Creating Invoices in QuickBooks: A Step-by-Step Guide

Managing your small business’s finances can be daunting, especially when it comes to invoicing. Fortunately, QuickBooks provides a user-friendly platform for creating invoices, whether you’re using the Online or Desktop version. In this blog post, I'll walk you through each step of the process and share some best practices to streamline your invoicing, save time, and grow your business.

Creating an Invoice in QuickBooks Online

  1. Access the Invoice Feature: Start by logging into your QuickBooks Online dashboard. Look for the New button on the left-hand menu and select Invoice from the Customers section.
  2. Select or Add a Customer: In the customer drop-down menu, select an existing customer. If it’s a new customer, simply click Add New to fill in their details.
  3. Set Payment Terms: Establish clear payment terms like Net 30 to communicate when you expect payment.
  4. Add Products or Services: In the Product/Service column, select the items being billed. If it’s not on the list, just click Add to create one.
  5. Enter Quantity and Rate: Fill in the quantity and rate for each item. QuickBooks will calculate the total for you automatically.
  6. Apply Taxes and Discounts: If necessary, apply the right tax rate. To issue a discount, add a line labeled "Discount" and enter the amount.
  7. Customize the Invoice: Want to add a personal touch? Click Customize to modify the invoice appearance, inclusively embedding your company logo.
  8. Preview and Send: Click Print or Preview to view your invoice. Once happy, hit Save and Send to email it directly to your customer.

Creating an Invoice in QuickBooks Desktop

  1. Open the Invoice Window: From the top menu, navigate to Customers and select Create Invoices.
  2. Choose the Customer or Job: From the drop-down list, select the customer or job you are billing. Click to add a new customer if needed.
  3. Select an Invoice Template: QuickBooks lets you choose from default invoice templates which you can customize. Pick one from the Template drop-down menu.
  4. Fill in Invoice Details: Enter the Invoice Date and adjust any Terms as per your agreement with the client.
  5. Add Items: In the invoice detail section, select the products or services you’re billing for. QuickBooks will auto-fill their descriptions and rates.
  6. Apply Taxes and Discounts: Choose the appropriate tax codes for items. Add any discounts in the Discount field or as a line item.
  7. Save and Send the Invoice: Choose Save & Close to keep the invoice in QuickBooks. Click Save & Send to email it directly, entering the recipient's email address.

Best Practices for Invoicing

  • Set Clear Payment Terms: Clearly define terms like Net 30 to set expectations and encourage prompt payments.
  • Send Invoices Promptly: To improve cash flow, send invoices immediately after delivering goods or services.
  • Automate Recurring Invoices: If you often bill repeat clients, set up recurring invoices to save time and maintain a steady cash flow.
  • Follow Up on Overdue Invoices: Utilize QuickBooks to send reminders for overdue invoices and consider applying late fees to encourage payment.
  • Integrate Payment Options: Make it easy for customers to pay by offering online payment methods such as credit cards or ACH transfers.

By following these steps and best practices, you can create and manage invoices efficiently in QuickBooks, ensuring you improve cash flow instilling confidence in your clients regarding your professionalism. Happy invoicing!