Recording recurring payments can get tricky, especially when it comes time to input these transactions into your books. Luckily, there are some easy ways to do this! Here we will discuss three methods for recording recurring payment receipts in Quickbooks.
Note that not every business owner or accountant uses all of these tools, but they are very helpful if you do. By being familiar with them, you’ll know what tool to use in case someone else makes a mistake while processing these expenses.
So let’s dive in!
Step 1: Find Out What Item Code To Use For Your Reoccuring Payment Expenses
Mostly, an item code is used to identify a recurring billing transaction. This seems simple enough, right? Wrong!
Not every company uses the same terminology to describe their recurring bills. Some call theirs a “subscription,” others refer to it as an “annual membership,” and yet other companies just use the word “billing cycle” or something similar.
Whatever term they use, none seem to agree upon one thing: An item code must be made up of two parts. The first part is the vendor name, and the second part is the item number.
It is important to note that some vendors drop the last digit of their item number. So instead of using the normal example of “Microsoft Office 365 Pro Plus Annual Membership,” they may only use “365.
Recording payments can be tricky, especially if it is your first time doing it. The most common way to do this is by using an app or software called quickbooks. You can use their apps or website to identify what type of payment you want to track and how.
For example, let’s say you receive monthly car insurance premiums. You will need to know where your policy is being paid (the carrier) as well as who the person paying you is (the payer).
You will also have to verify their identity so you can accept credit card transactions from them. This means looking up their driver license, social security number, etc.
After all this, you can choose to either create a new transaction entry in quickbooks or edit an existing one.
The next step is to open the recurring payer in your bookkeeping software, typically via their app or website. You can do this by going into its account as a customer and then clicking “View Customer”. Then you will be able to choose whether it is an individual transaction or a business transaction that has resumed.
After that, you can either add it directly under one of your accounts such as Payroll or Bank Accounts, or if it already exists, simply click Add A Transaction Line and fill out the necessary fields.
It is your choice what account you want to record this money into, it does not have to be your business’s main account. You can choose to put the money into your savings or mortgage account, for example.
You do not need to include any details about the transaction when recording it. That is up to you!
After recording the recurring payments, click Save & Close at the bottom of the page to save changes.
And don’t forget to check out our other tips here! We hope you enjoyed reading our article.
A second way to organize recurring bills is by creating an entry in your accountant’s or business owner’s ledger. This can be done through various software that keep records, such as QuickBooks.
You will need to create an account for each bill you want to track, along with some identifying information about the company who sent it and how much it cost them.
This includes what time frame it should be tracked in (weekly, monthly, yearly), when it should start tracking its spending, and whether there are any exceptions to this rule (for example, if and when you do not have money in your account, it cannot record regular purchases).
The first step towards recording all of your recurring transactions is by running a report. You can do this through the Intuit® website or app, as well as via mobile apps that sync with Intuit.
On the Intuit website, you can go into Accountant Tools and select Reports. Then, under the My Business Settings category, you can choose Inventory Transactions to view all purchases for the past month.
You will then have the ability to sort and filter these records to make it more efficient to find what you are looking for.
Recording recurring payments can get tricky, especially if you are doing it for the first time. There are several ways to do this in QuickBooks, but none of them seem totally clear or easy. Luckily, there is a way that seems to work every time!
The most common method is creating a new template called “Recur”. You can then use this newly-created template to record all your recurring payment transactions.
By using this approach, you will be able to easily re-create past records as well as create new ones very quickly.
In the next step, you will link your recurring payment to an existing template in Intuit’s system. To do this, go back into Settings and then into Recurly under Integration. Here, look for a button that says Create New Template with Connection. Click it to start the process of creating a new template!
Once you have done this, you can now click Save Changes and test out your settings by going through one of your recurring payments as if you were actually making a sale.
It is very common for small business owners to pay extra bills using credit cards or other payment methods.
Many times, these recurring expenses go unnoticed because you do not have an easy way to record them in your books.
By adding this information into your bookkeeping system now, you will be able to accurately track all of their spending from then on!
There are several good ways to manage your money, but one of the most effective is keeping a close eye on how much debt you have. In fact, many experts suggest that before you even consider buying anything else, you should make sure you have enough cash to buy food and shelter for at least two months.
This is why it is so important to keep tabs on all of your financial transactions, including monthly utility bills, subscription services like Netflix, and loans or credit card accounts.
