How to: Accounts Payable in QuickBooks Online

Bookkeeping
Author: Sean Duffy  -  Published: 06/01/2022

If you're looking for an efficient way to track your company's expenses, then this is the right article for you! Accounts payable is an accounting term that refers to money owed by a company or individual to suppliers or others who have done business with them. It may also refer to money owed by the company, business owner, or individuals.

Using an accounts payable aging report can help business owners manage their books. It's a valuable tool for tracking the amount of expenses paid versus owed. And, it helps provide insight into when payments are overdue and the steps needed for them to be paid off in full.

How to use an Accounts payable Aging Report in QuickBooks Online

A QuickBooks Online aging report is like having a money management dashboard in your hand. In the next section, we will show you how to set up the aging report. The aging report allows you to view your Accounts payable balance as of any specific day or date (or range of dates). Using the Aging Summary Report below, helps identify accounts payable amounts over 30 days old for your review.

These are the steps you'll need to take to run an Accounts payable aging report:

1) Left-hand side > click on Reports > In the search bar in the upper right-hand corner, type in "Accounts payable" and select either Accounts payable aging summary or Accounts payable aging detail > in this example, we will be choosing the Accounts payable aging summary

2) On the next page > filter for date. For instance, you can choose either "Today" or a specific date range. With date range selected > click "Run Report" located on the right-hand side.

3) To view the amounts owed > click directly on the vendor names or the dollar amounts. For this example >click on "226" owed to "Jennifer Hargreaves."

If you want to change the filters, you can click on the report's gear icon "Settings" at the top right-hand corner. Doing this will open a new window with additional information on the amount owed. Once you've selected your filters, select "Next" again.

4) The last steps include:
-        Saving or exporting the data that you want to analyze
-        Correcting amounts or applying vendor credits, or payments against the amounts
-        Following up with the vendor, paying the vendor, or agreeing to a payment plan

Related Articles: 8 Tips to Improve Your Bookkeeping & Processes for Accounts Receivables

Frequently Asked Questions

What's the value of running an accounts payable report?

The value of running an accounts payable report is that it provides you with a snapshot of your company's financial performance. The aging process, which we will go over below, will allow you to compare the amount owed versus the amount earned. This provides a baseline for outstanding payments and their percentage of revenue and earnings and will enable you to determine if any trends are developing that may be worth further investigation.

From there, it's an easy step to determine if additional steps are needed for payments to be started or if they are overdue.

Are there any risks with not looking at an accounts payable report regularly?

As an owner, an accounts payable report can help you make better decisions about managing your company. There are circumstances where you might owe money that you usually wouldn't notice because you don't have access to reports tracking this data. It's important to note that this is a risk if you don't have the money to pay off your outstanding balances. This is why it's critical that you understand the value of having an aging report.

For example, an aged accounts payable report might show a series of overdue payments or payments held up. This could be for various reasons, one being the late payment fee. It's helpful to understand what is causing these payments to be late or why they aren't paid off on time to avoid incurring additional fees or penalties on your end. If you're looking for ways to save on your business expenses, this can help you determine where you're losing money and how you can avoid it in the future.

What do I need to know before starting an accounts payable aging process?

You want to make sure you understand what the aging process entails and how it will help your company understand your revenue and expenses.

What do I need to know before starting an accounts payable aging process?

You want to make sure you understand what the aging process entails and how it will help your company understand your revenue and expenses.

How often should I run my accounts payable report?

You must run an accounts payable report regularly to know your outstanding balances. Ideally, you would be running an accounts payable report at least once a month to ensure that you do not have too many outstanding payments or pay too much in interest.

Having this information at your fingertips is critical for your company's finances. Ask yourself these questions about your business:

-        Are there any trends of overdue payments or delayed payments?
-        Are any payments being held up?
-        How much are you paying in interest?
-        If there are unpaid balances, have you considered paying them off early to save money on interest costs?

When you are managing a business, it’s important to stay organized. One example of this is the accounts payable aging report in QuickBooks Online, which will let you view your payables status and the amount that the business owes over various time frames. It simplifies everything into a single document—or spreadsheet, as we would usually call it—that shows you how much money your business owes.

Not sure where to start?

Get in touch with us today. We can help you find the answers to these questions and have the correct information to make intelligent business decisions.

Looking for bookkeeping in Ottawa? Learn more about our services and our team.


Author Profile

Sean Duffy
Sean Duffy
Senior Manager
sduffy@welchllp.com
613-236-9191 Ext:155

Sean Duffy is the Senior Manager at Elevate by Welch, with more than 10 years of accounting & finance experience. Sean is one of the very few cloud-based accountants who have an in-depth knowledge of Quickbooks Online as well as desktop applications. His familiarity with these cutting edge technologies allows his clients to benefit from a more streamlined process while still maintaining secure data backups and information security protocols.
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