One of the most intricate business processes is taking care of all your bills and invoices. People often have trouble taking care of these statistics, even for small businesses, and hire outside help. This dilemma has led Bill.com to become one of the most popular online tools today.
This website can help you manage all account payments for your business, no matter the size. While the tool is easy to use, it can be intimidating for some beginners. Hence, we brought you an article to clear all doubts. This article briefly explains what Bill.com is, how it works, and its various functions. You will also learn several tricks and tips to help make it easier for you to use the tool.
What Is Bill.com?
Bill.com is an online tool that offers accounts receivable and accounts payable automation. It uses unique accounting software to help pay vendors and approve bills more quickly. Moreover, the site’s bill payment method is completely cloud-based and 100% safe. The latter sections of this article talk about its payment processes in detail.
Benefits of Using Bill.com
Quicker Payments
One of the most obvious benefits of using Bill.com is that it saves you time. Managing your firm’s accounts can be tiring, especially when it is experiencing growth. Hence, a rise in business results in a rise in expenses, invoices, and bill payments. Further, most traditional methods of making payments can be severely time-consuming.
Bill.com helps make it quicker for you by using accounts receivable and accounts payable automation processes. With the help of quick ACH payments, the tool handles most of your manual accounting work.
A Tool for Everyone
The next benefit of using this online tool is that it is suitable for everyone. This site handles everything whether you have a small, large, or mid-sized company. Moreover, it is very easy to use, even for people who are not familiar with modern technology. There are various tutorials and customer-friendly guides to help you learn the tool more easily.
Lesser Hassle
Managing your accounts payable process involves various aspects. You must keep track of your vendors, expenses, loans, and various other things. With time, it could become tough to keep up to date with it all. Bill.com gathers all these small tasks and even provides an audit trail to oversee your accounting books.
Lesser Expenses
Running a business involves various expenses and huge capital to support them. If you started a new business, you might begin with a small staff to cut back expenses. However, that becomes tough as your business grows since you can not handle everything yourself. So, while you look after the growth and expansion of your business, you need someone to take care of menial tasks.
Instead of spending extra money on the salaries of the accounting and financing departments, you can rely on Bill.com. This tool will perform all your manual accounting tasks for a much lesser price.
Greater Control Over Your Business
Another great benefit of using this tool is that it helps you gain more control over your business. With this tool, you would eliminate the middleman and directly look over your finances. This helps you make more informed decisions for your business.
Gives Room for Future Growth and Planning
The final benefit of using Bill.com is that it gives room for future business growth. Since the tool takes care of the menial tasks, you can focus more on planning your firm’s future. Instead of managing your accounts payable and accounts receivable, you can formulate policies for business expansion.
How Bill.com Works: Key Processes and Functions
In simple words, the website has created an easy-to-navigate dashboard that separates your accounts payable and receivable. Further, it allows you to upload, store, and review your invoices using cloud-based technology.
After reviewing your invoices, you can send them to your vendor for approval. Once they approve the bill, you can quickly make your payment and sync the bills. The tool also directly links to your bank account and lets you pay bills using ACH transfer.
This section discusses this process in detail and explains the various other financial functions that the tool performs.
Overview
The first panel on the menu, Overview, contains a general summary of all your recent activities on the website.
Inbox
The Inbox section in the panel is essential. You can upload invoice files from your device, and the website’s software will organize and list them for you. Moreover, if you do not have any digital copies of the invoice, you can scan and upload the physical one. You can code your bills and review your invoices here before sending them for approval to the vendor.
Documents
The next section, Documents, contains all your contracts, invoices, images, and other documents. You can access them whenever you want. Further, this section comes in handy during tax payments and auditing.
Accounts Payable
The Payable section on your dashboard includes the following list of items:
Vendors
This section contains the list of vendors that your company has relations with and conducts payment processes with.
Approvals
You can access all your pending bill approvals using this section. It lists your clients, their bill approval status, and their due and invoice dates. Further, you can select one client at a time or mark them all for approval. You can also select and review each client individually before approving their bill.
Bills
You can pay your vendors using the Bills tab. You can either pay them all at once or do them one by one. Further, the tool will make payments directly from your bank account and even convert currencies for you. Hence, it is very useful for international wire transfers.
Once you make the transfer, you can sync your bill payment history with your vendor. Syncing would help avoid a double data entry or any recurring invoices. Lastly, you can also use other payment methods like using a credit or debit card.
Payments Out
This section contains your payment history to vendors. It also displays various details about the bills, including their payment status, confirmation, and invoice number.
Accounts Receivable
The Payable section on your dashboard includes the following:
Customers
This tab lets you keep tabs on all your current and previous customers. You will find information on all your clients. This feature is excellent while filing tax returns or preparing documentation for banks.
Invoices
This tab redirects you to your current invoices. You can select and open each invoice to review them separately. Once you open an invoice, the tool will display the vendor name and invoice number. It will also contain other details, such as your purchase order number and payment terms.
Payments In
This section contains the history of payments you have received. You can review the history of each payment you receive, along with their invoice and bill codes and customer names. The chart also displays the payment currency and its current status.
Frequently Asked Questions
1. What is Quickbooks online advanced?
Quickbooks is an accounting software that can help you track your invoices, bills, and sales online. While the software is very popular, many people believe Bill.com to be a better alternative with simpler functions.
2. How can I learn how to use Bill.com quickly?
You can visit its official website if you are having trouble using the online tool even after reading this article. The makers have created an interactive tutorial that will visually help you learn the tool’s workings.
3. How does Bill.com make your account’s payable process simpler?
The online tool makes it much easier to approve and pay bills using efficient accounting software. This software combines, stores, and keeps track of your vendors, customers, bills, and invoices all in one place.
How Does Bill.com Work? – A Beginner’s Guide: Final Thoughts
If handling your accounting books seems daunting at times, Bill.com will take the load off your shoulders. The quick and efficient online tool will manage your accounts payable process, involving bill approvals, payments, and data tracking. Further, it will also handle your accounts receivables, like invoices and customers.
The website uses secure cloud-based online ACH transfers between bank accounts. It even converts currencies for you, making an international wire transfer much easier.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.