How Do You Create and Send an Invoice in QuickBooks Online?

Creating an invoice in QuickBooks Online takes a few clicks: select + New, then Invoice, choose the customer, add line items and payment terms, and send. QuickBooks emails the invoice, tracks its status, and lets the customer pay online if you enable payments. Behind the scenes, each invoice adds to your accounts receivable until it's paid.

The clicks are easy. What's worth understanding is when to use an invoice versus a sales receipt, how to get paid faster, and what happens in your books once the money arrives. This guide covers all of it.

Key takeaways

• An invoice records a sale that isn't paid yet and creates accounts receivable; a sales receipt records a sale paid on the spot.
• You create an invoice from + New, then Invoice, adding the customer, line items, and terms.
• Payment terms like Net 30 set the due date and directly affect how fast you get paid.
• Turning on online payments lets customers pay by card or ACH straight from the invoice.
• When an invoice is paid, you record and match the payment so your books and bank reconcile.

What an invoice does in QuickBooks Online

An invoice is a request for payment for something you've delivered but haven't been paid for yet. The moment you create one, QuickBooks increases your accounts receivable, the money customers owe you, and it stays there until the invoice is paid.

This is what separates an invoice from a sales receipt. Use an invoice when the customer will pay later, on terms. Use a sales receipt when they pay at the time of sale, since there's no receivable to track. Choosing the wrong one distorts your books.

Because invoices drive accounts receivable, they're the starting point of your whole collections picture. An invoice that goes out late or unclear is a payment that arrives late, which is why getting the invoice right matters beyond just looking professional.

How to create an invoice in QuickBooks Online

The core workflow is short and consistent. Follow these steps.

1. Start a new invoice. Select + New, then Invoice. You can also go to Sales, then Invoices, then New invoice.
2. Choose the customer. Pick the customer from the dropdown, or select Add New to create one on the spot.
3. Set the dates and terms. Review the invoice date, due date, and terms. In the Terms field, "Net" is the number of days until payment is due, so Net 30 means due in 30 days.
4. Add line items. For each product or service, select it from the dropdown. Select Add product or service for more lines. Quantity, description, and rate fill in from how the item was set up.
5. Apply sales tax if needed. Confirm the correct tax treatment for taxable items.
6. Review and send. Select Review and send to email it immediately, or Save to send later.

Once sent, the invoice status shows as Sent, and your customer receives an email. The receivable is now on your books until it's paid.

Customising your invoice

A clean, branded invoice gets taken more seriously and paid faster. QuickBooks lets you tailor how invoices look and read.

Go to Settings, then Custom Form Styles, to create or edit an invoice template. From there you can add your logo, choose colors, and control which fields appear. You can build more than one template if different parts of your business need different looks.

One thing to watch: some template changes apply across all templates, and editing the standard style can affect existing invoices. Create a new style rather than overwriting the default if you only want the change on some invoices. Review how QuickBooks applies each change before assuming it's limited to new invoices.

Setting payment terms and getting paid faster

Your terms are one of the biggest levers on how fast you get paid. Net 30 is common, but shorter terms like Net 15, or "due on receipt", pull cash in sooner if your customers accept them.

The single most effective change is accepting online payments. Turn on payment options in the invoice and, with QuickBooks Payments, customers can pay by card or ACH directly from the emailed invoice.

Invoices with a pay-now button get paid noticeably faster than ones that ask for a check. Our guide to QuickBooks Payments covers how that works.

Automatic reminders help too. QuickBooks can nudge customers before and after the due date without you chasing them. Faster payment shortens your days sales outstanding, which is the metric that measures how long your cash sits in receivables.

Sending and tracking the invoice

Sending is only the start. QuickBooks tracks each invoice's status so you always know where your money is.

After you send, the invoice moves through statuses: Sent, Viewed when the customer opens it, and Paid once payment comes in. Overdue invoices are flagged so they don't slip. This visibility is what lets you follow up at the right time instead of guessing.

Watching these statuses is how you stay ahead of collections. An invoice that's been viewed but not paid for two weeks is a signal to follow up, and staying on top of every outstanding invoice is what keeps cash flowing rather than piling up as receivables.

Recurring invoices and estimates

For work you bill on a schedule, you don't have to recreate the invoice each time. In the Scheduling section, you can set an invoice to recur automatically, monthly retainers being the classic case. With QuickBooks Payments, you can set up recurring payments to match.

