If you`re a contractor in Canada, there`s a good chance you`re using QuickBooks Online as your accounting software. And if you`re working with subcontractors or other contractors, you`ll need to know how to pay them through QuickBooks Online. Here`s a step-by-step guide to help you out:

Step 1: Set up your contractor as a vendor

First, you`ll need to set up your contractor as a vendor in QuickBooks Online. To do this, go to the “Expenses” tab and select “Vendors”. Click on “New Vendor” and fill in all of the required fields. Make sure to select “Individual/Sole Proprietor” if your contractor is a freelancer or self-employed.

Step 2: Set up your payment method

Next, you need to set up your payment method. Go to the “Expenses” tab and select “Expenses”. Click on “New Expense” and select the vendor you want to pay. In the “Payment” section, select your payment method. You can choose from various payment methods, including cheque, direct deposit, and credit card.

Step 3: Create a bill

Now it`s time to create a bill for your contractor. Go to the “Expenses” tab and select “Bills”. Click on “New Bill” and select the vendor you want to pay. Fill in all of the required fields, including the amount you owe the contractor. Make sure to select the correct expense account for the payment.

Step 4: Pay your contractor

Once you`ve created a bill, it`s time to pay your contractor. Go to the “Expenses” tab and select “Pay Bills”. Select the bill you want to pay and click on “Pay Selected Bills”. Select your payment method and fill in all of the required information. Once you`ve completed the payment, make sure to mark the bill as “Paid” in QuickBooks Online.

Step 5: Record the payment in QuickBooks Online

Finally, you need to record the payment in QuickBooks Online. Go to the “Expenses” tab and select “Expenses”. Find the payment you just made to your contractor and click on it. Click on “Add Payment” and fill in all of the required information, including the date and amount paid. Once you`ve completed the payment, QuickBooks Online will automatically update your accounts payable and accounts receivable.

In conclusion, paying contractors through QuickBooks Online is easy once you know how to do it. Follow these simple steps and you`ll be able to pay your subcontractors and other contractors quickly and efficiently.