Quick Books has done a great job to make a bilateral accounting accessible to many. But sometimes people still get confused over terminology. One area of confusion is the difference between Accounts and bills in QuickBooks. In day-to-day of our relations we can use these terms interchangeably, but in QuickBooks they mean entirely different things.
accounts in QuickBooks
“accounts” are viewed by following this link:
Customers> Create accounts
“invoice” is sent to the customer. They take revenue (sales) of books, and they take customers owe the amount shown on the invoice.
There is a payment document linked accounts, which customer payments are recorded. Recording payments in this display the customer owes less money, and also records that more money has been purchased. The payment screen for customer accounts is called “payments” and is accessed by following this link:
First, the accounts by creating accounts screen. Then, as the payments received from customers, payments are applied against the accounts by using the payment screen.
Bills in Quick Books
“Bills” are viewed by following this path:
Vendors> Enter Bills
“Bills” received from vendors. They take costs (or cost or inventory), and they take the company owes the seller the amount of money that appears on the bill.
There is a payment screen for accounts where payments made vendors listed. Recording payments in this document shows that the company owes the seller less money, and also a sign that there is less money by paying the seller. Or, if the seller of the bill was paid by credit card, this screen shows that there are more credit card debt on the books. The payment screen for vendor bills is called “pay the bills” and is accessed by following this link:
Vendors> paying bills
When vendor invoices are received they are entered with the Enter Bills screen . Then, as they have because they are charged with paying bills screen.
Home Confusion, and invoices
Starting with QuickBooks 2006, Intuit added Home Page. Access by following this link:
at home, QuickBooks shows graphically how the money should flow through the company
One aspect confusion. Home Page is where the arrow leaves the Enter Bills, down notes. Although the indicator has a lighter color than the other arrows, if people are not aware of the difference between accounts and accounts, it seems that the accounts should be created after entering accounts. But for most users, this is not the case.
When creating a customer account after Entering dealer Bill
Users only need to create a customer account by entering a vendor bill in one specific example: when there were charges the seller a bill that needs to be charged to a specific client. For example, if there are costs paid (direct transmission through without markup), or other expenses required format, they can be labeled Account in the Bills screen, and put into the account of a particular customer.
When QuickBooks users understand the difference and invoices and how they can be used in tandem, many problems can be avoided.