How To Enter Bills in QuickBooks Online

hi this is tim yoder with fit small business today i'm going to teach you how to enter your bills in quickbooks online you can find all 46 of our free quickbooks online tutorials by googling fit small business quickbooks online tutorials so today we're going to talk about how to enter bills so first of all let's talk about when it's appropriate to enter a bill generally there's two different ways to handle bills some companies like to pay bills immediately they don't enter the bill into quickbooks online until they're actually ready to write a check in that case there's really no purpose in entering the bill you can simply enter a check directly you'll put the expense information the purchase information directly in the check we've already talked about how to do that if you're doing these tutorials in order that's in our how to write and print checks the second method of handling bills is to enter the bill immediately upon receiving it and then use quickbooks online to help you track the bills you owe and then you'll later pay the bill and that's how i recommend doing it so take advantage of quickbooks's help in tracking your unpaid bills so let's talk about that today how to enter your unpaid bills so let's start at our quickbooks dashboard to enter a bill you're simply going to go to new under vendors click bill okay choose the vendor that you've received a bill from i will say we received a bill from the county of middle field okay all the information flows over from the vendor information you've previously entered you'll want to enter a bill number or an invoice number from the county of middlefield we'll say that's one thousand i always recommend that you put the invoice number or bill number because quickbooks will notify you if you accidentally try to enter the same bill twice so that's very helpful sometimes you know especially from something like county of middle field they may not have an invoice number so you may not be able to do this but anytime practical enter the bill numbers so quickbooks can give you kind of that warning if you try to enter something twice okay so county of middle field we've actually entered a bill from for them before and charged directly to the expense account business licenses and fees and so we're going to do that again that's what we're paying the county of middle field for a hundred dollars but now let's say this is for a very specific customer and so we're going to make this a billable expense and we're going to mark it up 50 okay assume we don't have to collect sales tax on that markup and we're going to bill those business fees to adam and we'll assume this was his project we're working on and we'll give this a i don't know class of exterior okay so this is the first way to enter expenses you can enter them to the category which is just quickbooks is terminology for an expense account so we're we're entering this directly to the category of business licenses and fees and we're charging it after fifty percent markup to adam so let's save and close this bill now let's enter another bill so let's go to new vendors bill and this time i want to purchase inventory so let's see who might i purchase inventory from let's say the electronics manufacturer again all the information flows over automatically we'll say this was bill number 1200 now instead of entering it to a category we're going to enter it as an item detail so as a refresher if you are not familiar with items in our quickbooks tutorials in the second uh part of our part one we have this how to set up products and services list so this will explain to you how you use the product and services list when you should create them and what their purpose is and so here we've already set up our items and pr our items list for products and services and now we're going to use them so essentially you want an item set up for anything that you're going to sell any product you're going to sell or service you're going to sell to your customers and so we're now buying a product that we will eventually sell to our customers so this is inventory so we don't want to use the category details we want to put this under item so let's choose the inventory item that we're purchasing from our electronics manufacturer let's say we're purchasing indoor electrical wire okay so here under quantity if you look quickbooks actually tells you the quantity that you already have on hand is 500 very handy so that's the reason you want to use the item details anytime that you're buying and selling inventory because quickbooks keeps track of the quantity if you use category details there's no way to give them the quantity so and quickbooks knowing the quantity is very important it's not just for your reference it's so that it can charge the correct amount to cost of goods sold when some of your inventory is sold so again extremely important so we're going to say we're purchasing 50 of this indoor electrical wire at 75 cents we're not going to mark it as billable because we're just buying it right now we're not we're not passing it through to a customer it's going to sit in our inventory and we'll eventually sell it to a customer and that's when we'll invoice the customer not at this point so we're going to keep the billable markup all empty all we have to do is give it a class we'll call it bath and vanity okay and that's it so a bill for 37.50 from electronics manufacturer save and close okay so let's look at our unpaid bills i love this report let's go to reports if you scroll down to what you owe here is unpaid bills notice i've clicked the star by clicking the star unpaid bills actually shows up here in my favorites so let's go to our unpaid bills list and there's a couple others than that other than what we just entered but here we have the one we just entered the county of middle field for a hundred dollars and we also have the one to electronics manufacturer for 37.50 okay so i suggest you pay bills maybe once a week look at this unpaid bills list before you make your decisions you can go through here choose which bills need to be paid and very quickly pay them okay when you actually go to pay the bills let's go over that that's the next tutorial but i'll give you just a little bit of a sneak peek here um so let's go to our uh so automobile county of middle field this hundred dollars all we have to do is we're on this bill all we have to do is click make payment and it's going to pull up a screen where we can pay it okay that's the next tutorial but very very simple entering the bill is the hard part paying it is the easy part okay one other thing i want to show you remember we the county of middle field we're passing this license and fee through to adam and so let's create that invoice real quick so let's go to sales invoices create invoice or another way to do it we can just go to new customers invoice let's choose adam and here we go here's this hundred remember it's a hundred dollar license and fees we marked it up fifty percent up to a hundred and fifty so as soon as we create an invoice for this customer quickbooks reminds us to add this billable expense so all i have to do is click add and there we go it added the billable expense to our customer shows the original hundred dollars and the fifty dollar markup it won't give this detail to your customer it'll just show it as a permit for 150 dollars it won't show the markup separately okay save and close and there we go we billed our customer for that expense very simple great well thank you i hope that this was very useful and i hope to see you in another quickbooks online tutorial please remember to google free quickbooks online tutorials from fit small business thank you

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