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Swordfish
January 10, 2025
Question

bank feeds

  • January 10, 2025
  • 1 reply
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I do a month's bookkeeping for a company at the end of the month. Usually I enter in this company's vendor's bills and then match the bank feeds against them. But occasionally I just match a bill/invoice directly in the bank feeds.

 

I'm taking a course at the moment and it's talking about the diff b/w a bill and an expense. It says the diff is a bill is one where a vendor sends you an invoice to pay at a later time while an expense happens right then. That's fine. But what happens in the case I described above, where the bill is being entered into QBO and the payment is being recognized on the same day. Is it getting recorded as a bill or an expense?

1 reply

K
KayePe
January 10, 2025

It is recorded as a bill if it the payment is recognized on the same day, @Swordfish. Let me address this concern and help you understand the difference between recording a bill and an expense.

 

When a bill is entered in QuickBooks Online and the payment is recognized on the same day but not immediately or on the spot, it is recorded as a bill. A bill represents payables that can be paid later. For example, if you receive your electric bill in the morning and pay it in the afternoon, it is recorded as a bill. In contrast, the Expense is a bill that are paid immediately.

 

Moreover, to learn more about handling expenses and their differences from bills, please refer to the attached article: Learn the difference between bills, checks, and expenses in QuickBooks Online.

 

On the other hand, I'm also adding these articles for you to read and have a deeper understanding of how to manage bill transactions in QuickBooks: Enter and manage bills and bill payments in QuickBooks Online.
 

Navigating your financial records can be tricky, but our QuickBooks Live Expert Assisted team is here to help you identify the most important dashboards and reports for a clearer understanding.

 

Our task here in the Community is to guide you in recording your transactions. If you still have questions about handling expense transactions, feel free to let me know. I'm always here to support you in achieving your business goals using QBO.

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