QuickBooks vendor payments can be made using Online Bill Pay in QBO or through Desktop as the digital transformation in fintech progresses. Accounts payable automation apps with integrated third-party add-ons use advanced technology to improve efficiency. With Intuit QuickBooks payroll, QuickBooks provides direct deposit for vendor payments to independent contractors. ACH is a convenient payment method. Here you will read about how to pay vendors in QuickBooks and if you want to know more about QuickBooks features like how to set up credit card payment in a QuickBooks account and manage to intuit online account then click on these links.
The Benefits of QuickBooks Vendor Payments
QuickBooks uses electronic ACH to pay bills, which reduces the use of paper checks. An accounts payable automation app for QBO adds fraud control, batch global vendor payments in multiple currencies, automatic payments reconciliation, and enhanced reporting features. As the preferred vendor payment method, you can select debit cards, credit cards, or PayPal.
How does QuickBooks Pay Vendors?
QuickBooks handles basic vendor bill payment tasks in QuickBooks Desktop and Online Bill Pay in QBO for an additional SaaS third-party subscription fee.
The following are the steps for using Online Bill Pay in QBO and paying vendors in QuickBooks Desktop:
- Configuring ACH bank transfers for vendors
- Making vendor credits for use with vendor payments
- Paying vendors with checks before bank account verification is complete
- Making vendor payments via check or ACH electronic bank transfer.
QuickBooks Online Bill Pay to Vendors
QuickBooks Online Bill Pay does not support recurring payments to vendors, but it does support bill reminders that you can pay. Vendor credits are not synced. A third-party integrated QuickBooks payables automation app with more bill payment features, more vendor payment methods, and automation of approval workflows is available.
CPAs and bookkeepers can use QuickBooks Online Accountant to subscribe to SaaS third-party add-on apps for each client’s QuickBooks account.
How to Set up ACH Bank Transfers for Vendors in QuickBooks Online Bill Pay
Wait two non-holiday business days after entering the vendor’s bank account to verify the vendor’s bank account with a penny micro deposit from QuickBooks. This process of adding a vendor for ACH bank transfers is referred to by QuickBooks support as “a private bank add.”
If you need to pay the vendor right away, schedule a bill payment by check before adding their bank account to avoid the verification delay. If you add the bank account first and verification is incomplete, QuickBooks sends a check payment rather than an ACH payment.
ACH payments can be made the following business day after the vendor’s bank account has been verified.
How to Make a Vendor Payment in QuickBooks Online Bill Pay
When you make a vendor payment in QuickBooks Online, a bill is created in the background (you don’t need to enter bills), it is synced back to QuickBooks Online, and the payment is initiated. According to QuickBooks Online:
- “Select the Bill to pay online widget from the dashboard.
- Choose the Make a payment option.
- Enter payment information for the vendor, such as:
- Name of the vendor
- Amount
- Memo
- Bill Number
- Account for payment
- Account (from chart of accounts) (from chart of accounts)
- Description
- Customer
- Class.
- Choose a delivery method.
- Choose between a bank transfer and a check.
- Choose a process date for the check and, if necessary, edit the vendor information.”
