Welcome to QuickBooks Online for Nonprofits.
I am Ufuoma Ogaga, the owner and Advanced ...
Certified QuickBooks ProAdvisor of Goshen ...
Bookkeeping & Consulting.
I am also a financial controller serving nonprofits and ...
service-based businesses by helping them to increase ...
profitability one mission at a time.
In today's tutorial, I will show you how to create ...
a vendor in QuickBooks Online.
Some guidelines to keep in mind when creating vendors ...
and entering expenses in QuickBooks Online are:
1. Don't create a vendor for ...
each one-time expense such as restaurants or gas stations ...
or parking lost or parking lots. Use one generic name for all ...
restaurants. Use one generic name for all ...
gas stations and use one generic name for all parking ...
lots. And then,
use the memo/description field to add the actual ...
vendor's name when entering the transaction in QuickBooks Online.
2. When creating a vendor in ...
QuickBooks Online, enter all their contact details ...
such as the billing address, email address,
phone number, website,
billing account number, billing terms and the tax ...
information if they are a service vendor subject to IRS ...
definition of a contractor for 1099 purposes.
Use the attachment section to add copies of contracts and ...
W-9 forms. Use the notes section for any ...
special notes to remember for that vendor.
3. If you have employees that ...
you do reimburse, add a V to ending of their last ...
names in the vendor center to differentiate them from your ...
employee list. 4.
The final tip I leave is: make sure you add a vendor ...
name to all expense transactions that you record ...
inside of QuickBooks Online. Never leave the vendor name field blank.
Now that you understand the guidelines for creating a ...
vendor and recording expenses in QuickBooks ...
Online, let's switch to QuickBooks ...
Online to begin the demo.
This my QuickBooks dashboard homepage.
To access the vendors list, click on the expenses tab at ...
the left navigation bar, then select the vendors tab.
This colored section is known as the money bar.
The money bar shows you the purchase order you have ...
created, overdue bills,
and bills that have been recently paid in QuickBooks ...
Online. Clicking on any of these ...
boxes will open a filtered list. So if you click on the overdue ...
bills box, it will show you vendors that ...
have open bills inside of the system.
To create a new vendor, click the green New Vendor ...
button at the top right of the screen.
QuickBooks will open the vendor entry screen.
Here you can add a vendor's full contact details using a ...
physical copy of an existing bill or prior bill.
I am going to add my firm as a new vendor by filling out all ...
the open fields. One cool thing about ...
QuickBooks Online is that when you start typing a ...
vendor's name in the system, it will try look up their ...
information in the duns and bradstreet business database ...
and auto populate all of the contact information fields for ...
you. Since I exist in that database,
QuickBooks will auto populate my firm's ...
information. Just pay attention to address ...
field. Make sure the address field ...
matches the information on your prior bill.
You don't want to send a check to the wrong billing ...
address. I am going to fill in all the ...
missing information that system did not auto populate.
You also want to make sure the information you enter ...
here for a service based business especially a 1099 ...
contractor matches their completed W-9 form.
You can also print a check with a different name than ...
the one that is displayed. I like my clients to make their ...
checks payable to my firm's name instead of my personal ...
name so I will uncheck the print check as box and select ...
my firm's name or reenter it.
If you have a designated account number on your bills ...
and billing terms from your vendors,
enter them in account number and billing term ...
fields. I don't have any of those so I ...
will leave these two fields blank.
The business ID No. field should be used to ...
record a social security number or federal ...
identification number from a completed W-9 form.
This is the form that you will typically request from your ...
service based vendors or contractors to complete when ...
they engage with your organization.
I highly recommend collecting a W-9 form from ...
your all of your service-based businesses that meets the ...
IRS definition of a contract before you make the first ...
payment to them. This will save you the hassle ...
of having to chase people down at the end of the year.
It will also prevent you from having to withhold 24%
of their income as taxes to remit back to the IRS at the ...
end of the year.
Since I am an independent contractor,
I will enter my FEIN number here and also check the box ...
that says "Track payments for 1099".
Checking this box allows me to be able to run a 1099 ...
transactions detail report at the end of year to prepare my ...
1099s in QuickBooks Online or provide to a CPA or 3rd ...
party payroll provider to prepare 1099s for me.
I like to use the notes field to document things like ...
summary of contract terms, etc.
or any else that can't fit in any of the fields mentioned ...
before. In addition to that,
I like to also drag a completed W-9 form into the ...
attachment section.
Review everything you just entered to make sure it ...
matches a copy of your bill, then click save to exit the ...
vendor entry screen. In the Vendors center,
you can scroll down to find my firm's name we just ...
added, or you can use the search ...
bar at the top to search for it. That is a quick and easy ...
tutorial on how to create a vendor inside of QuickBooks Online.