Invoicing in QuickBooks: Make and send invoices, Process Payments, and more

Quickbooks Desktop and Online provides customizable templates for invoicing. You can track payments, send reminders on due dates, automate recurring invoices, etc.

Quickbooks is an accounting software available in both online and desktop mode, where you can create invoices, accept payments, maintain records of accounts receivable, and do regular bookkeeping and report generation. QuickBooks Online allows small businesses to create invoices that are branded with their company logo and are made to simplify the billing process.

You can also connect QuickBooks to your payment provider for the customers to pay their invoices through a debit/credit card. QuickBooks will automatically update your accounting records after the payment is received. 

Need of Invoicing Process for a Small Business Owner

An invoice is a detailed record of a transaction between a buyer and a seller. The Invoice outlines the specifics of the deal and product when goods or services are purchased. It includes the terms and available payment methods. There are various types of invoices, such as paper receipts, bills of sale, debit notes, and sales orders, invoices, and online electronic records. They serve as formal documents that thoroughly record transactions between buyers and sellers.

In addition, invoices serve as essential tax records, providing evidence of your income. You can create invoices with platforms like QuickBooks Invoicing, as it streamlines your process, reduces errors, and optimizes your budget. By the end of this article, you’ll learn the numerous advantages of QuickBooks Invoicing.

Using QuickBooks Invoicing

QuickBooks Online allows you to generate professional invoices efficiently. You can create customized invoices, add your business logo, and include essential details such as product descriptions, quantities, and prices. This ensures accuracy and professionalism in your communication with clients.

QuickBooks Invoicing provides a clear record of outstanding payments and allows cash flow monitoring to businesses for better financial management. They include important information, such as the sale date, the product or service provided, and the amount charged. These records are valuable for financial reporting, sales tax rate due purposes, and auditing.

Features of QuickBooks Invoice

Below are the features of Quickbooks Invoice:

• Customizable invoice templates: Add your company name, logo, or other information.
• Send invoices directly by mail.
• Track invoices.
• Send invoice reminders on or before the due date.
• Receipt Management
• Automate recurring invoices.
• Classify invoices according to payment status.
• Availability of multiple payment options.
• Get an invoice screen, i.e., a dashboard from where you can track all your invoices.
• Add existing customer data, including tax code, from a drop-down list of saved customer information.
• Create invoices on both Quickbooks online and Quickbooks desktop.

Key components of an invoice:

An Invoice should be consisted of all the important information that a customer may need them to make a payment. Below mentioned are the important components that must be included in creating an invoice Invoice:

Unique Identifier: Each Invoice has a distinct invoice number, which is important for internal and external reference.

Business Contact Information: The Invoice typically includes the seller’s or service provider’s contact details. This information is important in case of billing errors.

Payment Terms: The Invoice comes with payment terms, including any discounts, early payment details, or any charges for late payments.

Itemized Details: It presents the unit cost of each item, the total units purchased, and additional charges like freight, handling, shipping, and applicable taxes. The total owed is also specified.

Timing and Printing: Invoices can be sent as month-end statements for all outstanding transactions. Historically, paper invoices were common, but now computer-generated invoices prevail. These can be printed on demand or emailed to the parties involved. Electronic records facilitate easy search and sorting by number, date, goods, or client.

Pro Forma Invoices: These preliminary bills of sale are sent to buyers before goods are shipped. Pro forma invoices are especially relevant for international transactions and customs purposes.

Invoice Date: This timestamp indicates when the goods were billed and the transaction officially recorded, including essential payment information.

How to Create an Invoice in Quickbooks?

QuickBooks Invoicing allows you to create invoices that are both professional and personalized, handle real-time payments, and set up automatic reminders for outstanding payments. Consider the following steps to create an invoice with the help of QuickBooks Invoicing:

1. Click the Create (+) button and select Invoice.
2. Fill in the necessary details for your Invoice.
3. If you’ve customized a style other than the standard one, choose it from the Customize options at the bottom of the page.
4. Click Print or Preview to ensure the form looks exactly how you want it when you send or print it. You can also save it as a PDF by hovering over the previewed form and clicking Adobe’s save icon.
5. If you select Print Later, you can print the Invoice from the queue at a later time.
6. Finally, click Save and Send to email the form.

You will have the opportunity to select save as to edit the email message to your customer and preview the form one last time before sending it out.

