A simple way to manage auto-pay expenses in QuickBooks Online

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QuickBooks software

If you’ve got expenses on auto-pay, we’ve got a quick and easy solution for you to track those expenses in QuickBooks online.

It’s gonna help you stay on top of them and your cash flow. We help business owners design a bookkeeping system that works well for them, while getting confident with using QuickBooks Online.

And today we’re going to show you an easy way to track auto-pay expenses in QuickBooks Online. So let’s get started. Okay, so what we’re looking at here is the QuickBooks Online test drive file.

If you Google QBO test drive, it’s the first thing that’ll come up, and you can use this file to play with anything that we’re showing you here in these video tutorials.

So, what we’re focusing on today is managing those auto-pay expenses that hit usually every month. So, we have found, I know for myself, all those auto-pay expenses can get kind of, they can just pile up in a corner.

You kind of forget what you’re subscribed to. You don’t really know what’s coming up, so it can be hard to predict cash flow and a little challenging to budget. So we want to have a way in QuickBooks Online to get those easily listed, visible, and easily managed in your accounting software.

So, first thing we’re going to do is go to the top right gear icon here. Under Lists, we have Reoccurring Transactions and we use this for quite a few different things, and we do have some other videos on how we’ve used this area of the file.

We love our Reoccurring Transactions, so be sure to check out those videos, I’ll link them below. But, for today, we’re going to do New, and we’re gonna select Expense, click Okay. And let’s say, this is your internet bill, oops. And I’m gonna leave it as scheduled, and I’m gonna leave, Create Blank Days in advance.

So that means that it’s just gonna create it on the day that it hits. And we’re going to do our vendor as Comcast from our business checking account. And we’re gonna have it hit monthly on the first day of the month, starting September 1st. I’m not gonna put an end date since we’ll be using internet forever.

Payment method, you can put, if you have it tied to a debit card that goes to your business account, that’s fine. You can just put that there. Tags, I wouldn’t really worry about here. Category details, we’re gonna do inter, if I could spell, internet, and our bill each month is gonna be $45. And Save Template.

All right, here it is. So we see that every month, this will enter into our accounting system. The next date is September 1st, and then it’ll keep going monthly there. You can always go onto your template and edit it if there are any changes.

But otherwise just leave it alone, it’ll do its thing. And whenever you go to update your Bank Feeds, you’ll see that it matches up very nicely in the system for you. So there’s not a lot of work that you have to do there.

So as you can see, super easy way to manage your auto-pay expenses. Doing it this way means that you have a very clear list of all of the things that are hitting on a reoccurring basis. And it’s really great, so that you have an idea of your cashflow. You can budget for those expenses, and they will match up correctly whenever they come through the Bank Feeds Center.

So, pretty quick to set up, and it’s gonna do all of the work for you once you do put a little time in upfront to get it set up.