If you`re a business owner who frequently hires contractors, it`s important to have an efficient payment system in place. One way to streamline the payment process is by using QuickBooks Desktop to pay contractors with direct deposit. Here`s how to get started:
1. Set up Direct Deposit in QuickBooks
Before you can pay contractors with direct deposit, you need to set it up in QuickBooks. Go to the “Employees” tab and select “Payroll Center.” From there, click on the “Direct Deposit” tab and follow the prompts to set up your direct deposit account.
2. Get Contractor Banking Information
To pay contractors with direct deposit, you`ll need their banking information. This includes their bank name, routing number, and account number. You can ask them to provide this information to you through a secure portal or via email.
3. Set Up Contractor Information in QuickBooks
Once you have the contractor`s banking information, go to the “Vendors” tab and select “Vendor Center.” Click “New Vendor” and enter the contractor`s information, including their name, address, and banking information.
4. Create a Direct Deposit Payment
To create a payment for your contractor, go to the “Employees” tab and select “Pay Employees.” From there, select the contractor you want to pay and click “Create a Paycheck.” Enter the amount you want to pay and select “Direct Deposit” as the payment method.
5. Review and Submit Payment
Before submitting the payment, be sure to review all the information to make sure it is accurate. Once you`re satisfied, click “Submit” and the payment will be sent to the contractor`s bank account.
6. Make Sure the Payment Goes Through
After submitting the payment, it`s important to check that it went through successfully. You can do this by going to the “Payroll Center” and selecting “View Pay Scheduled.” This will show you all of the payments that are scheduled to be made.
By paying contractors with direct deposit in QuickBooks Desktop, you can save time and streamline your payment process. With just a few simple steps, you can pay your contractors quickly and efficiently while keeping accurate records in your accounting software.