How to Manage Accounts Payable in QuickBooks Premier

Managing accounts payable well is vital for small business success. QuickBooks Premier provides powerful accounts payable tools to track vendor bills, payments, credits, and expenses. Follow these best practices to optimize AP workflows.

Set Up Vendors

To pay bills, first create vendor records in QuickBooks 2024 Premier for each company you purchase goods or services from. Under Lists, select Vendors then New Vendor.

Enter vendor information like name, contact details, payment terms, bank accounts, and 1099 status. Organize vendors with types like Supplier, Subcontractor, Utility, etc. 

Complete vendor setup is crucial for proper payment tracking.

Enter Bills

When you receive invoices from vendors, enter them into Premier as bills to record the liability. Go to Enter Bills and select the vendor. Enter the date, amount due, account, and details. 

Save the bill - this updates Accounts Payable. Set reminders for unpaid bills to avoid late fees. Attach scans of paper bills or sync electronic invoices.

Pay & Print Checks

To remit payment, use Pay Bills in Premier to select open bills, set the payment date, assign the bank account, and save. QuickBooks deducts the transaction from your checking account balance.

Print checks directly or handwrite them. Mail payments before their due dates to capitalize on vendor discounts and maintain good standing.

Use Purchase Orders

Create purchase orders in Premier for prepaid orders with vendors. Under Purchase Orders, select the vendor, enter items to purchase, quantities, cost, and delivery dates.

Email the PO to vendors or print it. When shipments arrive, use the PO to receive the items into inventory or as expenses.

Take Discounts

If vendors offer discounts for early payment, enter those terms when creating the vendor like 2% 10, Net 30. The discount will calculate based on the payment date when paying bills.

Always take discounts to maximize savings, improve cash flow, and increase ROI on purchases. Set reminders to pay bills 1-2 weeks before their due date.

Manage Recurring Bills

For bills paid routinely like rent, subscriptions, or loan payments, use Premier's memorized transaction capability. Under Lists ➞ Memorized Transactions ➞ New Memorized Transaction, enter the bill details once.

Schedule automatic reminders to enter the memorized transaction on a recurring basis, saving time on rekeying. Recurring bills maintain consistent AP workflows.

Apply Credits 

If vendors issue refunds or credits, enter those in Premier to reduce the amount owed. Under Enter Bills, choose the original bill, enter the credit/refund as a negative amount, and apply it.

The credit will lower your AP balance for that vendor. Email or print credit memos to vendors when issuing customer refunds as well.

Track Expenses

As you enter and pay bills in Premier, the costs get categorized into expense accounts like Office Supplies, Equipment Rental, or Contract Services for reporting.

Review expense reports monthly to analyze spending. Set budgets by account and run Budget vs. Actual reports. Tight AP management controls costs.

Reconcile AP

Close each period by reconciling Accounts Payable to match the general ledger. Resolve any discrepancies from unrecorded transactions or unpaid credits immediately to prevent issues.

Reconciling ensures all vendor obligations are tracked properly. Maintaining accurate AP prevents duplicate payments or missing key bills.

Streamline AP Workflows

QuickBooks Premier offers ways to optimize accounts payable workflows:

- Capture bills by emailing AP@yourdomain.com

- Automate bill delivery from vendors 

- Approve bills online with controlled access for reviewers 

- Pay bills online by clicking Pay Now links on emailed bills

- Run reports on discounts taken, pending bills, and aged payables

Work smarter using Premier's accounts payable tools. Contact QuickBooks Premier support number to learn more time-saving AP tips.

Organize Bill Due Dates

Don't pay bills blindly. Assign due dates when entering them into Premier. Then use the Payment Calendar to view upcoming dues and pay accordingly.

Prioritize bills nearing due dates, largest amounts, and those with discounts. Don't leave payments to chance or bills could slip through cracks.

Staying on top of due dates keeps your accounts payable liability accurate and prevents problems with vendors.

Upload Receipts

Reduce data entry by uploading paper receipts and external files into Premier to create bills faster. Name files clearly by vendor and date.

Use your mobile device to snap photos of receipts while purchasing items. Drag and drop files right into Premier and the OCR tool will scan and attach key details.

Digitizing paper documents also enables easier search and access to records.

Automate Recurring Payments 

Premier lets you schedule recurring payments for ongoing AP bills so you don't have to manually enter them. 

Simply set the frequency and number of times to pay the bill using the Memorized Transaction option. Automated payments are sent on time without any extra work.

Automatic recurring payments make your accounts payable process highly efficient.