How to Pay a Vendor in QuickBooks Online | Methods and Tips

QuickBooks Online helps businesses stay organized by pulling everything into one place. Whether you’re sending a direct deposit, setting up an ACH transfer, printing a check, or paying international vendors, QuickBooks offers flexible options that fit the way you work.

In this guide, we’ll walk through how to set up vendors, choose the right payment methods, and manage payments smoothly, so you can spend less time chasing invoices and more time focusing on what’s next. You'll also learn about the Wise Business account, which can help your company scale internationally.

Do you send and receive global payments?

Try Wise Business >>

Wise Trustpilot Score: Excellent 4.3 out of 5 stars
No minimum balance requirement and no monthly fees
Integrates with QuickBooks, Xero, Sage, and more

Why Properly Managing Vendor Payments Matters

Vendor payments play a bigger role in business health than they often get credit for. Paying suppliers on time keeps operations moving, protects cash flow, and strengthens long-term relationships. It’s a simple action that, if handled properly, helps avoid late fees, supply disruptions, and accounting headaches.

In fact, a US Bank study found that 82% of small businesses fail due to cash flow problems.¹ Managing vendor payments effectively is a critical component of maintaining healthy cash flow.

As a company grows, vendor management becomes even more important. More suppliers, more bills, and more payment methods mean more room for error. Without a reliable system in place, businesses risk losing visibility over cash outflows, which is something that can quickly lead to financial strain.

By centralizing the payment process, QuickBooks Online helps businesses:

• Keep track of outstanding bills
• Schedule and automate payments
• Maintain accurate, up-to-date accounting records

There’s no need to scramble to meet payment deadlines or sort through disconnected systems, as businesses can manage everything in one place, saving time and reducing the risk of costly mistakes.

How QuickBooks Online Supports Vendor Payments

If you’re wondering, can I pay vendors through QuickBooks Online? The answer is yes, and QuickBooks makes it simple to manage payments without leaving your accounting platform.

Rather than juggling different platforms to send money, update books, and track bills, businesses can handle everything directly within QuickBooks.

There are several ways to pay vendors through QuickBooks Online, depending on what works best for your suppliers and your payment process.

ACH Payments

ACH payments let you transfer money electronically from your business bank account to your vendor’s account. It’s a secure, cost-effective method that avoids the need for paper checks or expensive wire transfers.

ACH is a good option for businesses that pay vendors on a regular basis and want predictable delivery times without high transaction fees.

Direct Deposit

Direct deposit is available through QuickBooks Online for businesses looking for a faster, simpler way to move money. Once vendor bank details are entered, payments can be sent directly to their account with just a few clicks.

This option is ideal for companies that work closely with contractors or recurring suppliers, offering convenience for both sides.

Printed Checks

While electronic payments are becoming more common, some vendors still prefer or require paper checks. QuickBooks Online makes it easy to print checks directly from the system, helping you keep track of physical payments alongside your digital ones.

You can also record manual check payments if you’re using pre-printed stock.

Bill Pay Automation

QuickBooks Online’s Bill Pay feature helps businesses automate the payment process. You can schedule payments in advance, set up recurring bills, and receive reminders for upcoming due dates. This not only saves time but also reduces the risk of late payments, helping maintain good relationships with suppliers.

The biggest advantage of using QuickBooks Online for vendor payments is the seamless integration with your accounting records. Payments are automatically recorded, vendor balances are updated, and financial reports are accurate without needing to re-enter information manually.

For growing businesses, this connection between payments and accounting will help boost efficiency and visibility.

Setting Up Vendors and Payment Preferences

Before you can start sending payments through QuickBooks Online, it’s important to set up your vendor information properly. Taking the time to organize these details up front makes the payment process faster, more accurate, and easier to manage as your business grows.

Here’s how to get started.

Add Vendors to Your QuickBooks Account

Start by creating a vendor profile for each supplier you work with. In QuickBooks Online, you can do this by:

1. Navigating to the Expenses tab
2. Selecting Vendors
3. Clicking New Vendor

From there, you’ll be prompted to enter key details like the vendor’s name, company name, email address, and mailing address.

Even if you’re not ready to pay them yet, setting up vendors early helps you track bills, expenses, and purchase orders more efficiently.

Wise Business for International Payments

Capture Bank Details for Electronic Payments

If you plan to pay vendors by ACH or direct deposit, you’ll need their banking information. You can collect:

• Bank name
• Account number
• Routing number (for US accounts)
• Account type (checking or savings)

Gather these details securely and double-check them before entering them into QuickBooks. Having the right information from the start helps avoid failed transactions and delays down the line.

