Invoices, Payments & AR in QBO

Invoices, Payments & AR in QBO

Creating a Professional Invoice

+ New > Invoice
  > Customer (select or create)
  > Invoice Date and Due Date
  > Payment Terms (Net 30, Due on Receipt, etc.)
  > Line Items: Product/Service, Description, Qty, Rate
  > Attachments (optional -- contracts, SOW)
  > Save and Send

Invoice best practices:

• Use consistent invoice numbering (QBO auto-increments)
• Set default terms in Account Settings so every invoice inherits them
• Add clear payment instructions in the message field
• Attach the delivery confirmation or project summary

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Receiving a Payment

+ New > Receive Payment
  > Customer
  > Payment Date
  > Amount Received
  > Uncheck "Undeposited Funds" if depositing directly to bank
  > Select the Invoice(s) to apply to
  > Save

Never apply to the wrong invoice. If a customer says "this is for Invoice #112," apply it there -- not to the oldest open invoice.

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Undeposited Funds -- Clear It Weekly

When you record a Receive Payment before making the bank deposit, QBO parks it in Undeposited Funds. When you deposit:

+ New > Bank Deposit
  > Select account (checking, savings)
  > Check all payments to include in this deposit
  > Match the deposit total to your actual bank deposit slip
  > Save

Undeposited Funds should always equal $0 after deposits are posted.

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Credit Memos

When a customer was overbilled or returns goods:

+ New > Credit Memo
  > Customer
  > Amount and reason
  > Save
  > Apply to open invoice OR refund

QBO will prompt to apply it to an open balance or issue a refund check.

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AR Aging Report

Reports > Who Owes You > Accounts Receivable Aging Summary

Shows outstanding balances by age. Run weekly. Filter by customer for collection calls.

Set up Invoice Reminders (Account Settings > Sales > Reminders) to auto-email clients before and after due dates.