Effective invoicing is the lifeblood of any successful business. Yet many small business owners struggle with creating professional, accurate invoices that get paid on time. Whether you’re new to QuickBooks Online or looking to optimize your current invoicing process, mastering this essential business bookkeeping function can dramatically improve your cash flow.
As experienced providers of bookkeeping services for businesses, we’ve helped countless clients streamline their invoicing workflows in QuickBooks Online. This comprehensive guide will walk you through everything you need to know about creating professional invoices that get paid faster.
Why Professional Invoicing Matters
Before diving into the technical steps, understand why proper invoicing is crucial for small business bookkeeping:
Cash Flow Management: Professional invoices with clear terms get paid 40% faster than informal billing methods, directly impacting your ability to cover expenses and invest in growth.
Brand Reputation: Your invoice is often one of the last impressions you make on a client. A polished, professional invoice reinforces your credibility and attention to detail.
Financial Accuracy: Systematic invoicing through online bookkeeping software like QuickBooks ensures every transaction is properly recorded, making tax time and financial reporting significantly easier.
Video Tutorial: Creating Invoices in QuickBooks Online
Watch our comprehensive video tutorial that walks you through the entire invoicing process in QuickBooks Online:
How to Create Invoices in QuickBooks Online
In this video, we demonstrate the complete invoicing workflow, from setting up customer information to customizing invoice templates and tracking payment status. Follow along for the exact clicks and settings that will transform your invoicing process.
Step-by-Step Guide to Creating an Invoice
Step 1: Navigate to Invoice Creation
From your QuickBooks Online dashboard, click the “+ New” button in the upper left corner, then select “Invoice” from the dropdown menu under the Customers section.
Step 2: Select Your Customer
Begin typing your customer’s name in the customer field. QuickBooks will auto-populate matching customers from your database. Select the correct customer, and their saved information will automatically fill the invoice.
Pro Tip: Add new customers directly from the invoice screen by clicking “Add new” to save time.
Step 3: Configure Invoice Details
Set the essential parameters:
- Invoice Date: Defaults to today, but can be adjusted
- Due Date: Automatically calculates based on payment terms
- Invoice Number: Auto-generates sequentially
- Billing Address: Verify accuracy
Step 4: Add Products or Services
Detail what you’re billing for:
- Click in the Product/Service column
- Select items from your pre-configured list
- Enter the quantity of each item
- Verify the rate (automatically populated)
- Add descriptions for clarity
QuickBooks automatically calculates line totals and overall invoice amounts, including applicable taxes.
Step 5: Review and Customize
Before sending:
- Apply discounts or adjustments if needed
- Verify tax settings are correct
- Add payment terms and custom messages
- Include supporting documents as attachments
Step 6: Preview and Send
Always review your invoice to ensure accuracy. Then choose your sending option:
- Save and Send: Immediately emails to the customer
- Save and Close: Saves as a draft
- Print or Preview: Generate PDF for manual delivery
QuickBooks automatically tracks invoice status (sent, viewed, paid), giving you real-time visibility.
Advanced Features for Efficient Bookkeeping
Recurring Invoices
For customers with regular billing cycles:
- Create a standard invoice
- Click “Make Recurring“
- Set frequency and automatic sending preferences
- Define start and end dates
This automation saves hours each month for subscription models or retainer clients.
Progress Invoicing
For large projects requiring milestone payments:
- Create an estimate first
- Convert to an invoice
- Select “Progress Invoice“
- Choose the percentage to bill
- Track remaining balance
Payment Integration
Accept payments directly through invoices by enabling QuickBooks Payments for credit card processing, ACH transfers, and automatic payment reconciliation.
Best Practices for Invoice Management
Implementing these accounting for small businesses best practices improves payment collection:
Timing and Consistency
- Send invoices immediately upon project completion
- Maintain consistent billing schedules
- Follow up promptly on overdue accounts
Clear Communication
- Use detailed descriptions
- Include multiple payment options
- State late fees clearly if applicable
- Provide itemized breakdowns
Professional Presentation
- Customize templates to match your brand
- Proofread carefully
- Include all contact information
Common Invoicing Mistakes to Avoid
Incomplete Customer Information: Missing email addresses prevent delivery and delay payment.
Vague Descriptions: Generic line items like “Services Rendered” create confusion. Always be specific.
Incorrect Tax Applications: Charging tax to exempt customers creates compliance issues.
Delayed Sending: Waiting after service delivery reduces urgency to pay.
When to Consider Professional Support
While QuickBooks Online makes invoicing accessible, many businesses benefit from professional bookkeeping services:
- You’re spending more than 5 hours weekly on invoicing
- You’re experiencing cash flow problems
- You’re making frequent errors requiring corrections
- Your business is growing, and invoice volume is unmanageable
At Giordano Bookkeeping, we provide comprehensive remote bookkeeping services for small businesses, including complete accounts receivable management, financial reporting, and strategic guidance to improve your cash flow and profitability.
Take Control of Your Invoicing Today
Mastering invoicing in QuickBooks Online enhances your cash flow, reduces administrative burden, and improves your professional image. By following this guide and our video tutorial, you’ll create professional invoices with confidence.
Effective invoicing combines technical skills with smart business practices. When paired with consistent follow-up and professional presentation, your invoicing system becomes a competitive advantage that supports sustainable growth.
Ready to optimize your invoicing process? The team at Giordano Bookkeeping offers comprehensive small business bookkeeping services tailored to your needs. Whether you need training, system setup, or full-service support, we’re here to help you achieve financial clarity.
Contact us today to learn how our experienced professionals can transform your invoicing process and provide the accurate, timely, and tax-ready books your business deserves.
About Giordano Bookkeeping: As a division of Thomas C. Giordano, PC, we provide comprehensive bookkeeping and accounting services to small businesses. With decades of experience in QuickBooks Online, we help business owners master their financial systems and make informed decisions for sustainable growth.
