How to Record Sold Services in QuickBooks Online

Recording sold services in QuickBooks Online is essential for business owners. It ensures accurate tracking and reporting of your finances. This guide will walk you through the steps to record your services properly.

1. Set Up Your Services in QuickBooks Online

Before you sell your services, you need to set them up in QuickBooks Online.

• Access the Products and Services List: Click the gear icon in the upper right corner. Select "Products and Services" under the "Lists" column.
• Add a New Service: Click the "New" button and choose "Service" as the type.
• Enter Service Details:
• Name: Provide a clear name for the service.
• Category: Assign a category if applicable.
• Description: Add a description that will appear on sales forms.
• Sales Information:
• Sales Price/Rate: Enter the standard rate for the service.
• Income Account: Select the appropriate income account to track sales revenue.
• Tax Status: Indicate whether the service is taxable.
• Save the Service: Click "Save and Close" to add the service to your list.

Setting up your services allows for effective invoicing and precise financial reporting.

2. Record a Sale Using a Sales Receipt

When a customer pays at the time of service, you will need to use a sales receipt.

• Create a Sales Receipt:
• Click the "+ New" button. Select "Sales Receipt" under the "Customers" section.
• Enter Customer Information: Choose the customer from the dropdown. If it's a new customer, select "+ Add new" to create their profile.
• Add Service Details: In the "Product/Service" column, select the service provided. Enter the quantity and rate. QuickBooks will calculate the total amount.
• Specify Payment Method: Choose the payment method (e.g., cash, check, credit card). Select the account where the payment will go.
• Save the Sales Receipt: Click "Save and Close" to finish recording the sale.

Using sales receipts helps track immediate payments accurately.

3. Record a Sale Using an Invoice

If the customer will pay later, you need to create an invoice.

• Create an Invoice:
• Click the "+ New" button. Select "Invoice" under the "Customers" section.
• Enter Customer Information: Choose the customer from the dropdown or add a new one.
• Add Service Details: In the "Product/Service" column, select the service. Enter the quantity and rate. QuickBooks will calculate the total amount.
• Set Payment Terms: Specify the due date and any payment terms.
• Save and Send the Invoice: Click "Save and Send" to email the invoice to your customer.

Invoices help you track services where payment is delayed.

4. Match Payments to Invoices

When the customer makes a payment, you need to record it.

• Record the Payment:
• Click the "+ New" button. Select "Receive Payment" under the "Customers" section.
• Enter Payment Details: Choose the customer. Select the invoice being paid. Enter the payment method and deposit account.
• Save the Payment: Click "Save and Close" to record the payment.

This process ensures that your accounts receivable stay updated.

5. Review Sales Reports

Analyzing your sales is important for understanding performance.

• Access Sales Reports: Click on "Reports" in the left menu. Look for and select "Sales by Product/Service Summary."
• Customize the Report: Set the date range and any filters you want.
• Run the Report: Click "Run Report" to see your sales data.

Reviewing sales reports regularly helps clarify revenue streams and optimize offerings.

By following these steps, you will efficiently record services sold in QuickBooks Online. This helps in maintaining accurate financial records and useful reporting.