Welcome to the Fit Small Business Xero training course. In this lesson we're
going to cover how to pay bills with a check in Xero. To follow along with me,
log in to your Xero account now, or click the link below this video for a free
30-day trial of Xero. You can also click this link to access our full Xero course
and other helpful resources. Let's get started.
In order to ensure your accounts payable balance is always up to date,
it's important to not only enter all of your bills into Xero but also to record the
payment once it is sent. In the previous lesson, we showed you how to mark bills
paid online using a debit card or cash. You can click here to access this lesson.
In this lesson we will show you how to pay bills by printing a check directly
from Xero. You can pay your bills by printing the check directly from Xero
or writing a check manually and recording the payment in Xero.
The advantage of printing a check from Xero is the transaction is automatically
recorded and the bill is marked as paid for you. To pay bills in Xero you want to
go ahead and click on the accounts button here and select purchases. Bills are
grouped into four categories: draft, awaiting approval, awaiting payment,
and overdue. Bills that fell into the awaiting payment and overdue categories are ready
for payment. To learn more about the different bill categories check out our
lesson on how to create a bill. You can click here to access this lesson.
So we'll go ahead and click on the awaiting payment category. And as you can see here
a list of bills that can be authorized for payment are listed here. To select a
bill you simply want to go ahead and check the box here in this column.
And once you've made all your selections you can simply go ahead and click the make
payment button here. In this screen we have an option to make our payment by
check, by batch payment, or we can pay with Bill.com.
So let's talk about the batch payment option and the pay with Bill.com
Since we are going to pay our bills via check in this lesson. Batch payment:
using batch payments allows you to bundle multiple bills into one
transaction. So you can export the file and upload it to your online banking
service for payment. Your bank will pay the bills included in the file.
Please note that you should check with your bank or financial institution to see if
they accept batch payment files. Keep in mind that Xero does not charge for this service.
However, you may incur additional fees from your bank or financial
institution. Tou can find more information on how to get started with
making batch payments by clicking the link below.
Paying with Bill.com: Bill.com is a full-service payment solution for both
accounts receivable and accounts payable. It integrates seamlessly with Xero and
automatically syncs with Xero to keep your accounts payable balance up to date.
You can learn more about Bill.com by clicking the link below. So let's select
our pay by check. Here is the screen that we need to provide some additional
information before we can actually print checks. So starting with the bank account
field. From here you want to select a bank account that the checks need to be
drawn on so we will select our checking account. If the bank account has not been
set up you will need to do that first and then return to this screen to
complete the check details. In the how to set up bank feeds we walk you through
how to set up your bank account. You can click here to access this lesson.
Check numbering: click this button to enter the starting check number that you
would like to use. Please note you will need to do this the very first time that
you print checks from Xero. You will also have to do this if you are writing the
check from a manual checkbook. After you print the first checks,
Xero will automatically increment the check numbers for all future payments. So based
on the check numbering that you selected here, Xero will automatically assign the
check numbers in this column here. So if this information is incorrect, go back
and revisit the check numbering section. The pay to field: this information
will automatically populate from the bill that you are paying. If you need to
change the payee you can do so by simply typing directly in this field.
The address information is automatically populated as well from the bill. If you
need to change this information you can actually click in this field and make
the necessary changes. Date: this date in this column should be the date that you
print the check, also known as the check date. Memo: the
memo section is optional. However it is a good idea to indicate an account
number or any additional information that would help the supplier correctly
apply the payment to your account. The amount column will automatically
populate from the amount that was on the bill. If you want to pay a different
amount and you can do so by typing directly in this field the amount that
you would like to pay. Check style: you can customize the information that
appears on your checks including changing the font, and adding your
company logo. You can find the details on how to set up a check style by clicking
the link below. Let's talk about the check output
options here. So export check CSV: if you export the check information to a CSV
file, you can export it into VersaCheck to print. VersaCheck is a check creation
program that integrates seamlessly with Xero.
Save and print PDF: you can save the check and print them from a PDF file.
Please note you will need to align your printer and do a
test print on blank paper before using your actual check stock. Please also note
to make a copy of a real check on paper and use that to adjust the
alignment before you print on real check stock. You can find more information on
how to align your printer by clicking the link below. Be sure to also use
compatible check stock. Which is explained more in the link below as well. And you
can use the save option here if you want to print the check from Xero later on,
or if you want to manually write the check from your checkbook. The cancel button
here: you want to click that if you do not want to proceed with paying these bills.
That wraps up the lesson on how to pay bills with a check in Xero. To access
our full Xero course or any of the other lessons in this series click this link.
You can also find a link below this video for a free 30-day trial of Xero
If you have feedback about this course or if you have any questions,
please leave a comment below. Also don't forget to subscribe.