To run a business, every company purchases the raw materials from the vendors to make its product. And also, the company has to pay vendors’ bills on time to improve vendor trust and business reputation. Vendors are also trying to provide good services and improve delivery performance. But to pay bills for vendors, you need to follow a process that removes compliance risk and also records what the company owes to others. So in this blog, we are discussing how to pay bills for vendors, and also learn different ways and their steps to pay bills in detail.
What is the Pay Bills Service?
Pay Bills is a service that allows a business or a person to pay bills through an ACH bank transfer, credit card or debit card, or check. And also, you can determine who gets paid, when, and how much through the bill payment software. It is a safe process where you can pay bills for vendors or any other on time.
What is Vendor Payment?
Vendor payment is an accounts payable process where you pay a seller or a service provider for their goods and services that they deliver to a company. This vendor payment process ensures that vendors get their payment on time and accurately. To run this process, a business needs to follow some steps, such as purchase order issuance, invoice receipt and verification, payment approval, and payment remittance. That process streamlines your workflow and operations, and also helps to grow your business rapidly.
Ways to Pay Bills for Vendors
As you know, vendor payment plays an important role in the small to large business industry. An on-time vendor payment can simplify business operations, protect cash flow, and maintain long-term relationships between vendors and businesses. But some businesses fail to pay bills for vendors on time due to their cash flow problems. To grow the business, vendor management is more important. There are many ways available through which you can pay bills, but not all are safe or easy to handle. So, below we are discussing the easiest ways to pay bills for vendors in QuickBooks.
Pay Bills For Vendors Through Direct Deposit
Direct deposit is the best way to move money faster and simply in business. There, you need only the vendor account details. After entering the details, you can transfer money directly from your account to the vendor’s account on a secure and encrypted path. Below, we are providing detailed steps to pay vendors’ bills in QuickBooks.
- First, check whether your payroll subscription is active or not. If yes, then go forward.
- Log in to Intuit QuickBooks.
- Go to the vendor and open the vendor center.
- Now double-click on your vendor name to select the vendor.
- Then click on edit vendor and choose additional info, and then click on the direct deposit
- After the Payroll Service Account Information opens, click on the Active link
- Then, put the direct deposit pin and click on continue.
- After that, follow the screen instructions to get the confirmation screen.
Now that your direct deposit for an independent contractor is set up, now we are proceeding to the next step how to send the amount.
- Follow the previous steps up to step 4
- Then select additional info and click on the direct deposit
- Now choose Use Direct Deposit for: [Vendor Name] box and put the vendor’s bank account details.
- Select Send confirmation direct deposits to [email address] box that sends confirmation payment mail
- After getting the confirmation, just put your direct deposit pin and done.
Pay Bills For Vendors Through Printed Checks
Now everything has moved to digital, but some vendors demand a check as a vendor payment. QuickBooks can fulfill these demands. You need to follow the steps to print checks in QuickBooks.
- First, set the printer as your check alignment
- Log in to QuickBooks
- Click on the New, and then click on the print check
- Now load the check into the printer
- Then select your checking account
- Now, put the check number in their field
- Then click on preview and print
- Review once all the details and click on print, and done
Pay Bills For Vendors Through Bill Payable Automation
Bill Payable automates the vendors’ bill payments. Here, you need to enter the account details of the vendor and schedule the payment. By this process, QuickBooks sends the reminder for the upcoming due date. This process reduced the risk of late payment and automatically maintains the vendor record.
Pay Bills For Vendors Through ACH Payments
Through ACH Payments, you can transfer money from your business bank account to your vendor account electronically. You can use this option regularly without high transaction fees, and also get your raw materials on time.
Common Mistakes in Paying Bills For Vendors
Finance management is a sensitive thing where a mistake can waste your time, effort, and money. So it is important to know what the common mistakes are that may stop your business growth.
- Paying bills too late or infrequently
- Ignoring bill pay reminders
- Put the wrong account details
- Overlooking transaction fees
- Does not record every transaction
- Not following up on failed payment
Conclusion
Paying Bills For Vendors on time is mandatory in business because that helps to run the business smoothly, manage cash flow, and provide a better supplier relationship. If you run a business, then this article must help your business grow, but remember to reconcile the payments regularly, set clear payment terms, and monitor cash flow around vendor payouts.