Collaborate on Invoice of for Sales with Ease Using airSlate SignNow

Invoice of for Sales

hey guys this is claudia from quickbooks expert so experts x p e r t s uh our website is .quickbooks expertxprts um i am a quickbooks pro advisor certified agent uh with over 20 years of experience um as a bookkeeper so today we're gonna address a very common subject is invoice versus sales receipt so when should i use an invoice and when should i use the sales receipt a lot of my clients have issues and one of the biggest issues is for those clients that use invoice and don't receive payment on the invoice that they go to banking and they accept the transaction and instead of matching to an existing transaction transaction which is the invoice you entered before they just add that as an additional income so you therefore you're duplicating that income or duplicating expense as well if you're entering a bill but how how to avoid that and when should i use the invoice when should i use sales receipt the answer is it's up to you but i'll give you the tips so that you can decide make an informed decision when you enter an invoice in quickbooks we're gonna go right there right now okay all right so we're gonna go over here we're gonna enter an invoice and let's see i provided some services to joe store and um those those were just sales right and it costs a thousand dollars all right so save and close created on the 15th and joe came up to me and said okay here's the payment i sending voice to the customer right and he sent the payment now what um if i go by bank is that this is just a trial account so i don't have any banks set up here if if this this was a valid account we would connect the account and all the transactions in banking would be flowing through through quickbooks right so you will find that transaction because it came through your banking so you find that those transactions in your banking transactions so a lot of times people would just see the transactions and just click on add they would not apply they would not apply to the invoice that you entered before and that's a mistake that's what i was telling you before that creates a duplicate uh duplicate income for that service so how to avoid that there's a workflow in quickbooks when you enter an invoice once you receive the payment for the customer you gotta go to that invoice see that a thousand dollars and receive payment so a thousand dollars so today my customer was very prompt in paying um and he decided to pay the whole amount so sometimes they can play just pay half of that 500 and then you have a balance remaining if that's the case i would change the payment to 500 and then save and close and then when he makes the the next payment i'll i'll select the next payment so in this case i would check whatever the account is going to is going to my checking account and then um once i see that transaction in my banking is going to ask me to match that and i'll go ahead and match it that's what we want with invoice we always want to match so we're going to put here that he did pay a thousand dollars now we're gonna save and close and then the final step on this one would be go to banking see the transaction and match it to this transaction so that's how you work with invoice so you got to write the invoice then you're going to receive payment and matching transactions what about sales receipt sales receipt will eliminate you the the need of enter a payment because in sales receipt you're basically telling the computer that or the system quickbooks that you already receive that payment so let's go ahead and see how this works so we're gonna go to a sales receipt gonna go to joe's store right let's suppose that um well joe sent me a payment or pay me for a service on september 15th so i'm gonna go ahead and it hit my account on september 15th so i'll go ahead and put here joe store september 15th and this was sales and it cost five hundred dollars so this way we're not going to be confused with the other transactions so save and close and this is it for the sales receipt i don't have to receive payment because the sales receipt is already telling uh telling me or i'm already telling the system that this payment has been received and i deposited my bank so now the next step is just to go to to banking and then go ahead and match that transaction to the sales receipt so very simple and it eliminates the need of receiving the payment before your match in the banking transaction so that way you can avoid lots of issues uh with duplicate income in quickbooks online so you don't want duplicate income because you don't want additional um tax liability so with that being said you can make your your decision right now on what would work best for you uh if uh sales receipt or invoice now just wanted to let you know about customers that may have a big project may have a big invoice and they're going to make partial payments so in that situation i would definitely recommend you to do the invoice and the reason why is because you can kind of track the payments towards that invoice now if you do projects you can actually manage all your income and expenses on a project with quickbooks online if you have quickbooks plus or advanced and that is very useful for companies that does large large large large um projects so you know i don't know if you have a 500 000 project and you want to track all the income and expenses related to that specific project but we're going to stick with the invoicing and sales received so i wanted to give you a few tips and in how to avoid those duplicate income transaction and how to decide what is best for your company if you or i should say what's best for a specific transaction should you enter as an invoice or a sales receipt it's up to you whatever works best for you but hope this uh this was useful to you and if you like this video make sure you click on the like button down below and if you'd like to subscribe to our channel go ahead and click on subscribe we'll be recording these videos uh pretty much weekly or by bi-weekly with tips and information on how to manage your quickbooks online and we would love to see you again and until next time i will see you later