You process payables by writing checks or making debit transactions against your operating accounts. There are two different methods you can use to create checks:
Demand Check Writer: You use the Demand Check Writer to print and record a check – all in one step.
2-Step Method for Payables: In this procedure you (1) add a payable and then (2) write a check against the payable.
Both methods give you the same results – printed and recorded checks. However, there are three differences you need to consider before you pick a method to use:
(1) The Demand Check Writer is limited in that you cannot expense more than one account. If you need to charge against more than one account (for example, monthly credit card charges), use the 2-Step Method for Payables.
(2) If you need to control your cash flow, use the 2-Step Method for Payables. This will allow you to enter and post the payable, but you won’t have to print the check immediately. For example, you can wait until after you received payment from a client.
(3) Use the 2-Step Method for Payables when multiple expense accounts are involved.
You can also process payables with credit cards or process payables for credit card payment.