Paying Bills with Discounts in QuickBooks

Paying bills with discounts in QuickBooks allows you to take advantage of early payment discounts offered by your vendors. These discounts can help you save money on your expenses. Here’s how to pay bills with discounts in both QuickBooks Online and QuickBooks Desktop:

Paying Bills with Discounts in QuickBooks Online:

1. Log In to QuickBooks Online:
   • Open your web browser and log in to your QuickBooks Online account.
2. Enter Bills:
   • Before you can take advantage of early payment discounts, you need to have entered the bills from your vendors. To do this, go to the “Expenses” or “Vendors” menu and select “Enter Bills.”
   • Enter the bill details, including the vendor’s name, invoice number, due date, and the amount.
3. Review Bills with Discounts:
   • Go to the “Expenses” or “Vendors” menu and select “Pay Bills.”
   • In the “Pay Bills” window, you will see a list of bills that are eligible for early payment discounts. These are typically labeled with the discount amount and due date.
4. Select Bills for Payment:
   • Choose the bills you want to pay with discounts by selecting the checkboxes next to their names.
5. Review Payment Date and Amount:
   • QuickBooks Online will automatically calculate the discounted amount and due date based on your vendor’s terms. You can change the payment date if needed.
6. Pay Bills with Discounts:
   • Click the “Pay Selected Bills” button to make the payment. QuickBooks Online will record the discounted payment and update your accounts payable accordingly.

Paying Bills with Discounts in QuickBooks Desktop:

1. Launch QuickBooks Desktop:
   • Open QuickBooks Desktop on your computer.
2. Enter Bills:
   • Before you can pay bills with discounts, you must have entered the bills from your vendors. To do this, go to the “Vendors” menu and select “Enter Bills.”
   • Enter the bill details, including the vendor’s name, invoice number, due date, and the amount.
3. Review Bills with Discounts:
   • Go to the “Vendors” menu and select “Pay Bills.”
   • In the “Pay Bills” window, you will see a list of bills that are eligible for early payment discounts. These are typically labeled with the discount amount and due date.
4. Select Bills for Payment:
   • Choose the bills you want to pay with discounts by selecting the checkboxes next to their names.
5. Review Payment Date and Amount:
   • QuickBooks Desktop will automatically calculate the discounted amount and due date based on your vendor’s terms. You can change the payment date if needed.
6. Pay Bills with Discounts:
   • Click the “Pay Selected Bills” button to make the payment. QuickBooks Desktop will record the discounted payment and update your accounts payable accordingly.

Our bookkeeper for small business uses the latest technology to streamline accounts payable and accounts receivable tasks, ensuring efficiency and reducing manual work.

Paying bills with discounts in QuickBooks helps you save money while maintaining accurate financial records. It’s an effective way to manage your cash flow and take advantage of vendor discounts to improve your business’s financial health.