Preheat the oven to 350°F.
In a large oven-safe skillet or Dutch oven, add the chopped bacon and diced onion.
Cook over medium heat, stirring often, until the bacon starts to brown and the onion softens, about 8 to 10 minutes.
If there is a lot of extra grease, carefully spoon off some of it, leaving a little behind for flavor.
Stir in the salt, black pepper, garlic powder, and smoked paprika.
Add the drained and rinsed beans, water, brown sugar, molasses, ketchup, Dijon mustard, and vinegar. Stir well to combine.
Bring the mixture to a gentle simmer.
Transfer the skillet or Dutch oven to the oven and bake uncovered for 45 to 60 minutes, stirring once or twice, until the sauce has thickened and the beans are bubbly.
Let the baked beans rest for 5 to 10 minutes before serving.