_edited_edited.png)
QuickBooks October 2026 Update: 7 Bookkeeping Checks
QuickBooks Online's October 2026 update includes three changes that can save time for small businesses: vendor credits can be applied while scheduling Bill Pay, payroll spreadsheets can be turned into drafts for review, and service-item hours can be assigned to jobs and projects from the paycheck. Each feature is useful, but each can also move a mistake faster if the underlying records are incomplete.
The safest approach is simple: let QuickBooks prepare the work, then use a short review process before anything is paid, posted, or approved. The seven checks below can help owners, office managers, and bookkeepers get the convenience without losing control of the books.
What changed in the October 2026 QuickBooks update
Intuit says users can now view available vendor credits while scheduling a bill payment. The payment screen can show the credit date, reference number, original amount, and remaining balance. The amount applied appears in the payment schedule, and the vendor's remittance advice can show the credit.
QuickBooks Workforce customers on Premium and Elite plans can also upload payroll information from a CSV or Excel file. Intuit Intelligence extracts the data, asks for clarification when needed, and creates a table for review. The information is not added to payroll until the user reviews and confirms it.
For service businesses, hours can be assigned by paycheck to service items, customers, jobs, or projects. That detail can then flow into job-costing reports. Availability can vary by subscription, payroll product, and rollout group, so confirm which options appear in your account before changing a process.
1. Match every vendor credit to its source document
Before applying a credit, find the vendor's credit memo, return confirmation, rebate notice, or corrected invoice. Compare the vendor name, date, reference number, original amount, and remaining balance with what QuickBooks displays. Attach or save the support with the transaction when possible.
This step matters because a credit in the right amount can still belong to a different purchase, location, or period. A clean paper trail makes the credit easier to explain later and reduces the risk of applying it twice.
2. Apply the credit to the correct bill
Review the open bill before scheduling payment. Confirm the invoice number, due date, amount, and expense or inventory coding. After the credit is applied, the remaining payment should equal the bill balance minus the approved credit.
If the vendor credit was already used outside QuickBooks or netted against a prior payment, do not use it again. Run an accounts-payable aging report or open the vendor activity to confirm the bill and credit are both still outstanding.
3. Review the remittance details
The remittance advice tells the vendor how the payment was calculated. Check that it lists the correct bills, credits, and final payment amount before sending. Clear details reduce avoidable emails, help the vendor apply the payment correctly, and make future statement reconciliation easier.
Keep the payment confirmation with the related bill and credit. If a vendor statement later disagrees with your books, you will have one complete record showing what happened.
4. Treat a payroll spreadsheet upload as a draft
A payroll import can reduce typing, but it should not replace payroll review. Check employee names or IDs, pay-period dates, regular hours, overtime hours, pay rates, bonuses, reimbursements, tips, sick time, and paid time off. Pay special attention to blank cells, duplicated rows, negative numbers, and hours that landed under the wrong earning type.
Use a consistent spreadsheet template and protect formula cells. Save the source file with a clear name that includes the pay-period end date. If Intuit Intelligence asks a question about a column, answer it using the payroll source records instead of guessing from memory.
5. Reconcile payroll totals before approval
Compare the QuickBooks draft with the approved time records and payroll summary. At a minimum, review total regular hours, overtime hours, gross wages, employee taxes, employer taxes, deductions, benefits, reimbursements, and net pay. Investigate unexpected differences before payroll is submitted.
Compare the draft with the prior payroll and note legitimate changes such as a new employee, a raise, a bonus, unpaid leave, or a holiday. Large unexplained changes deserve a second look.
6. Check service-item and job-cost assignments
If labor is assigned to customers, jobs, or projects, confirm that the service item matches the work performed. Split a paycheck when an employee worked on more than one job. Use consistent customer and project names so the same job is not divided between duplicate records.
After payroll posts, review a project profitability or job-cost report. Look for unassigned labor, unusually high hours, negative amounts, or costs posted to a closed job. Accurate labor coding gives owners a more useful view of which work is actually profitable.
7. Save support and leave a review trail
The IRS says business records should clearly show income and expenses and should be supported by documents such as invoices, bills, receipts, deposit information, and canceled checks. It also says employment tax records generally should be kept for at least four years after the tax becomes due or is paid, whichever is later. Other retention periods can differ by record and situation.
Keep the vendor credit document, payment confirmation, approved time records, payroll source file, payroll reports, and notes about material corrections. Use roles and permissions so only authorized people can approve payments or payroll, and record who completed the final review.
A practical rollout checklist
Test the vendor-credit workflow with one bill before using it broadly.
Standardize how credit memos and payroll source files are named and stored.
Use a repeatable payroll-import template rather than a different layout each pay period.
Require a second review for payroll or payments above a chosen dollar amount.
Review accounts payable, payroll, and job-cost reports after the first live cycle.
Document who can prepare, approve, and release payments or payroll.
Keep supporting records according to your tax, payroll, legal, and business needs.
The takeaway
QuickBooks' new tools can remove repetitive steps, but accuracy still depends on the records behind them. A vendor credit needs a valid source document, a payroll upload needs a line-by-line review, and job-cost detail needs consistent coding. Build those checks into the workflow before the new process becomes routine.
If your bills, payroll records, or job-cost reports need a cleanup before you adopt these features, Small Biz Books can help you organize the process and create a review checklist that fits your business.
This article is for general educational information only and is not legal, tax, payroll, or accounting advice. Rules and product features can change. Consult qualified professionals about your specific situation, and confirm current QuickBooks availability and IRS requirements.
Comments