In this lesson, you will learn how to pay bills in QuickBooks Online. You’ll learn how to pay bills by printing checks as well as how to submit electronic payments for free through the QuickBooks Online bill paying feature.
We appreciate you completing this free tutorial for QuickBooks Online, our best overall pick for small business accounting software. To get the most from this lesson, we encourage you to follow along in your own QuickBooks account. If you don’t already subscribe to QuickBooks Online, you can choose from a 30-day free trial or 50% off for three months.
This lesson is one in our series of Free QuickBooks Tutorials. These step-by-step illustrated instructions present an easy-to-follow guide on how to pay bills in QuickBooks Online.
Why You Should Use QuickBooks Online Bill Paying
The QuickBooks Online bill paying service is ideal for businesses that want more control over exactly when bill payments clear their bank account. If you have several bills and have had difficulty making on-time payments, QuickBooks Online bill paying can help.
To use the QuickBooks Online bill paying service, you must first enter your bills into QuickBooks and then pay them using the QuickBooks Online bill payment feature. QuickBooks automatically will make the accounting entry to show your bills are paid and no longer outstanding.
How to Pay Bills in QuickBooks Online
1. Navigate to Pay Bills
Click the New button at the top of the left menu bar and then select Pay Bills in the second column under Vendors:
2. Select Bills for Payment
The Pay Bills screen will provide a list of all bills that have been entered and are still outstanding. Place a checkmark next to the bills you wish to pay:
A. Payment account: Select the checking account that you wish to use to make the payments.
B. Payment date: Enter the date to print on the checks. This is usually the current date.
C. Starting check no.: Provide the starting check number. Alternatively, you can place a checkmark next to Print later to save the checks and print them at another time.
D. Select bills: Select bills to pay by placing a checkmark in the box to the left of the bill.
E. Payment: After you select a bill to pay, QuickBooks will default the payment amount to the entire open balance. However, you can change the payment to a lesser amount if you want to make a partial payment.
3. Pay the Bills
You can pay bills by printing, signing, and mailing checks, or you can use the free QuickBooks Online bill payment option.
Option 1: Print Checks
If you want to print checks, click the drop-down box next to the green Schedule payment online button and select Save and print. If you’ve printed checks in the past, the green button might already be Save and print. If that’s the case, you should click there.
The Print Checks screen will show all checks that have been saved and are waiting to be printed:
Verify the checking account in the drop-down box in the upper-left corner of the screen is the correct account. The screen will only show checks that have been written from the specified checking account. Place a checkmark next to the checks you wish to print, provide a starting check number, and click the green Preview and print button. Finally, follow the on-screen instructions to preview and print your checks.
Printing checks later: This Print Checks screen can be accessed anytime by clicking on New at the top of the left menu bar and then selecting Print checks in the second column under Vendors.
Option 2: Use QuickBooks Online Bill Pay
To pay your bills online, click the green Schedule payments online button at the bottom of the Pay Bills screen discussed in step two. The first time you use Bill Pay, QuickBooks Online will walk you through the setup process. You’ll have the choice of paying with a bank transfer or debit card for free or paying with a credit card for a 2.9% fee. Regardless of your method of payment, the vendor can receive the payment either by a paper check mailed on your behalf or a direct deposit into their bank account.
The Schedule Payments screen will show the bills you have selected for payment and allow you to input a different deduction date, payment method, and delivery method for each bill:
Click on the Vendor name for each bill to open a screen to input the necessary information to make an online payment:
A. Select payment method: Choose the method you want to use to make the payment. After clicking in this section, you will have the following options:
- Bank account (free)
- Debit card (free)
- Credit card (2.9%)
The first time you use each of the payment options, you’ll need to provide the details for your payment account.
Pay any vendor with a credit card: QuickBooks Online Bill Pay provides a convenient way to pay any vendor with a credit card, even if the vendor doesn’t otherwise accept them.
B. Funds deduction date: Select the date you want the funds deducted from your account. Generally, transfers are not instantaneous, so you might need to choose a deduction date a few days before the due date.
C. Select how vendor receives: Specify how you would like the vendor to receive your payment. Both options are free:
- Bank transfer, or automated clearing house (ACH) in one to four business days
- Paper check in five to seven business days
D. Estimated payment delivery: QuickBooks will provide an estimated date that the vendor will receive your payment. If this is after the due date, you will need to specify an earlier deduction date or faster delivery method.
Once you have provided the detail for each bill payment, click the green Schedule all payments button. QuickBooks Online will then make all your payments as well as make the accounting entries in QuickBooks.
You’ve completed another lesson in our QuickBooks Online Training Course! You can now pay bills by either printing checks or using the free QuickBooks Online bill payments feature. The next lesson in our QuickBooks Online Training Course is How to Enter Bank Transactions.