How to Create, Send, and Track Invoices in QuickBooks Online

When you click Send on an invoice, you expect to get paid. QuickBooks Online makes that loop tight: go to + Create > Invoice, add your customer and line items, and hit Review and send. If you have QuickBooks Payments enabled, the invoice lands in your customer's inbox with a Pay Now button so they can pay by card, ACH, PayPal, or Venmo, and QuickBooks Online records it automatically.

How Do You Create an Invoice in QuickBooks Online?

You create invoices from the + Create button in the top-left corner of QuickBooks Online. The invoice form pulls in your saved customer information and product or service items, so the more you've set up in advance, the faster the process gets.

Step-by-step: Creating and sending an invoice

1. Select + Create, then select Invoice. Alternatively, go to All apps > Sales & Get Paid > Invoices and select Create invoice.
2. Select a customer from the Add customer dropdown. Use + Add New to add a new customer on the spot.
3. Confirm the customer's email address — this is where the invoice will be sent.
4. Review and adjust the Invoice date, Due date, and Terms as needed. In the Terms field, "Net" refers to the number of days until payment is due (e.g., Net 30 means payment is due 30 days from the invoice date).
5. For each line item, select a product or service from the dropdown. To add more line items, select Add product or service.
6. Select how you want to calculate the charge: flat rate, by hour, or by item. Enter a quantity and rate if needed.
7. Apply a discount or sales tax if applicable.
8. When ready, select Review and send to review and email the invoice immediately, or select Save to hold it as a draft for later.

When the invoice is sent, its status changes to Sent and your customer receives an email with the invoice attached as a PDF.

How Do You Let Customers Pay Your Invoice Online?

With QuickBooks Payments active, every invoice you send includes a Pay Now button. Customers can pay by credit card, ACH bank transfer, PayPal, or Venmo without creating an account or leaving the email.

To turn on payment options for your invoices:

1. On any open invoice, select Manage (the gear icon near the top of the invoice form).
2. Select Payment options.
3. Toggle on the payment methods you want to accept: credit card, ACH, PayPal, or Venmo.
4. QuickBooks Online applies your settings to all existing and future invoices automatically.

If you haven't signed up for QuickBooks Payments yet, select Set up payments when prompted. The application is built into QuickBooks Online.

Once a customer uses the Pay Now button to complete their payment, QuickBooks Online automatically handles the processing, updates the corresponding invoice balance, and updates its status to Paid.

For additional details, see the following article: Receive and process payments in QuickBooks Online.

How Do You Set Up Recurring Invoices in QuickBooks Online?

Recurring invoices automate billing for clients you charge on a fixed schedule: monthly retainers, subscriptions, or any regular service with a consistent price.

Step-by-step: Setting up a recurring invoice

1. Create the invoice as normal, but do not send it yet.
2. Select Manage (the gear icon on the invoice form).
3. Select Scheduling.
4. Toggle on recurring invoices and set the Type: Scheduled (QuickBooks Online sends automatically), Reminder (QuickBooks Online reminds you to review and send), or Unscheduled (you trigger it manually when needed).
5. Set the Interval — daily, weekly, monthly, or custom.
6. Set the Start date and, optionally, an end date or number of occurrences.
7. Select Save.

When you schedule recurring invoices, QuickBooks Online sends them out automatically on your specified date, providing customers with the standard Pay Now link. Check out this article for further reference: Create recurring transactions in QuickBooks Online

How Do You Track Whether an Invoice Has Been Paid?

All your invoices — open, sent, and paid — are visible under All apps > Sales & Get Paid > Invoices. The status column shows where each one stands.

For a quick view of all outstanding invoices grouped by how long they've been unpaid, run the Accounts Receivable Aging Summary report. Go to Reports, search "Accounts Receivable Aging Summary," and run it. Any invoice in the 31-60 day or 60+ day columns needs follow-up.

FAQ

Can I customize how my invoices look? Yes. On any open invoice, select Edit company in the invoice header to update your logo and company contact info. For deeper customization — colors, layout, which fields appear — go to Settings (gear icon) > Custom form styles. Changes apply to all future invoices automatically.

What if I need to invoice a customer in a different currency? QuickBooks Online Plus and Advanced support multicurrency. Once enabled under Settings > Account & Settings > Advanced, you can assign a currency to each customer and QuickBooks Online handles the conversion in your reports. QuickBooks Online Essentials, Plus, and Advanced support multicurrency, but this feature isn't available on Simple Start. 

Can I attach a file to an invoice? Yes. On the invoice form, scroll to the bottom and select Attachments to upload a PDF, image, or other file. It'll be included in the email your customer receives alongside the invoice.

What happens if a customer pays a different amount than what's on the invoice? Record the payment for the amount actually received. If it's a partial payment, the invoice stays open with the remaining balance showing. If the customer overpaid, QuickBooks Online will prompt you to apply the credit to a future invoice or issue a refund.

How do I record a payment if a customer pays by check or cash instead of online? Open the invoice and select Receive payment. Enter the payment amount and method, and select the bank account where the money is going. QuickBooks Online marks the invoice as paid and records the deposit.

Key Takeaways

• Create invoices from + Create > Invoice. Set the customer, items, dates, and terms, then select Review and send.
• QuickBooks Payments adds a Pay Now button to every invoice. Customers can pay by card, ACH, PayPal, or Venmo without leaving their email.
• Payment options and recurring invoice settings are both accessed through the Manage gear icon on the invoice form.
• Track invoice status under All apps > Sales & Get Paid > Invoices. Run the Accounts Receivable Aging Summary report weekly to catch overdue invoices early.
• If a customer pays by check or cash, record the payment manually by opening the invoice and selecting Receive payment.

Still stuck?

Drop a question in the comments below. For payment setup issues or anything account-specific, go to Help (?) in QuickBooks Online and select Contact us.

Helpful Resources

• Create invoices in QuickBooks Online: Official step-by-step guide for creating, customizing, and sending invoices.
• Record invoice payments in QuickBooks Online: How to record payments received by check, cash, or external payment platform.
• How to Avoid Reconciliation Mistakes in QuickBooks Online: Keeping your invoices and payments clean makes reconciliation much easier.
• How to Connect Your Bank in QuickBooks Online: How your bank feed works and how to review transactions once they download.