to go back and then on the income statement and we have then utilities boom all right let's go back now we're now let's go to the internal side of things so if I if I go into my expenses the vendor center so now we can sort our bills we can do it in the expense area so there's our open bills we can sort them by the categories we can filter them by date and and so on in the payee if we so choose we're probably more likely to do that in the bills area because that gives us a whole section for bills unpaid versus the paid if we want to sort the bills by anything other than simply the vendors if we want to look at the bills by vendor then we can go into the vendor center here and we can sort un uh open bills and that gives us actually the list of vendors that have unbilled paid bills within them some of the vendors possibly could have in theory multiple bills that are unpaid within them so now of course we would want to sort the bills which again most likely would be done like in the bills area and you try to be paying off the bills most likely sorting by the due date to see when they're due and trying to pay them basically as late as possible is the general theory I also just realized if I go to the balance sheet here and we go into the uh accounts payable this 4548 has a sub ledger now similar to the accounts receivable account because we need to break this information out not simply by date of transaction as is seen in the transaction detail report but rather by who we owe the money to by vendor so we could see that let's just open up that report tabbing to the right right clicking on it duplicating the tab so we can open up a new report to see the sub ledge and then we're going to go down to the reports and all the sub ledges that are tied to the AP accounts payable are typically in the who you owe or what you owe section so the classic just sub ledger just listing out the vendor balance and the detail vendor balance detail we're going to right click and open that actually just I should have just opened I'll just close this I don't need it anymore and then I'm closing the hand buggy and then so so now we see Edison has the bill and fender blah blah and so on and we could see the point is that the total here now broken out by vendor 4548 should tie out to what's on the balance sheet 4548 obviously in practice however we're not going to be running the reports so much as working internally to sort our bills this way which is basically a report because they actually give us the total down here which is night nice which should tie out to what's on our balance sheet but it's just important to note that this is backing up or supporting the accounts payable on the balance sheet so then we can we can schedule a payment and so on but the next step would typically be that we can go to the forms and we enter the bill the next step is to pay bill noting the pay bill form is another kind of check form as is the expense form it's a form that decreases the checking account check form expense form pay bill form they all are like check forms decrease in the checking account however the pay bill form is more specific in that we know the other side is going to go to accounts payable that's what the pay bill form does that's what the pay bill form means accounts payables going down other side going into typically the checking account so checking account going up we're going to do this as of 0 228 24 that's an invalid date poor K okay they won't let me pay bills in the future so that's kind of annoying so for you you would want to have it I'm going to try to change the transactions once I record them this is just one of the issues with trying to do things in a practice problem because the date becomes an issue so if I if I do anything past the current date oh they let me do that let me see 229 there we go they let me do it I don't know what I was doing there's 29 days in 2024 it's a leap year is that what's happening so okay I'll keep it on the 28th though that's good to know we'll keep that in mind when we get to the when we get to the to the adjusting entries all right so we're good to go now this is the check number so if there were checks that we were going to be using either through the printer in which case we would have to have the physical prep checks that we put into the printer and print them and then we could print them later and have them all printed at the same time or we might write physical checks in which case we would write the checks and still be populated in the check numbers if they're not check numbers and you're paying electronically then you can remove the check numbers so that it will be it won't be taking up a check form and that's so that you could do that method all right so then down here we can sort by payee and so on typically we would be sorting by the due date to see which ones we want to pay notice this pay bill form is different than other forms because when I go into it it has multiple transactions you know within it because we're gonna have multiple bills that we can sort if we select the bills more than one bill it's going to create in essence a check form or an expense form for each one of them so it's actually going to create multiple pay bill forms if I select more than one I'm going to imagine we do the spectrum and the Verizon and then we're going to leave the fender and the Edison for later so that means it's going to make two separate forms two separate check forms or bill forms which are like check forms and these forms are going to be decreasing the accounts payable the other side going into or decreasing the checking account decreasing accounts payable decreasing the checking account now notice we're not going to be able to say see in the bill form what we paid for in terms of the account because because that's on the bill meaning the telephone company was paid in the bill the pay bill form is is going to is going to be paying down the vendor but not assigning the actual account let me show you what I mean if we go ahead and we could save and close