Step-by-step guides
Creating Invoices Using QuickBooks
Feb 1, 2025
Before diving into creating invoices in QuickBooks, it's crucial to ensure your account is properly set up. This involves entering your business details, adding products or services, and creating a customer list. Once your setup is complete, you can smoothly proceed through the following steps: setting up your account, creating and customizing invoices, sending them out, and tracking payments. This guide provides a step-by-step overview to help you manage your invoicing efficiently using QuickBooks.
How to Do It: Step-by-Step / Guidelines
Step 1: Set Up Customer Information
1. Log in to QuickBooks and navigate to the "Customers" tab.
2. Select "New Customer" found on the right side of the page to add a new customer profile.
3. Enter customer details.
○ Fill in all relevant customer information, including name, address, contact details, and payment terms.
4. Save the customer profile to ensure it is available for invoicing.
Step 2: Create a New Invoice
1. Navigate to the Invoices section.
○ Go to the "Sales" tab and select "Invoices."
2. Click on "Create Invoice" to begin a new invoice.
3. Select the customer.
○ Choose the customer from the drop-down list or start typing the customer name to auto-fill.
4. Ensure all customer details are correctly populated in the invoice form, including their email, emails that needed to be cc’d or bcc’d to the invoice, and their address
Step 3: Add Products or Services
Enter product/service details.
In the invoice form, add the products or services provided.
Use the drop-down menu to select items from the product/service list in QuickBooks.
Specify quantities and prices.
Enter the description, rate and quantity of each item or service.
Verify that the unit price is correct and adjust if necessary.
Add any applicable taxes.
Ensure the appropriate tax rates are applied to each item.
Confirm that the total amount is accurate, including taxes.
Step 4: Set Payment Terms and Due Date
● Review payment terms.
○ Check that the payment terms (e.g., Net 30) are correct as per the customer agreement.
○ Adjust if necessary.
● Confirm the due date.
○ QuickBooks will automatically calculate the due date based on the payment terms.
○ Verify that the due date is correct and adjust if needed.
Step 5: Review and Send the Invoice
● Review the invoice for accuracy.
○ Double-check all details, including customer information, items, quantities, prices, taxes, and total amount.
○ Ensure there are no errors or omissions.
● Save and send the invoice.
○ Click "Save and Send" to email the invoice directly to the customer.
○ Customize the email message if necessary before sending.
● Print or download the invoice.
○ If needed, print a copy of the invoice or download it as a PDF for records or to send via another method.
Step 6: Track Invoice Status and Payments
● Monitor invoice status.
○ In QuickBooks, navigate to the "Sales" tab and select "Invoices" to view all issued invoices.
○ Check the status of each invoice (e.g., Sent, Viewed, Paid).
● Record payments.
○ When a payment is received, go to the invoice and select "Receive Payment."
○ Enter the payment details, including the amount, date, and payment method.
○ Apply the payment to the appropriate invoice and save the record.
Step 7: Follow Up on Overdue Invoices
● Identify overdue invoices.
○ Use QuickBooks to generate an aging report to identify overdue invoices.
○ Review the report regularly to stay on top of overdue accounts.
● Send reminders.
○ Send reminder emails or make follow-up calls to customers with overdue invoices.
○ Use QuickBooks' automated reminder feature if available.
