How to Use QuickBooks to Create and Pay Bills
How to Use QuickBooks to Create and Pay Bills: A Step-by-Step Guide
Whether you're a small business owner, a nonprofit director, or a freelancer juggling multiple income streams, budgeting is the backbone of financial success. If you're using QuickBooks, you're in luck, its built-in budgeting tool can transform your financial planning from guesswork into strategic foresight.
In this post, we'll walk you through how to use the QuickBooks budgeting tool, why it's worth using, and how it can empower your business with clarity and confidence.
What Is the QuickBooks Budgeting Tool?
The budgeting tool in QuickBooks (available in QuickBooks Online Plus and Advanced, and in Desktop versions) allows users to create detailed financial forecasts based on historical data. You can set monthly or yearly budgets, compare actual performance vs. projections, and get insights into your spending and income patterns.
With just a few clicks, you can build a roadmap for your business tracking where you are, where you're going, and whether you’re staying on track.
Why Use the QuickBooks Budgeting Tool?
Here are just a few benefits of using this feature:
Improved cash flow management
Data-driven decision-making
Spending control
Financial accountability
Easy reporting and variance analysis
With QuickBooks, you don't need a separate spreadsheet or financial software. Everything is integrated, live, and accessible in one place.
How to Set Up a Budget in QuickBooks (Step-by-Step)
Step 1: Gather Your Financial Data
Before jumping into QuickBooks, make sure you have a solid understanding of:
Last year’s revenue and expenses
Seasonal trends
Fixed vs. variable costs
Business goals for the upcoming year
The more context you have, the more accurate your budget will be.
Step 2: Navigate to the Budgeting Tool
For QuickBooks Online:
Go to the Gear icon in the upper right corner.
Under Tools, select Budgeting.
Click Add budget in the top right corner.
For QuickBooks Desktop:
Go to the Company menu.
Select Planning & Budgeting, then choose Set Up Budgets.
Step 3: Choose the Budget Year and Type
Select the fiscal year you want to budget for.
Choose between Profit & Loss or Balance Sheet (most businesses go with Profit & Loss).
Optionally, subdivide by class, customer, or location (if you use those features).
Step 4: Auto-fill With Historical Data (Optional)
QuickBooks gives you the option to pre-fill budget data based on the previous year’s actuals. This is a great shortcut if your business has stable revenue and expense trends.
Step 5: Customize Your Budget
Now you’ll see a spreadsheet-style layout:
Enter income and expense projections month-by-month
Add notes or leave fields blank if needed
Adjust based on upcoming changes (e.g., hiring a new employee, rent increases)
Pro tip: Be conservative with income projections and overestimate variable expenses to give yourself a buffer.
Step 6: Review and Save
Once you’ve filled out your budget:
Click Save and Close
Name your budget clearly (e.g., “2025 Operating Budget”)
You can edit or duplicate it later if changes arise
Analyzing and Comparing Budgets
Creating a budget is only half the battle. Monitoring performance against it is where the real magic happens.
To compare actuals vs. budget:
Go to Reports
Search for and select Budget vs. Actuals report
Customize filters by date, class, or customer as needed
This gives you a clear visual on what’s working and where you might need to tighten the belt.
Q&A: QuickBooks Budgeting Tool
Q: Do I need QuickBooks Online Plus to access the budgeting tool?
A: Yes. The budgeting feature is available in QuickBooks Online Plus and Advanced, and in QuickBooks Desktop (Pro, Premier, and Enterprise editions).
Q: Can I create multiple budgets?
A: Absolutely. You can create different budgets by department, class, or customer. This is especially helpful for nonprofits, project-based businesses, or multi-location operations.
Q: Can I track actual vs. budget in real-time?
A: Yes. QuickBooks updates your reports as you enter transactions, allowing real-time budget tracking through built-in reports.
Q: Can budgets be exported?
A: You can export your budgets and budget reports to Excel if you need to share them with others or do deeper analysis.
Q: What’s the difference between a budget and a forecast in QuickBooks?
A: A budget is a fixed financial plan for a specific period. A forecast (available in QuickBooks Online Advanced) is more dynamic and can be adjusted as circumstances change.
Tips for Better Budgeting in QuickBooks
Review monthly: Don’t set it and forget it.
Use classes or locations: This helps break down data.
Include a contingency: Life happens. Build a 5–10% cushion.
Be realistic: Aim for accuracy over optimism.
Get help if needed: Budgeting can be tricky don’t be afraid to call in reinforcements (like us!).
Let Brecken Business Solutions Be Your Budgeting Partner
At Brecken Business Solutions, we specialize in helping small to mid-sized businesses and nonprofits get the most out of their financial tools including QuickBooks.
Whether you're building your first annual budget or fine-tuning a department-level financial strategy, our team can guide you every step of the way.
✅ Customized budget setup
✅ Ongoing financial tracking and reporting
✅ Strategic insight to help your business grow
Contact us now!
Final Thoughts
The QuickBooks budgeting tool is more than just a place to plug in numbers.. it's a dynamic feature that can shape your financial strategy, keep your team accountable, and help you hit your goals. With the right setup and support, your budget becomes a roadmap to growth, not just another spreadsheet.
