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love hate
Apr 14, 2019 12:18 PM UTC
Solved

Difference between recording Bills and Expenses

What is the difference between recording an item as “Expense” or recording it as a “Bill”?

Tx, Love Hate

GeorgiaCAnswer
Apr 3, 2020 2:14 PM UTC

Hi Gerry, 

 

Really this is up to you, once you have marked the bill as paid in QuickBooks then this posts the same as an expense transaction does, i.e to the selected expense account and the payment account. 

 

If you have many invoices and would find it easier to keep track of unpaid invoices in QuickBooks, then we'd suggest upgrading as there are reports for 'Unpaid Bills', which can be ordered by the due date, to give an easy overview. 

 

Let us know if you have any queries on this below!

 

Thanks

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4 replies

Rustler
Rustler
Apr 14, 2019 1:41 PM UTC

enter bills is for when you will not pay the bill immediately, if you use enter bills, then use pay bills to pay it and link the payment to the bill

garry clarkson
garry clarkson
Apr 3, 2020 11:58 AM UTC

I am getting this. 

 

We are a Community Company (we do not have PAYE employees) so that we have

1. expenses (power, fuel etc) which I pay in 'Expenses'

2. We also have several freelance self-employed people who invoice us for their service such as A films a concert so we pay him his fee (after he invoices us). 

 

Am I right that it would be better for our accounts to create a 'bill' for the freelancers who supply services (such as A's filming) and then pay it once we receive their invoice. 

 

The company has only been up and running 3 weeks (and now all our clients have Covid-closed) but we still need to pay outstanding invoices from our freelancers. We are on Simple Start package (so I can't create a bill). Would I be better of on 'Essentials' in order to track these bills? 

 

Thanking you all in advance. 

 

G

GeorgiaCAnswer
Apr 3, 2020 2:14 PM UTC

Hi Gerry, 

 

Really this is up to you, once you have marked the bill as paid in QuickBooks then this posts the same as an expense transaction does, i.e to the selected expense account and the payment account. 

 

If you have many invoices and would find it easier to keep track of unpaid invoices in QuickBooks, then we'd suggest upgrading as there are reports for 'Unpaid Bills', which can be ordered by the due date, to give an easy overview. 

 

Let us know if you have any queries on this below!

 

Thanks

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