Receive Payments Correctly in QuickBooks Online

Receive payments correctly in QuickBooks Online

Accuracy is Key

There is a reason that bookkeepers and accountants are known as meticulous people. This is because they have been trained to be that way. Good bookkeeping, accounting standards, and ethics require that things balance to the penny. Since bookkeeping records need to balance at the end of an accounting cycle, everything that goes into creating the records must be accurate. That is why it is important that you receive payments correctly.

 QuickBooks Online Helps with Accuracy

As a business owner, you have likely come to rely on good software products to help you streamline your work activities and maintain accuracy. An effective and efficient software is QuickBooks Online.

QuickBooks Online can help reassure the accuracy, efficiency and effectiveness of receiving and recording payments made to you by your customers. Let’s take a quick look at how this online accounting software platform can make a difference in recording payments.

How to Use QuickBooks Online to Receive Payments

Remember, software products are only as reliable as the people using them. They are tools businesses use to gather information or help organize transactions as needed. QuickBooks Online is that kind of tool for small business owners.

Setting Acceptable Cash Receipt Methods

Before you can start to receive payments and record them in QuickBooks Online, you will need to learn how to use the accounting software. QuickBooks Online offers tutorials that are an effective way to go about the training process. Or you can contact us, and we will help you learn and set up your system.

To be able to record your payments, you will first need to tell QuickBooks Online which cash receipt methods you are willing to accept. QuickBooks Online will offer standard options such as credit cards, check or cash. If you would like to accept payment through a different format, you can add, edit or delete payment methods as you see fit.

Creating Invoices to Receive Payments

Once your payment preferences are set up, you can start accepting payments through the invoices you create. An invoice serves as a tool for businesses to notify customers of the amount they owe and when it is due. QuickBooks Online offers two different options for creating an invoice. You can manually create one or create one by matching it to a sales transaction.

To be able to create an invoice, you will need to allocate it to a customer. You will do this by using the drop-down menu. This will give you the option of assigning the invoice to an existing customer or a new one. Once a customer has been added, a profile will be saved in your QuickBooks Online account. This profile will include, name, contact information, and shipping information for your customer.  There will also be a spot in which you can designate the customer’s preferred payment method.

Applying Payments

Step-By-Step

  • From the Customer Payment window under the “Received From” function, you will select the customer
  • The customer’s list of open invoices will appear as well as the customer’s outstanding balance
  • In this window, you will enter the total amount of the payment, plus any supporting information like check number or payment date
  • If it’s a credit/debit card payment, you will be prompted to enter relevant card information
  • After entering the payment information, you can save and move on

If you accept a cash payment without invoicing, QuickBooks Online has an option to handle that, along with any customer overpayments or underpayments.

We Can Help You Receive Payments the Right Way

If this all sounds straightforward and easy, it’s because it is. However, it is important you make sure your QuickBooks Online account is setup properly for your business. If you need help with that, we are happy to offer our QuickBooks training and support services. We also can help you setup your QuickBooks Online account. Visit QBO Services – The Barklee Institute for more information. A little help from us can go a long way towards ensuring that your business records are clean and accurate.

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