A Comprehensive Guide on QuickBooks Online Bill Paying
If you are operating a business, you would want to pay bills on time else they turn out to be a major burden. If you are using QuickBooks, here is the good news. You can use a QuickBooks feature – ‘QuickBooks online bill paying’ – to pay your creditors and suppliers on schedule. On top of all that, it may assist in managing cash flow issues like unpaid bills and overdrafts from credit cards.
To make your life easier, you may manage payments, set up reminders, monitor your bank account, and balance your books. As a result, online bill payment services like QuickBooks Bill Pay may help you save time and reduce your workload.
- 1 Understanding ‘QuickBooks online bill paying’
- 2 Bill Pay’s mechanism of operation
- 3 How to use ‘QuickBooks online bill paying’?
- 4 Make a Payment Towards Your BIlls
- 5 Conclusion:
Understanding ‘QuickBooks online bill paying’
Small companies depend on QuickBooks to handle their accounting, record invoices, and keep their books up to date. Bill Pay by Melio, a feature of QuickBooks, allows users to pay bills simply by entering them into the software. With Bill Pay, you can plan out future payments so you don’t have to worry about missed deadlines or bad credit scores.
If you need to, you may also make one-time payments to suppliers to give yourself complete freedom and control. You don’t have to leave QuickBooks to pay your invoices online, so you can deal with all of your accounts payable and stop receiving paper bills. This service is also available through the QuickBooks mobile app, giving you more payment choices and flexibility. As a result, you’ll have complete control over when and how your receiver receives the funds you’ve sent them.
Bill Pay’s mechanism of operation
With Bill Pay, you may quickly and simply submit checks and bank payments. There is nothing that recipients have to do on their end; nothing is required of them. To pay bills online, simply open your accounting program and input your bank account information. Invoices, books, and bill payments may all be settled in real-time.
To begin, choose how you want to make the online payment. You have many options.
1- QuickBooks Cash:
Pay bills straight from your QuickBooks Cash account. Login into your bank account through your user ID and password. You can also physically perform the micro-deposit procedure at your banking institution. In one to three business days, you’ll have your money.
2- Debit card:
Use a debit card to pay your bills online. Simply provide the card number and expiration date in the appropriate fields. The payment will be processed free of charge the next business day.
3- Credit card:
Even in places where credit cards are not accepted, you may use a credit card to fund bill payments and manage cash flow. Payments made with a credit card are subject to a 2.9% service charge. However, this cost may be deducted from your taxable income.
You may also use this payment option to postpone payments on bills, allowing you to better manage your cash flow while also earning important card points and building your company’s credit score.
How to use ‘QuickBooks online bill paying’?
You must first input your invoices into QuickBooks before you can utilize the online bill pay function. You may then use QuickBooks Online’s bill-paying function to settle your accounts with them. When you pay your bills, QuickBooks automatically creates an accounting record to reflect that. The following are additional steps to complete the process:
- Go to Pay Bills to begin.
- Select Pay Bills from the Vendors drop-down menu in the New window that appears.
- Decide on the bills you want to pay and then pay them.
In the Pay Bills section, you will see a list of any bills you’ve submitted but haven’t paid yet. Mark the invoices you want to pay with a checkmark. You will have to enter:
1- Payment account:
To make payments, choose the checking account you’d want to use.
2- Date of payment:
Enter the date you want to appear on the checks. The date shown here is often the most recent one.
3- Initial check number:
Indicate the initial check number for the audit. Alternatively, you may choose to Print later and then store and reprint the checks at a later time by checking the box next to it.
4- Select bills to pay:
Choose the bills you want to pay in the box to the left of each one.
If you choose to pay a bill, QuickBooks will set the payment amount by default to include the full open balance. However, if you just wish to pay a partial payment, you may reduce the payment amount.
Make a Payment Towards Your BIlls
You have two options for paying bills: either print, sign, and send checks, or utilize the free QuickBooks Online bill payment feature.
Option 1: Print off your checks
Checks may be printed by selecting Save and print from the drop-down box on the payment page. You can print checks if you’ve printed them before. It’s in your best interest to click there if that’s the case.
The Print Checks page displays all checks that have been saved and sent to the print queue.
Selecting and printing checks
Make that the checking account selected in the drop-down menu in the screen’s upper-left corner is the right one. Only checks made from the selected checking account will be shown on the screen. Select the checks you want to print, enter a check number as a starting point, and then select the Preview and print button in green. Once you’re finished, just follow the on-screen instructions to get a preview of your checks before printing them.
