Bills vs. Checks

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:

  1. I want to know if I owe money and when the bills are due
  2. I want to know when the bill was received
  3. I want to track when each the bill was paid
  4. I receive vendors/subcontractors estimates
  5. I want to track the amount that is billed compared to the estimate
  6. I want to track what phase of the job was completed
  7. I want to know my cash flow
  8. 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.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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