Good question!
In QuickBooks, bills are entered in the Enter Bills window. Enter Bills is used to record a bill or invoice for goods or services that the company plans to pay later. A good example of this is a utility bill that is due in 21 days; most businesses, in order to conserve cash, will record the bill now but pay it later. Not surprisingly, then, using Enter Bills results in QB crediting the Accounts Payable account. Enter Bills is useful because the bookkeeper or accountant can view a list of all unpaid bills by vendor by running the Unpaid Bills Detail report.
Expenses, on the other hand, are entered mainly in the Write Checks window. Write Checks is used to record a bill or invoice for goods or services that has not previously been entered in QB but has already been paid. Although the name implies checks, Write Checks can be used for any cash payment including debit card, electronic funds transfer, and PayPal. A good example of this is a check written to pay for the purchase of office supplies at Staples. In this case, there is no bill or invoice to enter and pay later; instead, the check is recorded as written. Not surprisingly, using Write Checks does not involve Accounts Payable and the transactions do not appear anywhere in the Accounts Payable or Vendor reports.
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