Even before we start discussing if you should enter bills or checks, you should understand the difference between Accrual vs. Cash Basis.
Take a quiz and determine whether you should enter a bill rather than a check:
- I want to know if I owe money and when the bills are due
- I want to know when the bill was received
- I want to track when each the bill was paid
- I receive vendors/subcontractors estimates
- I want to track the amount that is billed compared to the estimate
- I want to track what phase of the job was completed
- I want to know my cash flow
- I would you like to see reports for all the above
If you answered yes to one of the questions then you SHOULD enter a Bill.
Bills: Entering and paying bills is a two step process. It takes only few seconds more to pay your bills. And with online banking you save time and almost save $2.00 a payment. View your reports on accrual basis.
Checks: As writing a check is one step process, you can still save time and save $2.00 a payment by using online banking. View your reports on cash basis.
I will let you decide whether you should enter bills or checks in QuickBooks.