QuickBooks Online Sales Process

Skipping steps or inaccurately recording payments and deposits can lead to serious consequences, including the risk of doubling your income on paper creating a misleading picture of your financial situation. As a result, you may end up paying taxes on income that doesn't actually exist, leading to unnecessary financial strain and potential penalties from tax authorities.

Therefore, adhering to each step of the QuickBooks Online sales process is crucial for maintaining accurate financial records, minimizing tax liabilities, and ensuring the long-term success of your business.

Please use the following sales process in QuickBooks Online.

Here’s how to record common customer transactions in QuickBooks Online. Following these workflows can help you organize your cash flow, and track sales, receivables, and profitability more accurately.

Step 1: Creating Estimates and Invoices

Learn how to create estimates and invoices in QuickBooks Online.

• Create and send estimates
• Set up and send progress invoices
• Create and send invoices
• Create sales receipts

Use sales receipts if you receive full payment at the time of the sale. Sales receipts include payments by cash, check or credit card.

Step 2: Receiving Payments

Learn how to receive and record invoice payments in QuickBooks Online. 

Pro Tip: Always review the Deposit to field so you know where your payments are going.

• Record invoice payments
• Handle a customer credit or overpayment
• Splitting a received payment between two companies 

If you need to combine payments processed outside of QuickBooks Payments, follow the steps in the next sections.

Note: If you use QuickBooks Payments to process payments, we handle all the accounting for you.

Group multiple payments together into a single deposit

If you make a bank deposit with several checks in a single deposit, use the Undeposited Funds account to record the payments in QuickBooks. This lets you group multiple payments into one deposit transaction in QuickBooks. Only do this if your bank recorded multiple payments as a single deposit. 

Step 3: Deposit to Undeposited Funds

The Undeposited Funds account keeps a record of payments in QuickBooks until you physically deposit the same payments at your real-life bank. Banks often combine all the payments you deposit into a single transaction. Once you have your deposit slip and know which payments your bank combined, you can do the same in QuickBooks.

• Deposit payments into the Undeposited Funds account

Step 4: Make Bank Deposits

• Record and make bank deposits
• Add a bank deposit in QuickBooks Online mobile 

Group multiple payments together into a single deposit

If you make a bank deposit with several checks in a single deposit, use the Undeposited Funds account to record the payments in QuickBooks. This lets you group multiple payments into one deposit transaction in QuickBooks. Only do this if your bank recorded multiple payments as a single deposit.

Additional Resources

• Record a bounced check using an invoice 
• Run an accounts receivable aging report

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