save and print I'm going to save and close and it should generate those forms if I go to the balance sheet then and we say let's run it we could say okay checking account should be going down so if I go into the checking account we've got a special form now it still says check but the fact that it says it's a pay it's a bill payment means that I already know the other side is going to accounts payable I can see it in the other account over here but it's kind of redundant because I already know that because it's a bill payment form if I go into it then it's going to go into the bill payment form but not with all the bills down below it's only got the one bill related to this one transaction because two transactions were created when we entered this and of course if I want to know the actual account you might say I know the account that was impacted it was Verizon that means the telephone is the thing that we are actually paying for but if I don't know the account because of the vendor I would have to go to the actual bill which is linked here nicely so I could go to the bill and say this is the account that was actually impacted so I have to go to the actual bill to see the account that was impacted otherwise in the bill payment form I'm only going to see the vendor that was paid because the other sides go into accounts payable okay so then also just realize that the and then here's the other one the second one that we made also just just realized it's kind of nice that they break out these separate transactions to different kinds of checks but it's also kind of a pain because if I sort things and filter you most commonly filter by type so if I want to filter by decreases to the checking account I would add a filter by transaction type instead of just being able to use one check though a check form I have to pick up the check form and then I have to pick up the uh payment bill payment form so I'd have to say check I could say check again the bill payment form and so on and so forth so that I get all the decreases that's the downside of having multiple transaction types which are basically just variants of checks I have to sort and note all those so there's pros and cons but there's that the other side I'm going to exit out of this get out of here and then I'm going to go down to the AP accounts payable on the liability side it's down to 4008 and we could see the transaction in accounts payable like they will typically happen accounts payable goes up with bill forms it goes down with the bill payments you should be able to tick and tie these numbers out seeing them increase and decrease unlike the cash account which we know has a whole bunch of different types of transactions only two transactions here in the AP accounts payable bills increase bill payment decrease and so on let's go back if I take a look at the sub ledge and run that one we can see that we have two bill forms still in place that ties out to the 4008 breaking it out by vendor which is on the balance sheet 4008 if I look at the internal documentation opening up the hamburger going into the good old vendor center or expenses center we could see in the bills tab here are the two bills unpaid and here under the paid side are the paid items if we go into the vendors we can sort by the open bills there's the open to two people still have the open bills and we can also look at the past paid individuals which will give us possibly a little bit easier sorting over here to see what has been paid if I go into Verizon we have a nice audit trail here where we have the bill and if I if I click on it we can go into the bill so there's the bill we see it's been paid clearly and we can link it to the payment clicking on the payment if we want and we could see the payment that's connected to the bill if on the other hand I close this out and if I was to go into the payment I could see the payment was clearly made for this bill and if I wanted to see the account that was paid for because I didn't realize it was the telephone company because I'm paying Verizon I can go into it and see the account that was ultimately expensed the telephone expense all right closing this back out all right I think that's it I've been talking too long let's go to the balance sheet and then run it this is where we stand at this point in time income statement we'll run it this is where we stand and then balance sheet on top of the income statement trustee trial balance easiest report to kind of check your numbers this is where we stand here if your numbers tie up to this great if not then try changing the date range might be a date issue we have the assets liabilities equity income and expense starting with the assets cash is an asset accounts receivable inventory investments payment to deposit prepaid insurance furniture and fixture then the accumulated depreciation contra asset related to the furniture and fixture is an asset machinery and equipment and those are the assets what we have the other side of the coin who has claimed to those assets either liabilities or third or equity liabilities include accounts payable the visa company that the bank the the government in terms of sales tax the bank in terms of the loans we took out the government in terms of payroll tax unearned revenue for what we owe customers for prepayments and whatnot and then the equity section opening balance equity of the owner's investment in representing our investment in the company which would be similar to the capital stock in a corporation and the owner's equity representing or similar to the retained earnings for a corporation and then the whole income statement being part of equity broken out in terms of revenue minus expenses or credits minus debits which will result in a net credit balance of net income which will then roll into the owner's equity similar to retained earnings if it was a corporation quickbooks doing that process on a yearly basis so if we change the year 0101 to 5 to 0101 to 5 we can see it happening we can see it rolling in to the owner's equity