check vs cheque This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you QuickBooks Desktop Tutorial: Write Checks vs. Enter Bills (and Pay Bills). Following along are instructions in the video below:
“And then we re gonna compare two workflows. One is bills and pay bills right right that workflow goes together and the other one is right check. I think right is easier to understand so i m going to start with right check. So i m going to click right there on the bottom right where that s where i check i m gonna click on that and the right check it s a function used for you to record any type of bank transaction.
So any type of bank expenditure any time of money coming out of your bank right of your checking account savings. Account petty cash account. So any type of monies or payment coming out of my bank account whether it s a check or a debit card or a wire transfer or an ach in quickbooks is called write check now let me go ahead and write a check to this vendor. Here.
And i m gonna put here 100 and then down here under expense. I m going to choose the category and let s say it s utilities. So so if i hit save and close in here. What i m doing is i m recording an expense and i m also immediately taking the money from the bank.
So write check records. An expense and paste. It immediately now up here. Where it says check number.
That s what you put the actual check number that you re writing. But if you don t have a check that you re paying this with because you re paying this via ach or a debit card or a wire transfer again a different way that money comes out of the bank..
That is not a check then what you do is instead of putting a number there i ll just put type. The word wire okay or put a w. All right whatever is easier for you or put the word up or just put a d for a debit card transaction or write the word debit right so unfortunately quickbooks doesn t have a separate transaction window for a debit card or a wire transfer or an ach or an electronic payment from the bank. So it uses write check for every type of bank transaction coming out of the bank.
So let s go ahead and put that check number again there and let s continue and we ll do a save and close so what we did was with write check is we created an expense and we immediately we paid. It now pay bills and enter bills is a little bit different so that same bayshore water expenditure. I can make it with pay bills. I mean started with enter bills.
But with what until bill will do notice that nowhere here i can choose where i m paying from nowhere in this screen. I m telling it what bank account. I m paying from because i m actually not paying a bill is not a payment. A bill is entering an expense.
Today that i m gonna be paying in the future in accounting terms. That is called accounts payable. So a bill is for me to record. A future payment of a current expense.
Ask a little bit confusing so the expense happened today or this month. Or this period..
And the payment will happen later and and the nice thing about using bill and bill pay instead of write check. These are like in control. In which month. My expense shows up regardless of when i pay it that s the concept of accrual accounting is that whenever the bill exists.
That s when the expense exists. And when the payment goes out that could have an entirely different date. So i m gonna go here to base your. Water and then we ll put this one for let s say 2000.
And then we ll put their utilities and then we ll hit save and close and i m just going to show you a profit and loss report for that same day. So we can actually see how these transactions reflect on the report and let me do a profit and loss just for one day. It s so that one day that i did the transactions and then i m gonna go down here to utilities and i m gonna look at all my utilities expenses which are in this case 300. So i m gonna go ahead and click on those 300 double click.
And then i see both of my transactions. I see let me make this font a little bigger. I think will be useful for people looking at this and on a little screen here so usually to make the font bigger you right click and and change. The font size alright.
So i m going to change. The font size here to 11 and hit ok..
And that should be easier to see so we see a hundred dollars here and two hundred dollars here and one was a check and one was a bill now when i look at this report. Let me go back to my profit loss. I have 300 worth of utilities. Why because i got a bill in a check.
But this is an accrual basis report okay if i was to switch this to a customized report. I ll make a customized report and switch this from accrual to cash and there ll be another sectional report. So i won t get into too much detail about that but a message set to a call to cash and hit ok and then i m only gonna see now 100 worth of utilities. Because the other 200 was a bill and that hasn t been paid.
So that s the difference between cash and accrual and they re in tears of you another video and we ll spend a lot more time talking about those two. But that is in contrast. The difference between doing a write check and a built now i still have to pay this bill. Now.
What i never want to do is use the write checks function to pay an outstanding bill because if i try to do that so i m gonna go to write checks and i m gonna click on or select bayshore water quickbooks is actually gonna warn me it s gonna give me a big warning that says warning you should not be using the write checks function to pay a bill because you re going to record an expense being paid immediately and you re gonna ignore that outstanding payments from the sorry the outstanding bill or the outstanding accounts payable from that bill and my bill s gonna stay open forever and my expenses will be duplicated and this whole. Thing is gonna be a mess. Now most quickbooks. Users.
Say yeah. Yeah..
Whatever okay and they hit ok. And they ignore. The window. And they just keep going and they put the 200 and that causes the issue.
So if you are gonna pay a bill or if you re going to create a bill before you re gonna pay it later you have to make sure that you actually use the pay bills option right. And you can use the pay bills option to pay with a check. That s totally okay. So i can i can write a check right with the pay bills function.
But i m not gonna click on the write check window. I m gonna click on pay bills and the only difference is that the screen looks a little bit different and i select it and then down here in the bottom. I can select the date of the check that i m writing all the way in the bottom left and then i can check that yes. I m paying with a check and then i can assign the check number like we did last time and then click pay selected bills and that in a nutshell is how you finish the workflow and i ll put the check number here that s how i finish the workflow of using a bill and then pay bill to pay so again in a nutshell you can you are allowed to pay a bill with a check.
But we re gonna click on baby not write check because write check is to make an expenditure that s going to be paid immediately and enter bills is to record an expenditure that s going to be paid. Later and that s gonna be paid with the ” ..
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