Option 2: Use QuickBooks Online Bill Pay as an alternative
If you want to pay your bills online, go to the Pay Bills page and select the green Schedule payments online option. QuickBooks Online can guide you step-by-step through setting up Bill Pay. A bank transfer or debit card payment will be free; however, purchasing with a credit card will cost you 2.9% of the total. You can pay them with either a physical check or a direct bank transfer, regardless of how you choose to pay.
Scheduling payments allows you to choose a separate payment date, method, and delivery method for each bill that you’ve chosen for paying.
To make an online payment, click on the Vendor name on each statement to bring up a new window where you may enter your payment information.
1- Decide on a mode of payment:
Decide on how you’ll send the money. You’ll be presented with the following choices after clicking on this link:
- Money is kept in a bank account (free)
- Pay using a debit card (free)
- a charge on your bank card (2.9 percent )
You’ll have to enter your payment account information the first time you use any of the payment methods.
2- Funds deduction date:
The transfers are seldom immediate. You’ll want to choose a date a few days before the due date to allow for processing time.
3- Choose the payment to the seller:
Indicate how to pay the vendor. You have two cost-free choices, as listed below:
One to four business days for a bank transfer or an ACH
In five to seven business days, you should get a paper check.
4- Payment delivery estimate:
QuickBooks will give you an idea of when the seller will get their money. For payments made late, select a later deduction date or a quicker delivery option.
Click the green Schedule all payments button after you’ve finished entering the payment information for each bill. QuickBooks Online allows quick and simple payment. It also creates accounting records in QuickBooks of the same.
Contact QuickBooks Support if you need any further assistance.
QuickBooks online bill-paying acts as a wonderful option when it comes to making payments. It is hassle-free and quick. If you still have doubts or any problems with QuickBooks online bill paying, you can contact us.
Frequently Asked Questions (FAQs)
Following are the fruitful guidelines that will walk you through the ways to Pay Bills Directly From QuickBooks Online. Let’s start following the steps one-by-one:
- First, sign in to your QuickBooks Online account with correct login credentials.
- Now, click on the “+ New” tab.
- Choose the option “Pay Bills Online”.
- Thereafter, select the checkbox on the bills you want to pay and then click “Next”.
- Now, review the payment info properly. If any updates are required, click the “Edit details” tab.
- In the end, click the “Submit Payment” button to submit your chosen payments.
This is how you pay your bills with QuickBooks with no hassle.
It is however extremely essential for small business organizers to pay bills on time to vendors, lenders, and suppliers. QuickBooks is the one prominent account managing software utilized for small and medium-sized firms. So, it is quite compulsory to have QuickBooks accounts so that you can easily pay your bills to your vendors. Thus, the answer would be a ‘Big Yes.’ You have to Use QuickBooks To Pay Bills otherwise you will probably confront cash-flow problems. You will see the option of “Sign up for Bill Pay” in your QuickBooks Online account to begin paying bills.
QuickBooks Bill Pay is completely FREE for the first month. After a free trial period gets over, the QuickBooks Online service will start charging $15.95 per month for up to 20 payments. And, $6.95 will be charged for each additional set of 10 payments. These are the applicable charges to gain the benefits of Bill Pay In QuickBooks Online. Hence, being an existing QuickBooks Online user, you will frequently schedule electronic payments with ease using the eBill tool. Additionally, you will be able to track payment statuses such as estimated delivery times and allowance information.
QuickBooks Online Works With Bill Pay together for billing payments. Let’s have a look at how they work with efficiency:
- Pay bills electronically within QuickBooks Online account.
- Pay vendor bills directly from QuickBooks Online with ACH or a paper check.
- Record payment transactions that you have made automatically in QuickBooks Online.
Only QuickBooks Online admin and account holders, who have been enabled, will be able to use the Bill Pay account. They will have the ability to use the Online Bill Pay in QuickBooks Online.
Online Bill Pay enables you to make individual electronic payments frequently from your bank or credit union. Here’s the step-by-step setup guide to Activate Bill Pay In QuickBooks Online:
- Collect your entire bills with account numbers and the complete addresses to where you mail the payments.
- Provide your biller’s information correctly into your bank’s online bill pay tool.
- Choose at what time or date to send the payment.
- Choose a persistent or one-time payment.
- Set reminders when the bill is due.
With the activation of Bill Pay in QuickBooks, you will modify your bills and keep track of due dates. Additionally, you will check where your fund is going.