Step by Step Guide to Creating Invoices in QuickBooks Online with Essential Do's and Don'ts

Creating invoices is a crucial part of managing your business finances. QuickBooks Online offers a straightforward way to generate professional invoices that help you get paid faster and keep your accounting organized. This guide walks you through the process of creating invoices step by step, highlighting important do's and don'ts to ensure your invoicing is accurate and effective.

Creating an invoice in QuickBooks Online with clear fields and options

How to Start Creating an Invoice in QuickBooks Online

1. Log in to Your QuickBooks Online Account

   Open your browser and sign in to your QuickBooks Online account using your credentials.

   
   

2. Navigate to the Invoicing Section

   On the left-hand menu, click on Sales, then select Invoices. This will take you to the invoice management page.

   
   

1. Click on New Invoice

   Look for the New Invoice button, usually located at the top right corner, and click it to start a fresh invoice.

   
   

Filling Out the Invoice Details

Choose the Customer

• Select an existing customer from the dropdown list or add a new customer by clicking Add new.

• Ensure the customer’s contact details are accurate to avoid delivery issues.

  
  

Set the Invoice Date and Terms

• The invoice date defaults to the current date but can be changed.

• Choose payment terms such as Due on receipt, Net 15, or custom terms depending on your agreement.

  
  

Add Products or Services

• Click Add product or service to select items from your inventory or service list.

• Enter the quantity and rate for each item.

• QuickBooks will automatically calculate the line total.

  
  

Include Additional Information

• Add a message to the customer if needed, such as payment instructions or thank-you notes.

• Attach files if you want to include supporting documents like contracts or receipts.

  
  

Review Tax Settings

• Confirm the correct tax rate is applied based on your location and the customer’s tax status.

• QuickBooks Online calculates taxes automatically if set up properly.

  
  

Do's When Creating Invoices in QuickBooks Online

• Do double-check customer information before sending the invoice to avoid delays.

• Do customize your invoice template to include your logo and business details for a professional look.

• Do set clear payment terms to help customers understand when and how to pay.

• Do save invoices as drafts if you need to review or get approval before sending.

• Do send invoices promptly after delivering goods or services to speed up payment.

  
  

Don'ts to Avoid Mistakes in QuickBooks Online Invoicing

• Don’t skip adding a unique invoice number; it helps track payments and avoid confusion.

• Don’t forget to apply the correct tax rates; incorrect taxes can cause compliance issues.

• Don’t send invoices without reviewing for errors in amounts, dates, or customer details.

• Don’t ignore overdue invoices; use QuickBooks reminders to follow up professionally.

• Don’t mix multiple projects or clients on one invoice; keep invoices clear and specific.

  
  

How to Send and Manage Invoices

• After completing the invoice, click Save and send to email it directly to your customer.

• You can also print the invoice or save it as a PDF for manual delivery.

• Use the Invoices page to track payment status, send reminders, or record payments when received.

  
  

Tips for Efficient Invoice Management in QuickBooks Online

• Use recurring invoices for regular clients to save time.

• Set up payment gateways like credit card or bank transfer options to make it easy for customers to pay.

• Regularly reconcile your invoices with bank deposits to keep your books accurate.

• Utilize reports in QuickBooks to monitor outstanding invoices and cash flow.