LUTZ BUSINESS INSIGHTS
Accounts payable automation: 3 ways quickbooks can help
lauren harRis, CAS MANAGER
Did you resolve to pay bills on time in 2021? Do you have a plan to do that? If you are using QuickBooks, there are three ways you can use automation to help you achieve your goal: reminders, memorized transactions, and scheduled reports.
If you have more than a handful of bills to pay every month, it is a wise idea to set Reminders in advance of the due date so you can process the payments on time. To turn these on in QuickBooks, you open the Edit menu and select Preferences, click on Reminders, then on the Company Preferences tab. QuickBooks displays a list of actions, some of which must be completed by specific dates (like Bills to Pay and Memorized Transactions Due). You can enter the number of days before the due date that you want the reminder to appear in your list.
Click on My Preferences in the same window and make sure to check the box for Show Reminder List when opening a Company file. You can always access the Reminders list from the Company menu, but this option will display the reminders list first thing when you open QuickBooks.
Bill payment is a tedious, repetitive task. For the most part, you write checks or authorize payments to the same individuals and companies regularly. Some amounts vary and others may stay the same.
QuickBooks allows you to “memorize” vendor transactions. This is useful for recurring transactions to the same vendor. This feature allows you to save those transaction forms (I.e., bills, vendor checks) so you can call them up when they are due, edit the amounts as needed, and send them. You can even designate the transactions to be created automatically if the details do not change from month to month.
To create memorized transactions, you create a transaction such as a bill or vendor check and click Memorize from the top ribbon. QuickBooks gives you a few choices when setting up the memorized transaction.
- Add it to your list of Reminders so you can edit it before sending or forego that option.
- Add it to a Group of similar memorized transaction that you use.
- Let QuickBooks automatically enter the transaction if the amount is always the same, like a loan or rent payment.
If you have assigned bill payment duties to an employee, you can create a schedule to memorize and deliver two reports to him or her: A/P Aging (Detail or Summary) and Unpaid Bills Detail. You can specify an email address and date/time for the reports to be delivered. If you have these two critical reports sent to both yourself and your employee responsible for bill payment, it is unlikely that you’ll miss a payment.
Scheduling reports takes some setup work in QuickBooks We can help with this if you are interested in setting these up.
We can walk you through any or all of these automated processes and answer questions you might have about your company’s accounts payable tasks. We can also help you explore other ways you can automate accounting tasks in QuickBooks.
ABOUT THE AUTHOR
LAUREN HARRIS + CAS MANAGER
Lauren Harris is a CAS Manager at Lutz with over five years of related experience. She specializes in small business consulting including payroll tax reporting and compliance, software installation, training and support, and outsourced accounting assistance. In addition, she works with clients to improve their internal processes and procedures.
AREAS OF FOCUS
- Business Consulting
- Outsourced Accounting
- Payroll Compliance & Consulting
- QuickBooks Training & Support
- Accounting Software Consulting
- Franchise Accounting & Support
- Tax Compliance
- Restaurant Industry
- Construction Industry
AFFILIATIONS AND CREDENTIALS
- American Institute of Certified Public Accountants, Member
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
- BSBA in Finance and Accounting, University of Nebraska, Omaha, NE
- Midwest YouCan Foundation, Treasurer
- Teammates Mentor
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