How to Handle Invoices and Payments in QuickBooks

How to Handle Invoices and Payments in QuickBooks

Efficiently managing payments and invoices is imperative for any company. QuickBooks Online simplifies creating, sending, and following invoices, and accepting payments — all in one spot. Here, you’ll see exactly how to manage invoices and payments in QuickBooks like a pro.

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 Step 1: Make a Professional Invoice

1. Navigate to the + New menu
2. Click on Invoice in Customers.
3. Choose the customer name and invoice date.
4. Add:
   • Product/service
   • Description
   • Rate
   • Quantity
5. Select payment terms (e.g., Net 15, Net 30).
6. Save and Send to email or Save and Close to send later.

 You may also customize invoice templates with your logo and colors in Settings > Custom Form Styles.

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 Step 2: Record a Customer Payment

1. Navigate to + New > Receive Payment
2. Choose the customer and open invoice.
3. Enter the amount received, payment method, and deposit account.
4. Save and Close.

 Tip: If you’ve connected your bank account, QuickBooks will automatically suggest matches for deposits

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 Step 3: Track Invoice Status

Every invoice in QuickBooks will display a status:

• Paid
• Unpaid
• Overdue
• Partial

From the Sales > Invoices tab, you can re-send or remind clients about outstanding invoices with a single click.

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 Step 4: Set Up Recurring Invoices (Optional)

For customers with regular billing (e.g., monthly services):

1. Open an invoice.
2. Click Make Recurring.
3. Set:
   • Recurrence schedule
   • Start/end date
   • Interval (monthly, weekly, etc.)
4. Save the recurring template.

Recurring invoices prevent you from ever skipping a billing period

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 Step 5: View Reports for Invoicing & Payments

Track your receivables with these reports:

• Accounts Receivable Aging Summary – to view who owes you and for how long.
• Invoice List – an invoice breakdown of all the invoices sent.
• Customer Balance Summary – for total customer account information.

 Under Reports > Who owes you, reports are available.

 

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 Last Tips

• Always pair payments with invoices to eliminate confusion.
• Utilize automatic reminders to minimize delayed payments.
• You may want to turn on online payments through QuickBooks. This allows customers to pay quicker using credit cards or ACH.

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 Conclusion

QuickBooks Online streamlines managing invoicing and payments. You can spend less time worrying about it. You can dedicate more time to building your business. Having them automated guarantees timely payments, well-kept records, and less headache over finances.

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