Getting paid starts with sending invoices. QuickBooks Online makes this process straightforward once the initial setup is complete—but that setup involves decisions that affect how professional invoices look and how efficiently payments flow into the business.

This guide walks through the complete QuickBooks Online invoicing process: from initial configuration to creating invoices, customizing their appearance, sending them to customers, and tracking payment status. The steps apply to all QuickBooks Online subscription levels, though some advanced features require Plus or Advanced plans.

Business owners new to QuickBooks will find a complete roadmap for getting invoicing right from the start. Those already using the platform may discover customization options or efficiency features they’ve overlooked.

Before Creating the First Invoice: Essential Setup

A few configuration steps make invoicing smoother and more professional.

Sales Settings

Go to Settings → Account and Settings → Sales. Several options here affect invoicing:

Default Payment Terms: Sets automatic due dates for invoices. “Net 30” means payment due 30 days after invoice date. Options range from “Due on Receipt” to “Net 60” and custom terms.

Default Invoice Message: Text that appears on every invoice. Something like “Thank you for your business. Please remit payment by the due date.” keeps invoices professional without requiring custom text each time.

Service Date: Enable this to track when services were performed separate from invoice date. Useful for businesses that bill after work completion.

Shipping: Enable if physical product shipping applies to the business.

Payment Options

Under Settings → Account and Settings → Payments, configure how customers can pay invoices:

QuickBooks Payments: Enabling this adds “Pay Now” buttons to invoices, allowing customers to pay via credit card or bank transfer directly. QuickBooks charges processing fees (typically 2.9% + $0.25 for cards, 1% for bank transfers) [VERIFY], but the convenience often accelerates payment.

Other Payment Methods: List accepted payment methods (check, wire transfer, etc.) even if not processing through QuickBooks.

Creating a Basic Invoice

With setup complete, creating invoices takes just a few steps.

Step 1: Start a New Invoice

Click + New (green button, upper left) → Invoice. The invoice creation screen opens.

Step 2: Select or Add Customer

The Customer dropdown shows existing customers. Select the appropriate one, and QuickBooks populates their billing information automatically.

For new customers, click + Add new in the dropdown. Enter customer name, email, and billing address at minimum. The email address enables electronic invoice delivery.

Step 3: Verify Invoice Details

Invoice Date: Defaults to today. Adjust if backdating or future-dating is needed.

Due Date: Calculates automatically based on default payment terms. Override manually if this invoice requires different terms.

Invoice Number: QuickBooks assigns sequential numbers automatically. The number can be edited, but maintaining sequence simplifies record-keeping.

Step 4: Add Products or Services

The line item section is where billable items appear. Two approaches exist:

Using Saved Products/Services: Click in the Product/Service column and select from the dropdown. QuickBooks populates description, rate, and amount. Adjust quantity as needed.

Manual Entry: Type directly in the description field without selecting a saved item. Enter rate and quantity manually. This works for one-off charges but doesn’t create reusable items.

For multiple line items, press Tab after completing one line to add another.

Step 5: Review Totals

QuickBooks calculates line item totals, subtotals, taxes (if configured), and invoice total automatically. Verify these numbers match expectations before proceeding.

Step 6: Save or Send

Three options appear at the bottom:

Save and Close: Saves the invoice without sending. Use this for invoices that will be printed/mailed or sent later.

Save and Send: Opens email composition with the invoice attached. Customize the email message, then send.

Save and New: Saves the current invoice and immediately opens a blank invoice form. Useful when creating multiple invoices in sequence.

Customizing Invoice Appearance

Default QuickBooks invoices are functional but generic. Customization creates more professional, brand-consistent documents.

Accessing Customization

Navigate to Settings → Custom Form Styles. Click New Style → Invoice to create a custom template, or Edit an existing style.

Design Tab Options

Template: Choose from several built-in layouts. “Airy new” and “Modern” work well for service businesses. “Classic” suits traditional industries.

Logo: Upload or adjust logo positioning and size.

Color Scheme: Change accent colors to match brand guidelines. The color picker accepts hex codes for precise matching.

Font: Select from available font families and adjust sizes for headers and body text.

Content Tab Options

This tab controls which fields appear on invoices:

Header Section: Choose whether to display company name, address, phone, email, website. Toggle each field independently.

Activity Table: Configure which columns appear in the line item area. Standard columns include Service Date, Description, Quantity, Rate, and Amount. Enable or disable based on business needs.

Footer: Add custom footer text, display payment terms, configure discount and deposit fields.

Reviewing Changes

Click Preview PDF to see how changes affect the printed/PDF version. The preview uses actual invoice data if available.

Save the template and set as default if it should apply to all new invoices.

Advanced Invoice Features

Beyond basic invoicing, QuickBooks offers several features that improve efficiency or handle special situations.

Recurring Invoices

For customers billed the same amount regularly (monthly retainers, subscriptions, maintenance agreements), recurring invoices eliminate repetitive data entry.

Create a regular invoice, then click Make Recurring at the bottom of the invoice screen. Configure:

Template Name: For internal reference
Type: Scheduled (automatic) or Reminder (prompts before creation)
Interval: Daily, weekly, monthly, yearly
Start/End Dates: When recurrence begins and terminates

Scheduled recurring invoices create and optionally send invoices automatically. This “set and forget” approach ensures consistent billing without manual intervention.

Progress Invoicing

For projects billed in stages, progress invoicing tracks partial billing against estimates.

