QuickBooks Online

How to Set up Recurring Bills in QuickBooks Online

Company owner checking their bills

Monthly rent, utility payments, and subscriptions can quickly pile up, causing many businesses to struggle with managing their recurring bills. QuickBooks Online offers a solution to this challenge through its recurring bills feature, which allows businesses to automate the entry of recurring expenses.

In this article, we’ll explain how to set up recurring bills in QuickBooks Online and provide some scenarios in which this feature is beneficial. 

When to Set Up Recurring Bills

Setting up recurring bills in QuickBooks Online can be useful in various scenarios, such as:

  • Monthly Bills: Regular monthly expenses such as rent, utilities, and subscriptions are prime candidates for recurring bill setups. This ensures accurate and timely recording of these essential costs.
  • Quarterly or Annual Payments: If your business deals with quarterly or annual expenses like insurance premiums or membership fees, recurring bills can prevent these important payments from slipping through the cracks.
  • Loan Payments: For businesses with outstanding loans, automating loan payments can help you stay on top of repayment schedules without the hassle of manual entries.
  • Contractor Payments: If you have ongoing contracts or service agreements, setting up recurring bills can simplify the process of paying contractors or freelancers.

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How to Set Up Recurring Bills

Step 1: Navigate to Recurring Transactions. From your QuickBooks Online dashboard, locate and click on the cog wheel icon (settings) located in the upper-right corner of the screen. Then, select Recurring transactions under Lists in the popup window. 

Step 2: Select Bills as the Transaction Type: Next, click on the green New button and then select “bill” as the transaction type. Click OK to continue.

Select the type of transaction you wish to create

Step 3: Provide the required details in the Recurring bill form, including the template name, vendor and the type of recurring bill (e.g. scheduled, reminder, or unscheduled. Also, set the frequency of the recurring bill – monthly, quarterly, annually, etc. You can also define the recurring bill’s start and end dates (if applicable). You can also choose the day of the month you want the bill to be created and elect the expense account to which the bill will be assigned.

Recurring bill screen in QuickBooks Online

After entering the initial details for your recurring bill template, you can scroll down the page to reach the Categories and Items sections. This is where you can provide further specificity about the expenses being recorded.

Bill screen in QuickBooks Online

Step 4: Save the Recurring Bill Template. Once you’ve filled in all the necessary details, review the information to ensure accuracy: Double-check the vendor, account, amount, and other specifics to avoid any mistakes.

If everything looks correct, click the Save template button. Your recurring bill template is now saved and ready to automate your bill entries.

Benefits of Recurring Bills Feature in QuickBooks

The recurring bills feature in QuickBooks allows businesses to automate the entry of regularly occurring expenses, offering the following benefits:

  • Time Savings: By setting up recurring bills, businesses can significantly reduce the time spent on repetitive data entry. This time can be redirected toward strategic planning and core business activities.
  • Consistency and Accuracy: Automation minimizes the risk of data entry errors, ensuring that bill details are consistently and accurately recorded each month.
  • Reduced Oversight Risks: With automated bill creation in QuickBooks, the chances of missing payments are dramatically reduced. Businesses can maintain strong vendor relationships by ensuring timely payments.
  • Streamlined Workflow: Automating recurring bills streamlines the accounting process, improving overall workflow efficiency and reducing frustration associated with repetitive tasks.
  • Real-Time Financial Insights: Automated bills are immediately reflected in financial reports, providing up-to-date insights into cash flow and expenses.

By automating the entry of recurring expenses, you free up valuable time and reduce the risk of errors associated with manual data entry. Whether it’s monthly bills, quarterly payments, or contract expenses, QuickBooks Online’s recurring bill feature is a powerful tool that simplifies your financial workflow, allowing you to focus on other important aspects of your business.

Have Questions? Need Help?

If you have any questions about the features of QuickBooks Online, you can give us a call at 866-949-7267 and one of our experts can walk you through the details. 

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