Entering and paying bills

For purchases made on account, entering bills into QuickBooks and paying them a few days before they become due is the best way to manage your cash flow. If you enter bills into QuickBooks as you receive them, you can run reports that will show you which bills are due or are nearly due, so that you can plan ahead and ensure you have sufficient cash on hand to pay them. Unpaid bills are also referred to as accounts payable, or A/P for short. In the following sections, we will first cover how to enter bills, and then we will discuss how to pay a bill in QuickBooks Online (QBO).

Pro Tip: There are a number of apps available to help automate the bill entry process. From the left navigation bar, select Apps. In the search box, type the keywords bill pay, and several options such as Bill Pay for QuickBooks Online and bill.com will display. To learn more about the Intuit Apps marketplace, refer to Chapter 16, Handling Special Transactions in QuickBooks...