I’ll now recreate the purchase of burgers from Bob’s Burger Joint as a bill due in 10 days. To create a bill click the quick create button and select “Bill” from the Vendor’s column. I’ll now enter this transaction as a bill so you can see the difference. You can see that Bob’s Burger Joint is not listed in this report. The easiest way to get to this report is to search for it from the Reports screen. To see upcoming bills we’ll view the Accounts payable aging summary report. If I viewed any reports in QuickBooks that show upcoming bills this expense would not be there. I can see that I have $100 in Meals and Entertainment expenses. To view the Profit and Loss report click on Reports in the left-hand menu and then “Profit and Loss.” Let’s see what this looks like in the Profit and Loss report. This was paid at the time of purchase from a checking account. In this example, I’m creating an expense for $100 worth of burgers purchased at Bob’s Burger Joint. In the menu that opens click “Expense” in the Vendors column. This is the large button in the upper left-hand corner that says “+ New” To create an expense in QuickBooks click on the Quick Create button. Let me show you what it looks like to enter both a bill and an expense in QuickBooks. If you enter a bill as an expense it won’t show up on those reports and you won’t know that you owe that money. Quickbooks has various reports that allow you to see outstanding bills. If you enter what should be a bill as an expense it would not show up on those reports. You’ve purchased the product but the money will not leave your business’ bank account until a later date. If you purchase and receive a product or service but won’t be paying for it right away, that would be a bill. The money left your business at the time of purchase. Or if you pay online with a credit card, Paypal, or similar, that is an expense. When you purchase a product or service for your business and pay with cash or check. If that’s confusing let me explain further. However, in QuickBooks, they do have two different meanings.Ī bill is money that your business owes but will pay at a later date.Īn expense is money that your business spends at the time of purchase. How expenses and bills show up differently in reports.The difference between a bill and expense.In this tutorial I’ll teach you how they’re different and when you should use one over the other by showing you: Have you ever wondered what the difference between a bill and an expense is in QuickBooks?
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