QuickBooks also connects estimates to invoices. If you sent an estimate that the customer approved, you can convert it into an invoice rather than retyping the details, which keeps the quote and the bill consistent. For project-based work, this ties your billing back to what you originally quoted.

Both features cut repetitive data entry. The less you rekey, the fewer errors creep into your billing and the faster invoices go out.

What happens after the invoice is paid?

Here's the part the how-to guides tend to stop short of. Sending the invoice is half the job; recording the payment correctly is the other half. When a customer pays, you record that payment against the specific invoice so the receivable clears.

If you skip this or record it loosely, the invoice can stay open even though you've been paid, or the payment can land unmatched in your bank feed. Either way your accounts receivable and your bank stop agreeing, and reconciliation turns into a hunt.

This is where clean bookkeeping behind your invoices matters. Finlens keeps that side current on top of QuickBooks, so payments match to invoices and reconcile cleanly, which turns invoice reconciliation from a monthly chore into something that mostly handles itself.

Common invoicing mistakes

A few habits cause most invoicing problems. Using a sales receipt when you should use an invoice, or the reverse, is the most common, and it misstates your receivables.

Others include vague line items that prompt customer questions and delay payment, missing or unclear payment terms, forgetting to record payments against the right invoice, and not following up on overdue accounts. Sending invoices late is its own quiet mistake, since a payment clock only starts when the invoice goes out.

Each of these slows down cash or muddies the books. Clear invoices, correct terms, prompt sending, and recorded payments are what keep both moving smoothly.

Conclusion

Creating an invoice in QuickBooks Online is quick, but the details around it decide how fast you get paid and how clean your books stay. Use an invoice for sales paid later and a sales receipt for sales paid on the spot, since that choice drives your receivables.

Set clear terms, turn on online payments, and let reminders do the chasing.

The step most people overlook is what happens after: recording each payment against its invoice so your receivables and bank stay in agreement. Get that right and invoicing becomes a smooth loop from sale to cash to reconciled books.

Keep your invoices clear, your terms tight, and your payments matched, and you'll spend less time chasing money and more time running the business.

Frequently asked questions

How do I create an invoice in QuickBooks Online?

Select + New, then Invoice, or go to Sales, then Invoices, then New Invoice. Choose the customer, set the invoice date, due date, and terms, then add your products or services as line items. Review it and select Review and send to email it, or Save to send later.

What is the difference between an invoice and a sales receipt?

An invoice records a sale the customer will pay later and creates accounts receivable. A sales receipt records a sale paid at the time it happens, so there's no receivable. Use an invoice for terms-based sales and a sales receipt for immediate payment. Choosing wrong distorts your books.

How do I set payment terms on a QuickBooks invoice?

In the Terms field on the invoice, choose a term like Net 30, which sets the due date to 30 days out. You can also pick shorter terms or "due on receipt" to get paid sooner. The due date updates automatically based on the term you select.

How do I let customers pay an invoice online?

On the invoice, select Payment options and turn on the methods you want, such as card or ACH. You'll need to sign up for QuickBooks Payments if you haven't. Once enabled, customers can pay directly from the emailed invoice, which usually gets you paid faster than waiting for a check.

How do I create a recurring invoice in QuickBooks Online?

While creating an invoice, use the Scheduling section to set it to recur on a schedule, such as monthly. QuickBooks will generate and optionally send the invoice automatically each period. With QuickBooks Payments, you can also set up recurring payments so the charge processes on schedule.

How do I know if a customer has seen my invoice?

QuickBooks tracks invoice status. After you send it, the status shows 'Sent', then updates to 'Viewed' when the customer opens it, and 'Paid' once they pay. Overdue invoices are flagged. Watching these statuses tells you exactly when to follow up on an invoice that's been viewed but not paid.

How do I record a payment for an invoice in QuickBooks Online?

Select + New, then Receive Payment. Choose the customer, select the invoice being paid, enter the amount, and save. This clears the invoice from accounts receivable and records the money received. Matching payments to the right invoice is what keeps your receivables and bank reconciled.

Can I customise the look of my QuickBooks invoices?

Yes. Go to Settings, then Custom Form Styles, to create or edit a template with your logo, colours, and chosen fields. You can build multiple templates for different needs. Be careful, since some changes apply across all templates, so create a new style rather than overwriting the default if the change should be limited.