Find out what is an invoice payment, how to pay QuickBooks invoice on time with different payment methods.
Quickbooks is one of the best accounting software to fulfill your basic accounting needs. This software allows you to create, send and keep track of your invoices for smoothly managing your business operations.
If you’re a business owner, it’s crucial to understand how to pay the invoices that your supplier sends. You need to pay the invoice properly on time for the long-term success of your business. If not, it can lead to late payment fees. As a consequence, it can adversely affect your relationship with the supplier.
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What is an Invoice Payment?
It is a payment sent by customers (business) to suppliers (vendor) against the services and products.
How to pay QuickBooks Invoice on time?
In the UK more than half of the UK’s small businesses make late invoice payments, which has resulted in £23.4 billion on the heads of small and medium-sized businesses. This late payment negatively affects the cash flow of the businesses which causes instability in the business operations.
Follow these steps to pay invoices to your suppliers on time:
- Go over the invoice right after receiving
- Create a payment reminder to avoid late payments
- Select a suitable payment method
- Automate the payment process
- Try to get the early payment discount
Common Methods for Invoice Payments
Have a look at the pros and cons of every payment method and choose the one that suits your business needs. Here is the list of invoice payment methods using Quickbooks:
- Cash Payment
- Cheque payments
- Online payment via debit or credit card
- Direct debit
- Mobile payment
- Bank Transfer
- Automatic payments
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How much time do you get to pay invoices?
There’s no standard time to pay invoices as it varies as per your supplier and the industry you deal with. The payment term can start from a week to 120 days. The average payment period in the UK is typically 20 days after the invoice has been sent. If there is no invoice date mentioned, then you have to pay the invoice within 30 days, as per the law of the UK government.
Terms of Invoice Payments
The terms of invoice payment typically include:
- Due date of the payment
- Method and currency of the payment
- Details about early payment discounts/ late payment fees
- Information of the payment plan like installments, etc
How to Process an Invoice?
You must take some pre-payments steps after getting the invoice. This process is done by the payments team or account payable team in large organisations, whereas in small businesses, owners handle it themselves.
These are the simple steps to process an invoice:
- Collect the invoice from a supplier
- Submit the invoice internally
- Put the data in your accounting software
- Review and accept the invoice for payment
- Pay the invoice or automate it
Quick Sum Up
To sum up, now you have got enough information on how to pay Quickbooks invoice. The payment process via Quickbooks is quite simple and easy. You just need to consider the invoices of the suppliers seriously to avoid trouble. The option to automate the invoice payments with Quickbooks is a great option if you pay the invoices regularly. By following these steps, you can build good relationships with your suppliers for the long-term sustainability of your business.
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Disclaimer: This blog provides general information on paying invoices through Quickbooks.