Set Preferred Payment Methods

Once a vendor profile is created, you can also set a preferred payment method. If the vendor prefers direct deposit, a mailed check, or another method, QuickBooks lets you record that preference, so you can choose the right option automatically when it’s time to pay.

Setting payment preferences up front saves time when bills come in, and it keeps your payment workflow organized across different vendors.

Paying Vendors by Direct Deposit in QuickBooks Online

Knowing how to pay vendors in QuickBooks Online with direct deposit gives businesses a faster, more secure way to move money.

Funds are deposited straight into the vendor’s bank account, with no need to mail a check or coordinate a manual transfer.

For businesses managing multiple suppliers, direct deposit offers a faster, more reliable way to keep payments on track.

How Direct Deposit Works

In QuickBooks Online, direct deposit is processed through a connected bank account.

Once a vendor’s banking details are set up, you can send payments directly without needing to leave the QuickBooks platform. Each transaction is automatically recorded, keeping your books up to date without extra manual entry.

Setting up direct deposit usually involves:

• Collecting your vendor’s bank account information securely
• Entering their details into their vendor profile
• Verifying your own business bank account if you haven’t already
• Initiating payments through the Pay Bills section when ready

There’s no need to memorize complicated steps, as QuickBooks guides you through the process, and payments can often be sent in just a few clicks once everything is set.

Why Use Direct Deposit?

Using direct deposit to pay vendors brings a few important benefits:

• Speed: Payments typically arrive faster than mailed checks, helping vendors get paid sooner and reducing payment disputes.
• Tracking: Every payment is recorded automatically in QuickBooks, making it easier to reconcile accounts and monitor outgoing cash flow.
• Simplicity: After setup, paying vendors is as easy as selecting their name and confirming the payment.

For businesses growing their supplier network, direct deposit offers a simple, scalable solution to managing payments more efficiently.

---

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

---

Paying Vendors Through ACH Transfers

QuickBooks Online ACH payments to vendors offer a simple, cost-effective way to manage cash flow.

ACH, or Automated Clearing House, is a network that moves money electronically between banks, typically with lower fees and fewer delays than traditional wire transfers.

For businesses that manage regular vendor payments, ACH is a practical option that balances speed, security, and cost.

How ACH Transfers Work in QuickBooks Online

When you set up ACH payments in QuickBooks Online, the process is straightforward. After entering your vendor’s bank information into their profile, you can choose to send payments electronically rather than issuing a check.

The system routes the payment through the ACH network, debits your business account, and deposits the funds into your vendor’s account. QuickBooks tracks the entire transaction automatically, ensuring your accounting records stay up to date.

ACH payments often take 1–2 business days to process, depending on your bank and the vendor’s bank.

Why Businesses Use ACH for Vendor Payments

ACH transfers are a smart choice for businesses that need a reliable, cost-effective way to manage vendor payments at scale.

Instead of dealing with high credit card fees or slower check processing, ACH transfers move money securely between banks, usually with lower transaction costs and predictable timing.

Key benefits include:

• Lower costs: ACH fees are generally lower than wire transfers or card processing fees, helping businesses save money on regular payouts.
• Cash flow predictability: ACH processing times are consistent, making it easier to plan outgoing cash and avoid shortfalls.
• Scalability: Once a vendor’s ACH details are saved, future payments can be processed quickly, which is ideal for businesses managing multiple recurring payables.

Using ACH lets businesses cut unnecessary costs while keeping cash flow management more predictable and efficient.

Other Ways to Pay Vendors

While ACH and direct deposit are popular for many businesses, there are still times when other payment methods make sense.

QuickBooks Online gives you flexibility to handle a variety of vendor needs, depending on how and when they prefer to be paid.

Choosing the right method shouldn’t just be about what’s most convenient, but also about balancing cost, timing, and vendor expectations.

When Check Payments Still Make Sense

Despite the rise of digital payments, some vendors still prefer receiving checks, especially smaller suppliers or those who are more traditional in their processes.

QuickBooks Online allows you to easily print checks directly from your account, keeping your records clean and minimizing manual entry.

Checks can be useful when:

• A vendor requests physical payment for their own tracking purposes
• Banking details aren’t available, or vendors are hesitant to share them electronically
• Payments are infrequent and not worth setting up a digital method

However, checks come with risks. They can get delayed, lost, or stolen, and also take longer to process, which can impact cash flow timing if not managed carefully.

Paying Vendors With a Business Credit Card—and When It’s a Bad Idea

QuickBooks Online lets you record vendor payments made by credit card, but using cards for payables requires careful consideration.

Paying vendors with a business credit card can help if:

• You need to extend cash flow temporarily by leveraging a billing cycle
• You want to earn rewards or cashback on business expenses

But it’s not always the best choice. Some vendors charge additional fees for card payments, and carrying balances can quickly add expensive interest charges if not paid off in full.

