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In this tutorial, Liz Basara, CEO of Financial GPS, demonstrates how to convert an expense into a bill payment in QuickBooks Online. She addresses a common scenario where an expense is recorded without being linked to an existing bill. To convert the expense, users need to locate the specific expense and click on it. A prompt will appear on the right side to add it as a bill. Users then enter the payment amount at the top to finalize the process. Liz assures that this conversion is quick and straightforward, taking only about 30 seconds to complete.