Editor's Note: Our editorial feature topic for January is Making Payments; we'll post numerous articles dealing with accounts payable and other payment topics for QuickBooks Online and QuickBooks Desktop. Look for these features interlaced with other regular and new bylines from our contributing authors.
Using a current version of QuickBooks Desktop Plus (QBDP) or QuickBooks Enterprise, you already have a built-in Melio app to schedule and pay bills faster. The Melio Bill Pay app allows users of these QuickBooks Desktop products to pay vendor bills directly from inside QuickBooks.
You can also schedule vendor payments using a debit card, a credit card, or EFT from your bank and send payment to your vendors. In addition, you can choose how your vendor receives payment, either as a deposit into their bank account or via a check, so that you can pay them according to their preferences.
Your ACH and debit card transactions are free, but there's a 2.9% per transaction fee when choosing a credit card for payment. In addition, if you select the optional 'Fast ACH' or 'Fast Check' expedited services, there will also be fees.
In other words, this feature lets you:
- Save time by scheduling and paying bills in QuickBooks, automatically marking the bill paid and notifying you once the money is sent.
- Gain financial flexibility by paying vendors from a card or bank transfer and sending the money via physical check or bank transfer.
- Keep your vendors happy by customizing their payment method preferences for future payments.
Using the QuickBooks Desktop Melio Bill Pay App
Note: Using a current version of QuickBooks Desktop Plus or QuickBooks Enterprise, you must be the Company Admin and be signed up with your One Intuit Account to use this feature.
- From your Enter Bill screen for the vendor bill you want to pay, select "Schedule online payment", or
- From the QuickBooks "Pay Bill" screen, select any vendor bill and keep the Payment Method drop-down set to 'Schedule online payment,' then click 'Pay selected bills' to proceed.
- At the Schedule Online Payment landing page, click 'Continue' once you have read the information concerning this feature.
- Begin setup by indicating your payment methods and vendor's payment preference. Then, choose from Bank transfer, debit, or credit card (as shown below). QuickBooks remembers your selection(s) for future transactions and asks you to confirm your pre-filled preferences.
- Select your payment method and add your bank/card details.
- If you choose to add your bank, you can connect instantly by securely logging into your bank. Alternatively, you can connect to your bank by posting two micro-deposits, but this verification can take from 1 to 2 business (banking) days to complete.
- Numerous Banks are available for the instant connection option, and the app looks for banks in your area based on your Company's location.
- Even if your bank isn't listed you have the option of connecting with your bank manually by entering your bank's routing number and your bank account number.
- If you decide to pay using a credit card or debit card rather than your Bank Account, you must add your card details.
- Choose how your vendor will receive payment. Select either Bank transfer (ACH/EFT) or a paper check. Both of these methods are free. You have the option of asking your vendor for payment details if you are uncertain how your vendor would prefer payment.
- If you have a check sent to your vendor, you must provide additional information. Verify the name you want to appear on the check, the mailing address, and other details.
- You can schedule the vendor payment for a future date. Review and confirm your payment.
- Funds will be deducted from the designated bank account or charged to your debit or credit card on the future date you set for payment. The Bank account or Cardholder will receive an email when the funds are processed.
To learn more about this feature you should watch the YouTube video, 'How to pay bills online with QuickBooks Desktop' to see this feature in action.
Overall Impression of the App
How much more straightforward, integrated and easy to use could you want this? The set-up is built into the first use right within the QuickBooks integration. Like so many things that are integrating through the Intuit Plus network with Desktop you hardly know that you are transitioning from desktop to cloud connectivity.
When I first tried this out I thought why would I use this, then I thought, why wouldn't I? Even if I am going to use checks, why not let them pay the cost of the check, of printing the check and mailing the check, especially since it is 'free' to me.
Now, I find myself thinking, accounts payable couldn't been more simple or flexible than this.
You won't find this app in the QuickBooks Desktop App marketplace, but it's important that everyone using QuickBooks Desktop knows that it is integrated into the product. You will find Melio in the QuickBooks Online App Store here.
Melio also offers a version that is designed for Accountants and Bookkeepers that might interest many of you. It has a dashboard for your clients (shown below), and it will connect to both QuickBooks Online and QuickBooks Desktop. You can manage A/P and A/R with this special version. You can find out more about that Accountant/Bookkeeper version at the Melio website.
Acknowledgments and Disclosures:
Graphics and content used within this feature were derived or adapted by the author in part from Intuit QuickBooks source materials, including the QuickBooks Desktop Website and the QuickBooks Desktop Support Website, as well as the QuickBooks Desktop Product and the QuickBooks Desktop In-product Help feature. Additional graphics and content were derived or adapted from the Intuit QuickBooks App Store Melio landing page and the Melio website including the Melio Accountant webpage. Adapted source materials published within this feature by Insightful Accountant are for educational and product promotional purposes only.
QuickBooks, including QuickBooks Desktop Plus, QuickBooks Enterprise and QuickBooks Online, as used herein, refer to one or more registered trademarks of Intuit, Inc., a publicly-traded corporation headquartered in Mountain View, California.
Melio, as used in this article, refers to one or more products developed by or in cooperation with and registered to Melio, a privately held company headquartered in New York, New York.
Any other trade names used or displayed herein that refer to registered trademark products are held by their respective owners. They are referred to or displayed for informational and educational purposes only.
This is an editorial feature, not sponsored content. None of the vendors have paid Insightful Accountant, or the author, remuneration of any type to be included within this feature. The article is provided solely for informational and educational purposes.