In order to “clear accounts payable in QuickBooks,” you would need to go through the following steps.
If you are an entrepreneur or small business owner, you know that keeping track of your finances is a critical part of running your business. One way to do this is to use an accounting program like QuickBooks. In QuickBooks, you can track all of your accounts receivable and payable items. This makes it easy to identify which expenses are associated with which customers. Additionally, QuickBooks can help you manage your cash flow and keep track of your overall financial health.
How to Clear Accounts Payable in QuickBooks
Accounts Payable is a process where businesses pay their suppliers. One of the great features of QuickBooks is its Accounts Payable module. This module allows businesses to easily manage their accounts payable transactions.
Step 1: You would need to first create an account to clear your payables
- Login to your QuickBooks accounts and click on the lists menu.
- Select the chart of accounts tab and navigate from Accounts to New tab.
- Income >> Continue.
- In the account, the name section enters the name as Clearing.
- Now hit Save & Close.
Step 2: Now write a journal entry to write off your existing balance
- Click on the Company tab >> Make General Journal Entries.
- Enter the Date.
- Now enter your transaction. If you have accounts receivables then you should credit the balance and if the payables then debit them.
- Add the name of the customer and hit save and close.
Step 3: Apply the Journal Entry to the relevant job
- Customers >> Receive Payments.
- Choose the invoice and head over to Discounts and Credits.
- Select the credit amount under the credit link and hit done.
- Click save to save your changes and close to exit the window.
Step 4: Now create an entry to get the balance to the new computer
- Company >> Make General Journal Entries.
- Click on the Date tab to enter the required date.
- Now debit the accounts receivable and credit the clearing balance.
- Click Save and click Close.
- Now there shouldn’t be any balance left.
If you want more info on how to clear accounts payable within QuickBooks accounting software then you can talk to us. Our QuickBooks Experts Consultant team will assist you online and get your queries solved within no time.