Quickbooks online recurring Invoice

There are 3 ways of creating invoices in Quickbooks online:

Setup Quickbooks online recurring Invoice

Consider the below-mentioned steps to set up a recurring invoice in QuickBooks Online:

1. Log into QuickBooks Online
2. Navigate to the Sales tab.
3. Click on the + New button and select Invoice.
4. Fill in the relevant customer details.
5. Go to the Items section and include the items that should appear in the recurring Invoice.
6. Click on the Schedule button at the bottom of the page.
7. Click on the drop-down menu to choose Recurring.
8. Specify the frequency (weekly, monthly, etc.) for generating the Invoice.
9. Select the start date and end date for the recurring Invoice.
10. Click Save & Close to finish the setup.
11. In addition, you can also create a recurring invoice by following these steps:

• Go to the Customers tab.
• Select a specific customer name.
• Click on the Create Invoice button and repeat steps 4 to 9 above.

Setup from an existing invoice

Follow these steps if you already have an existing invoice that you want to set up as new invoice or a recurring transaction in QuickBooks Online:

1. Go to the Sales menu and select Customers.
2. Choose the relevant customer’s name from the list.
3. Select Actions and then select Recurring Transactions.
4. Choose Set Up Recurring Transaction from the drop-down menu.
5. You need to provide information in the corresponding fields in the next window:

• Type: Decide whether you want to set up an invoice or a sales receipt.
• Template: Select the desired template for this recurring transaction.
• Frequency: Specify how often you want this transaction to occur (options include daily, weekly, monthly, quarterly, semi-annually, and annually).
• Start Date: Determine when the recurring transaction should begin.
• End Date (optional): Indicate when the recurring transaction should end.

1. You need to select the Send me an email checkbox if you want to receive an email notification when the recurring transaction is processed.
2. Click Save & Close to finalize the setup.

Next time when the recurring transaction is scheduled for processing, you will receive customer message and an email notification (if you have opted for it in Step 7). Go to the Sales menu and select Recurring Transactions to view the recurring transaction.

Edit Quickbooks recurring invoices.

When you already have a full invoice in QuickBooks desktop recurring invoice, it can be very convenient to edit it to modify the payment schedule, amount, or other details:

1. Go to the Customers menu.
2. Select Create/Edit Recurring Invoices.
3. It would help if you find the specific recurring invoice you want to edit and click Edit.
4. Adjust the invoice template as needed.
5. One can add new line items, delete existing items, or change the product or service associated with a line item.
6. Click Save & Close to finish with the edits.

How to Create QuickBooks Custom Invoice

Follow the steps to customize invoices with the help of QuickBooks Invoices:

1. First, open QuickBooks.
2. Then, click on Customers in the main menu bar.
3. Select Create Invoices from the drop-down menu.
4. Click on Print Preview to see how your invoice template will appear when it is printed or sent through email.
5. You can use this preview to decide how you want to customize the template.
6. Click Close to exit the preview screen.
7. Now click on the Customize drop-down menu and select Manage Templates.
8. Click on each thumbnail to check the Template Gallery.
9. Preview how each template will look as an invoice.
10. Click OK to open your chosen template.
11. Add or move your company logo.
12. Adjust the position and appearance of your company’s name and contact information.
13. Modify the invoice title.
14. Add, edit, or remove fields on the Invoice.
15. You can include special sections like legal disclaimers, a remittance tear-off sheet, or customer notes.
16. Click on Print Preview to see how your customized Invoice looks with the changes you have made.
17. Click OK to save the customized template.

How to Create Estimate in QuickBooks Online?

Follow these steps to go through the entire estimate process:

1. Find the Estimate window.
2. On the left menu bar, find the Customers Menu.
3. Scroll down and select the customer for whom you want to prepare the estimate.
4. Click on New Customer at the top right of the Invoice screen to create their profile.
5. Click on the drop-down menu next to the customer’s name.
6. Select Create Estimate.
7. Fill in the necessary details such as date, product or service description, quantity, rate, and any other relevant information.
8. Click on Save.
9. Alternatively, choose Save and send to email the estimate directly.

How to Process Payments in Quickbooks Online with Quickbooks Payments?

If a customer prefers to pay in person, you have two options: either ask them to follow the payment link in the email and complete the transaction online or handle the payment on their behalf and match the invoice immediately on it to their existing Invoice.

1. Click on + New.
2. Choose Receive Payment.
3. Enter the customer’s name and the payment date.
4. In the Outstanding Transactions section, select the relevant open Invoice to apply for the payment. Adjust the PAYMENT field if it’s a partial payment.
5. From the Payment method dropdown, choose Credit Card.
6. Enter the credit card details manually or select Swipe Card if available.
7. Optionally, save the customer’s credit card for future use.
8. Finally, click Save or Use this info.
9. Confirm with Got it, then choose Save and Close or Save and New.

Final Words

QuickBooks Online is an accounting software which provides an invoicing solution for businesses of all sizes. QuickBooks Online has all the solutions from generating a simple invoice to customizing it to match with your brand. With customizable invoices, seamless payment acceptance, and real-time tracking, QuickBooks simplifies the invoicing process, allowing you to get paid faster.