First, create an Estimate for the full project value. When billing for completed portions, convert the estimate to an invoice:

Open the estimate
Click Create Invoice
Select A percentage of each line item or Custom amounts for each line
Enter the percentage or amounts being billed
QuickBooks tracks remaining unbilled amounts

Subsequent invoices against the same estimate show what’s been billed and what remains.

Billable Expenses

Expenses incurred on behalf of customers can be marked billable and added to invoices automatically.

When recording an expense (via + New → Expense or Check), enable Billable and select the customer. These expenses appear in a sidebar when creating invoices for that customer. Check the items to include and QuickBooks adds them as line items.

Deposits and Retainers

Collecting payment before work begins is possible through the deposit feature:

Create the invoice with full project value
In the Deposit field, enter the amount to collect upfront
The invoice shows deposit due and remaining balance

Alternatively, create a separate invoice for the deposit only, then a final invoice for the balance.

Sending Invoices

QuickBooks provides multiple delivery options.

Email Delivery

The most common method. From the invoice, click Save and Send to compose an email:

To: Pre-populated with customer email
Cc/Bcc: Add additional recipients if needed
Subject: Customize or use default
Body: Edit the message or use saved default text

The invoice attaches automatically as a PDF. If QuickBooks Payments is enabled, a “Pay Now” link appears in the email.

Print/Mail

For customers requiring paper invoices:

Save the invoice
Click Print from the invoice or from the Sales → Invoices list
Print directly or save as PDF for later printing

Batch printing is available: select multiple invoices from the Invoices list and choose Print from the batch actions menu.

Customer Portal

Customers can view all their invoices and payment history through the QuickBooks customer portal—if this feature is enabled in company settings. The portal provides self-service access without requiring individual email searches.

Tracking Invoice Status

Understanding which invoices are paid, which are overdue, and which need follow-up keeps cash flow predictable.

Invoice Status Indicators

QuickBooks marks invoices with status badges:

Draft: Saved but not sent
Sent: Delivered to customer
Viewed: Customer opened the email (if tracking enabled)
Partial: Partially paid
Paid: Payment received in full
Overdue: Past due date with balance remaining

Accounts Receivable Reports

Navigate to Reports → Accounts Receivable Aging Summary for a snapshot of outstanding invoices grouped by age (Current, 1-30 days, 31-60 days, etc.).

Accounts Receivable Aging Detail shows individual invoices with customer names, amounts, and days outstanding.

These reports identify which customers need follow-up and how much total receivable is at risk.

Payment Reminders

QuickBooks can automatically remind customers about unpaid invoices:

Settings → Account and Settings → Sales → Reminders

Configure automatic reminders to send a specified number of days after the due date. Multiple reminder stages can be set (first reminder at 7 days overdue, second at 14 days, etc.).

Recording Payments

When payments arrive, recording them closes out invoices and updates financial records.

Payment Against Specific Invoice

Navigate to + New → Receive Payment. Select the customer, then check the invoice(s) being paid. Enter payment date, method, and reference number (check number, transaction ID, etc.).

The invoice status changes to Paid (or Partial if not fully paid), and the payment deposits to the selected account.

Automatic Payment Recording

If using QuickBooks Payments, customer payments made through invoice “Pay Now” buttons record automatically. The system matches payment to invoice without manual entry.

Bank feed transactions can also match to outstanding invoices through the Banking → For Review workflow.

Troubleshooting Common Issues

A few situations cause confusion for new QuickBooks users.

Invoice Shows Wrong Tax

Verify that the customer’s tax status and location are configured correctly in their customer record. Also check that products/services have appropriate tax categories assigned.

Can’t Find Sent Invoice

Check filters in the Sales → Invoices list. The default view may hide certain statuses. Click Filter and ensure “All Statuses” is selected.

Customer Says Invoice Not Received

Verify the email address in the customer record. Check the invoice detail to confirm it shows “Sent” status. Consider resending or using an alternate email address.

Invoice Number Out of Sequence

QuickBooks allows manual invoice number editing, which can create gaps. To reset numbering, edit an invoice and change its number—subsequent invoices will increment from the new number.

Key Takeaways

Complete setup before invoicing. Company info, payment terms, and payment options should be configured first.
Save products/services for repeated use. Reusable items speed up invoice creation and ensure consistency.
Customize invoice appearance. Professional-looking invoices with logos and brand colors improve perception.
Use recurring invoices for regular billing. Automation prevents missed invoices and saves time.
Monitor aging reports weekly. Outstanding receivables require attention before they become collection problems.

Conclusion

QuickBooks Online invoicing handles everything from simple one-time bills to complex progress billing across multi-phase projects. The system’s strength lies in flexibility—basic invoices take minutes to create, while advanced features accommodate sophisticated billing needs.

The key to effective invoicing isn’t mastering every feature. It’s establishing consistent processes: standard payment terms, regular invoice delivery, systematic follow-up on outstanding balances. QuickBooks provides the tools; business owners provide the discipline.

For those still finding QuickBooks invoicing confusing, or businesses wanting help setting up efficient billing processes, professional QuickBooks support can accelerate the learning curve and establish best practices from the start.

Cheralis Financial is a QuickBooks Certified ProAdvisor serving businesses throughout Gwinnett County. Contact us for QuickBooks setup, training, or ongoing bookkeeping support.

How to Create Invoice in QuickBooks Online: A Step-by-Step Guide