[Question] Quickbooks - Best Practices Question (Create a Bill)

[Administrative Partners]

In Quickbooks, do you create a bill for expenses that occur every month and that are automatically deducted from your bank account. For example, the fee for Constant Contact automatically comes out of my account and I record it reconciling my bank statement but do I need to create a "bill" for it as well? Not sure where/if this would come in handy. Please enlighten me :-)

tj

[BookkeeperSC]

Since it is an automatic draft and you probably do not actually receive a bill, it is alright to record it directly in the check register. Make sure you code it correctly and you should be good to go. It is truly a preference.

[christinenc]

Hi Tamika,

I recommend creating a memorized transaction that QB will enter automatically each month; you don't have to think about it. When it comes time to reconcile, it's already entered.

Christine

[Tomekia Lloyd]

Hey Tamika,

Just as Melissa stated, you can record it directly into your register. The only reason you would probably record auto drafts in "Bills" is to remind yourself when it will be deducted for budgeting purposes.

[christinenc]

Hi Tamika,

I recommend creating a memorized transaction that QB will enter automatically each month; you don't have to think about it. When it comes time to reconcile, it's already entered.

Christine

Just to clarify, you would create a check as the memorized transaction. The check will be auto-entered on the due date; this cuts down on data entry. Instead of entering a check number, you would just enter auto-pay or even eft in that field. If the amount is the same every month, then you can enter that amount and save it. If the amount varies from month to month, then you would enter it as a zero amount. You can either edit the check amount in the check register when you know it or when you reconcile the account. When you open the reconcile window, the transaction will show up as a 0.00 in the credit/deposit side of the window. You can go to the transaction from here and edit the amount. The transaction will then be moved from the credit to the debit/check side and can then be checked off.

I hope this info is useful and if you already know how to do all of this, then sorry for rambling on.

Christine

[Administrative Partners]

This is very useful. As mentioned Quickbooks is a work in progress, but I'm very excited to learn more about it everyday.

As always, thanks for your insights and best practices.

[christinenc]

Great; I'm glad that I could help in some way. I was worried that I was telling you stuff that you already knew. Happy to help however I can.

Christine

[KMartin]

I think a memorized transaction is a great way to handle it Christine!

[amdulaney]

Hi Tamika,

I recommend creating a memorized transaction that QB will enter automatically each month; you don't have to think about it. When it comes time to reconcile, it's already entered.

Christine

This is a good way of doing it. The plumbing company I worked for had did this for expenses that were automatically taken out of the account. Usually on the day it is required to be taken out, QB gives you a little pop up asking you if you want to accept the transaction. This also lets you know that it is coming out. HTH

[SaraASB]

Note that A/P bills are used for accrual accounting. The date of the bill instead of the check date determines what month to post the expense. If the draft pays something that you want to expense in the prior month, you must enter a bill and then a "bill payment" to represent the bank draft. Typically, auto drafts are for note and/or interest payments that have their own liability account, so simply use a check to represent the draft. The date on the check is the date to reduce the liability or increase an expense. Memorizing the check drafts is an incredible tool. For cash basis clients, I also use memorized checks to remind me to pay bills that might not have arrived or are lost. I have one client that is slow in bringing me his bills to pay. Especially his cell phone & electric bill. This reminds me to go onlne and get a copy or pay it.