Quickbooks is designed to work in a specific manor. If you follow the paths on the Home page, all the accounting will be accurately taken care of by the program. If you do not follow the process map on the Home page, mistakes could occur. For instance, if you enter bills and then enter the payment of that bill in the check register, your expenses will be recorded twice. This occurs because the system creates an Accounts Payable balance when you enter the bill and the expense items in the bill are recorded as expenses. When you use the check register to record a payment, it will create another expense item equal to the amount you paid. Thus, the expenses will be double counted.
The correct procedure to pay bills is to click on the "Pay Bills" button and follow the instructions. You have only two choices: to pay by check or credit card. When you pay by check, you can have QB print checks for you. This is the easiest way as QB automatically records the check in the register and reduces the Account Payable balance for that vendor. If you use a credit card, your Account Payable to the bank issuing the card rises by the amount charged and the Account Payable for the vendor is reduced by the same amount. In total, Accounts Payable does not change.
Dr. Horan, Author
Career Wall Street Professional, 40+ years of experience in analyzing and forecasting income and cash flow statements and balance sheets for businesses in variety of industries. Strong skills in business planning, forecasting and risk assessment as well as mentoring. Strong modeling and database management skills in, Excel, Access, MS Office and QuickBooks used for 20 years.