Add bills in Quickbooks Online

 When vendors send bills

Running a commercial enterprise entails significant expenditures, often necessitating the procurement of equipment or commodities to facilitate the provision of services. It is of utmost importance that customers maintain a meticulous accounting of any invoices received from suppliers. Failure to do so could potentially result in financial mismanagement and hinder the organization's ability to function effectively.

What Are Bills in QuickBooks?

In simple terms, a bill is a document that a vendor sends when a client owes them money. Once a bill is paid, the money leaves the business. When a bill is recorded, it is a transaction type that posts an accrual transaction, and the expense is recorded as incurred, even though no cash has been paid yet. The total amount of the bill is posted as a credit, which increases accounts payable. As soon as the bill is paid, accounts payable will decrease, and the bank balance will also decrease.

Clients have the ability to record bills that are not immediately paid. By recording the bill, they are simply associating the purchase with a date or period that is different from the payment date. This practice also helps to keep track of expenses and ensures that they are paid in a timely manner. In addition, recording bills can help clients to manage their cash flow more effectively.

The process of receiving and paying bills is an important aspect of a business's financial management. It is essential to keep accurate records of all bills received and paid, as this information is used to create financial statements and track the business's financial health. By properly managing bills, businesses can ensure that they have enough cash on hand to pay their bills and keep their operations running smoothly.

In conclusion, bills are an integral part of a business's financial management. They represent the money owed to vendors and suppliers and must be properly recorded and paid in a timely manner. By managing bills effectively, businesses can ensure that they have accurate financial records and enough cash on hand to meet their financial obligations.

Recording a bill

Let’s get a bill recorded. 

1. Go to the Expenses tab within the Expense center
2. Select New transaction and then Bill
   
   Alternatively, select the + New button from the left-hand navigation then choose Bill from there
3. In the Vendor field, start entering the name of the vendor or select the down arrow to browse the vendor list
   
   Note that it’s also possible to add a new vendor directly from this screen by selecting + Add new from the list.
4. From the Terms dropdown, select the appropriate payment term

Note that the due date is calculated automatically based on the selected term.

1. Enter the bill number
2. Next, in the box under Category, select the correct account from the list
3. Next, enter a description for the bill
4. Then enter the amount
   
   To attach a copy of the original invoice, either select the Attachments option that’s below the Memo box and upload the document, or just drag and drop the file into the box underneath.
   
   The attached invoice appears as a link and provides easy access when the client returns to record the payment against it.

When done, select Save and close

The new bill now appears at the top of the list in the Expenses tab of the Expense center.