For most businesses, credit cards are better used selectively and not as a primary vendor payment method.

How Bill Pay Features Can Simplify Things Further

QuickBooks Bill Pay offers a middle ground for businesses that want more automation without committing to one payment method.

With Bill Pay, you can:

• Schedule payments in advance
• Set up recurring vendor payments
• Track due dates and payment statuses easily

Bill Pay helps ensure you never miss a deadline, and by automating parts of the process, it frees up time for more strategic financial work.

For businesses managing multiple vendors, combining Bill Pay automation with flexible payment options can lead to smoother operations and better cash management overall.

Cross-Currency Vendor Payments in QuickBooks Online

Paying vendors internationally can open up new opportunities for businesses, but it also introduces extra layers of complexity.

Managing different currencies, tracking exchange rates, and accounting for additional fees all require careful attention to avoid unexpected costs.

Without a clear process, cross-currency payments can create confusion in both your cash flow and your bookkeeping.

How QuickBooks Online Supports International Vendor Payments

QuickBooks Online includes a multi-currency feature designed to help businesses manage vendors and transactions in different currencies.

Once enabled, you can:

• Set a home currency for your business
• Assign different currencies to individual vendors
• Record bills and payments in the vendor’s preferred currency

QuickBooks handles the basic conversion rates automatically and adjusts your reporting to reflect real-time currency values.

However, it’s important to note that multi-currency support focuses on accounting, not necessarily on executing the actual payment.

Businesses may still need to use external banking services or platforms to complete the international transfer itself.

What to Watch for With Cross-Currency Payments

While QuickBooks can help with recordkeeping, cross-border transactions come with risks businesses should be aware of:

• Bank fees: Many banks charge wire transfer or international payment fees that can add up quickly.
• Exchange rate fluctuations: Rates can shift daily, which means the amount you owe in your home currency might not match the invoice exactly if there’s a delay.
• Payment delays: International transfers often take longer to clear, depending on the countries and banks involved.

Planning for these challenges helps businesses avoid surprises and maintain stronger relationships with international suppliers.

Best Practices for International Vendor Payments

To manage cross-currency vendor payments effectively:

• Enable QuickBooks’ multi-currency feature early if you work with international vendors
• Confirm bank fees and transfer timelines before sending payments
• Use consistent, documented exchange rates when possible for vendor contracts
• Monitor cash flow closely around major currency movements to avoid shortfalls

Handling cross-border payments takes a little more planning, but with the right systems in place, businesses can expand their vendor networks globally without unnecessary complications.

Tips for Managing Vendor Payments Smoothly

Setting up vendor payments is only the first step.

Maintaining a reliable system over time helps businesses stay efficient, avoid mistakes, and build stronger supplier relationships as they grow.

Reconcile Payments Regularly

Even with automation, it’s important to match outgoing payments regularly against vendor invoices and accounting records.

Reconciling payments weekly or monthly helps catch any discrepancies early, like duplicate charges, missed bills, or partial payments.

QuickBooks Online makes reconciliation easier by automatically logging payment activity, but regular review ensures your books stay truly accurate.

Set Clear Payment Terms

Establishing clear payment terms with your vendor from the start reduces confusion and helps both sides manage cash flow more effectively.

Agree on:

• Payment due dates
• Accepted payment methods
• Any discounts for early payment or penalties for late payment

Recording these terms inside each vendor profile in QuickBooks ensures they’re easy to reference whenever bills are entered.

Monitor Cash Flow Around Vendor Payouts

Vendor payments often represent a significant portion of a business’s cash outflows. Keeping an eye on upcoming payment schedules, particularly for large suppliers, helps avoid surprises and ensures you have enough liquidity to cover expenses when needed.

In fact, US small businesses are grappling with a colossal $825 billion in unpaid invoices.² This staggering amount showcases the importance of proactive cash flow management to mitigate the impact of delayed receivables.

QuickBooks Online’s cash flow forecasting tools can also provide a real-time snapshot of your available funds, helping you plan payments more strategically.

Final Thoughts

Vendor payments help keep the lights on, but more importantly, they help build the foundation for stronger operations, healthier cash flow, and better supplier relationships.

QuickBooks Online streamlines vendor management by keeping billing, payments, and accounting all connected in one place, helping businesses stay organized whether they’re working locally or across borders.

Set your systems up properly, stay consistent, and review your cash flow often. A little time spent organizing vendor payments now can save a lot of trouble (and a lot of money) down the line.

---

Sources:

1. The Number 1 Reason Small Businesses Fail - And How to Avoid It | Score
2. US Small Businesses Owed $825 Billion in Unpaid Invoices | Entrepreneur