Millward, May & Co - Wokingham Accountants
Wokingham Accountants

Quickbooks - Expense Receipt

Adding a Bill

Here is a guide on how to add a bill and then match it to a bank payment within Quickbooks.


Adding a bill

Click on the plus '+' sign on the top right menu and then under the 'suppliers' list click on 'bill'.

You'll then need to add the following details:-

  • Supplier: enter the name of the supplier (e.g. ABC Limited)

  • Bill date: enter the date on the bill (e.g. 01.01.2000)

  • Category: enter the category that the expense relates to (e.g. phone, rent, materials, etc)

  • Description: enter a description if the expense needs more explanation. A monthly payment to Vodaphone for “mobile phone” is self explanatory. However, an amount paid to Amazon for “Computer Equipment” needs more explanation.

  • Amount: enter the total amount on the bill if you’re not VAT registered or the total amount less VAT (also known as the ‘net’ amount) if you’re VAT registered.

  • VAT: Enter the VAT rate if your business is VAT registered (click here for a VAT guide). If you're not VAT registered but there is an option to add VAT, just select 'no VAT'.

  • Attachments: add an attachment if you’re adding your expense receipts into the software. Alternatively, you can keep the receipts in a physical folder.

  • Then click the arrow pointing down in the bottom right corner and select:-

    • 'Save and close' - if you don't want to add another bill

    • 'Save and new' - if you want to add another bill

Quickbooks Bill.PNG

Matching a bill to a bank payment

IMPORTANT: DO NOT CLICK ON 'MAKE PAYMENT' NEXT TO THE BILL IN THE EXPENSES TAB. Unfortunately, it's very easily done but the best way is to match the expense to the amount paid in the banking tab.

Click on the 'banking' tab on the left hand menu and it will take you to a list of bank transactions downloaded from your bank account.

If given the option to match - on the right hand side of the transaction you may be given the option to match if the bank payment exactly matches an outstanding bill. If the software does this, check that the bill details in the 'category or match' column are for the correct bill and then click match. If the details aren't for the correct bill, follow the 'if it doesn't give you the option to match' steps below.

If it doesn't give you the option to match - you'll need to click on the amount paid in the 'spent column' (IMPORTANT: DO NOT CLICK ADD), then click ‘find match’ and you'll be presented with a list of outstanding bills. If you can't see the outstanding bill(s) you want to match try changing the From/To dates. Depending on the situation you'll then need to do the following:

  • Single bill that exactly matches - select the bill on the left hand side. The open balance should match the payment amount.

  • Multiple bill payments - select the bills on the left hand side that the bank payment relates to. The open balances should match the payment amounts.

  • Partial payments - enter the payment amount against the bill it relates to. For example an open balance shows a value of £100 but we've only received £20 - enter £20 next to the £100 bill and the balance carried forward will show as £80 outstanding.

Check that the difference is 0.00 and then click 'save'.


Checking outstanding bills balance

Once you've added a bill it will become an amount owed to a supplier by you. Once you have paid it in the bank and matched it using the process shown above it will have been paid and so the supplier will not owe you anything.

To view outstanding bills, click on the 'expenses' tab on the left hand menu and then select 'suppliers' - the outstanding bills should show in the 'open balance' column.

In the picture below we can see that we owe ABC Limited £100.

Adding Invoice 3.png