Search

Tracking What Customers Owe You is as Easy as 1...2...3!

When your customers don’t pay you in full, you need to keep track of how much they owe you. This is called Accounts Receivable. There are the three steps involved in properly tracking your Accounts Receivable in QBO:

  • Step 1: Prepare an Invoice

  • Step 2: Receive Payment

  • Step 3: Deposit the Payment


Step 1: Prepare an Invoice

Accounts Receivable starts with an Invoice. An Invoice lists all the details about the sale, including who is purchasing the goods or services, what they are purchasing, the quantity and price or rate of each item, the total amount due, terms of the sale, etc.

To create an invoice:

  1. Click Quick Create (+) and then Invoice. An invoice window will pop down.

  2. Enter the name of the Customer and tab through the fields to complete the invoice.

  3. To print the invoice, click “Print or Preview” on the bottom black bar.

  4. Save the Invoice.


Step 2: Receive Payment

When you receive payment from a customer for an invoice, you must record it as a customer payment in order for QBO to mark the invoice as being paid and update Accounts Receivable.

To receive a payment:

  1. Click Quick Create (+) and then Receive Payment. A Receive Payment window will pop down.

  2. Fill in the customer’s name, amount, date, payment method and amount.

  3. Check the box in the left column next to the invoice to which the payment applies.

  4. Save the payment.


Step 3: Deposit the Payment

Now you need to record the deposit of that payment. This final step allows you to group several payments into one deposit so QBO will match your bank account.

To make a deposit:

  1. Click Quick Create (+) and then Bank Deposit. The Deposit window will drop down.

  2. Verify that the bank account in the first field is correct.

  3. Enter the date.

  4. Select the customer payments in the “Select Existing Payments” section that you will be depositing.

  5. Add any additional amounts to be deposited in the “Add New Deposits” section.

  6. Verify that the Total at the bottom matches what you are depositing.

  7. Save the deposit.


So now you know how tracking what customers owe you is as easy as 1…2…3!

6 views0 comments