How to Receive and Record Payments from Customers in QBO QuickBooks Online

So, you've invoiced your customers and now it's time to collect payments for sales in QuickBooks. Let's walk through the process step by step to keep your Accounts receivable (AR) up to date and accurate.

Receiving Payments

1. Accessing the Payment Menu: Start by navigating to the plus menu in QuickBooks and selecting "Receive Payments".
2. Selecting the Customer: Choose the customer who made the payment from the list.
3. Entering Payment Details: Input the payment date, method (e.g., check), and reference number (if applicable).
   

Handling Deposits

1. Understanding Undeposited Funds: Learn about 'undeposited funds', the holding place for payments until they're deposited in your bank account.
   
2. Choosing the Deposit Account: Decide whether to deposit payments individually or group them in undeposited funds for a single deposit.

Recording Deposits

1. Recording the Deposit: If grouping payments, record the deposit in QuickBooks, ensuring each payment is accurately matched with its invoice and the total matches your bank deposit slip.
2. Saving and Closing: Once you're done recording, save and close the transaction.
   

Conclusion

Now you're ready to efficiently manage your payments in QuickBooks. Try receiving a recent payment from a customer to put these steps into practice.

key talking points and problems solved by this guide:

1. Receiving Payments in QuickBooks: The guide explains the process of receiving payments from customers in QuickBooks Online, starting from accessing the option in the menu to selecting the customer who made the payment.
   
2. Payment Details: It emphasizes the importance of entering accurate payment details such as the payment date, method of payment, and reference number (e.g., check number).
3. Handling Deposits: It discusses the concept of 'undeposited funds' in QuickBooks Online and when to use it, as well as how to handle deposits if payments are grouped together for a single deposit.
   
4. Recording Deposits: The guide explains how to record deposits in QBO, ensuring that all payments are correctly matched with their respective invoices and that the total matches the deposit slip from the bank.
   
5. Saving and Closing: It instructs users on how to save and close transactions once they are done recording payments or deposits.