How to Receive Payments in QuickBooks Online

Collection of payments is vital to the financial prosperity of any business. A potent and simplified version of this process is produced by QuickBooks Online. Using the article, we will be taking a look at the basics of setting up and using payment reception on QuickBooks Online.

How to Check If Your Business Qualifies for QuickBooks Payments?

Most certainly, every business can get payments via QuickBooks Online. The main thing needed is to establish a QuickBooks Payments account, which has an application and acceptance procedure. Intuit produces the QuickBooks software and verifies that you are eligible by using the information you give about your business and its owners. After being approved, you are able to accept a broad variety of types of payments, such as:

• Credit cards
• Debit cards
• ACH bank-transfer
• Checks and cash
• Mobile payments

How to Receive Payments in QuickBooks Online?

QuickBooks Online accepts payments, and the receivable of such payments is a multifaceted process, which proceeds as follows: The preparation of the account, which consists in the creation of a type of an account, an account number, and setting the information on finance.

Install Payment Preferences

You must set up your QuickBooks Payments account before you are able to receive online payments.

• Register in QuickBooks Payments: Click the Settings (gear button) and choose Account and settings. This is where you can give it a try by going to the Payment tab and getting started with configuring your QuickBooks Payments account. You will be required to submit details regarding your business, the persons behind the business and your bank account details.
• Link with a Bank Account: In the set up stage, one will connect the bank account where the deposits are to be received.
• Set up Invoice Payment options: Open the Account and Settings menu and go to Sales then choose Invoice payments. This is where the user can activate the payment options you want to provide to your customers and on the page, you can add any payment instructions which will appear on your invoices.

Create Invoices

As soon as you install your payment methods, it is possible to generate and send your invoices to the clients.

• Select Go to + New then Invoice.
• Select a customer on the dropdown (or create one).
• Enter an invoice date, payment terms, due date.
• Add your products you are invoicing.
• This option you have on the invoice will have a section titled ways to pay, where your customer will have the options of payments you have activated made visible.
• You can finally Save and email the invoice to your customer.

Take Online Payments

When invoice is sent to your customer, he or she has a chance of paying the money online with a Click on the Pay Now button. A payment is processed through QuickBooks Payments and is automatically posted to your QuickBooks Online account.

• Credit Cards and Debit Cards: The customers can safely insert their card details.
• ACH Bank Transfers: A customer has an option to plug an account to ensure that the transfer is done directly to ACH bank.

In QuickBooks Online, How long does it take to Receive Payments?

The duration of payment settlement will rely on some factors:

• New Deposits: In case of first-time depositors, initial deposits might consume a maximum of five business days as the system clear your account with the Intuit office.
• Standard Deposits: Payments with credit cards, PayPal, Venmo, and ACH made prior to 3 PM PT after your first deposits are made will normally land in your bank account the following business day. Payments made after 3 PM PT will require 2 business days.
• Weekends and Holidays: The transactions at banks cannot be made at weekends or federal holidays so it is possible to lengthen the time of deposit.

Recording Invoice Payments

Whether you get paid online, through a check or a spot cash, it is important to capture it right at QuickBooks in order to have an accurate set of books.

• Click + New and click Receive Payment.
• Choose the customer, the date at which the payment is to be made and how it will be paid.
• Choose the bills that the payment is related to.

Choose Deposit to account in which you should note the money. This is an important step, particularly when you take the “Undeposited Funds” account to consolidate several payments in preparation of making one deposit at the bank.

Payment options in QuickBooks Online

If you want to get paid in QuickBooks Online, you first need to know what types of payments it supports. With QuickBooks Payments, you can easily accept:

• Credit cards
• Debit cards
• ACH bank transfers

Keep in mind, your payment options and status may look a little different depending on:

• The type of business you run
• Who your customers are
• Your specific situation

Let’s go through the different possibilities step by step.

QuickBooks Online Instant Payments

QuickBooks provides, as a service to be paid, an Instant Deposit option so that you can access the money on an approved payment within 30 minutes of the application, even when the bank is closed. This is an appropriate option which is normally given when selecting credit card payment and can come in handy as a valuable cash flow management asset.

Late Payments in QuickBooks Online

Your payments could be late in few instances. This may be attributable by:

• Payment Holds: Intuit can put a hold on a payment due to many reasons, including a large or unusual amount, high refund rates or a new account.
• Bank Holds: Your bank can retain the funds in the interest of carrying out verifications.
• Wrong Account Details: Missing some information about your bank accounts or contact number can slow things down.

In case of a payment withholding, you would get an alert in QuickBooks showing the way on how to remedy the situation.

Partial Payments in QuickBooks Online

Partial payments with QuickBooks Online are simple. Given that a customer might pay part of an invoice, then you may record the amount paid and the invoice is not closed as the balance is due.

• In the upper right, choose + New, then Receive Payment.
• Pick the customer and the invoice.
• Partial amount received is to be put in the Payment column.

To track the partial payment, you can update the invoice keeping the details of the amount that you have received, and a new reminder might be sent to the customer regarding the remaining balance.

Payments via QuickBooks Mobile App

In QuickBooks, you can take payments wherever you go with the mobile app and the GoPayment app. It would be especially helpful to those businesses that run offline.

• Mobile Card Reader: To accept credit card payments you can attach a card reader to phone or tablet using Bluetooth.
• Pay with iPhone: The app supports tap to pay payments where you can just receive contactless payment right on your compatible iPhone, you do not need to have an additional card reader.
• Keyed-in Payments: Information about the card of the customer can be fed with the help of the keyboard. When you make all payments and use the mobile app, the record of payment is automatically updated to your QuickBooks Online account.

Top Benefits of Using QuickBooks to Receive Customer Payments

Knowing how to receive payments in QuickBooks Online makes managing your finances much easier. Accepting customer payments through QuickBooks comes with several benefits:

• Better Cash Flow: Online timely deposits and the ease of making online payment will facilitate continued cash flow into your business.
• Reduced Manual Work: You do not have to spend your time in entering data into QuickBooks manually and reconciling because they automatically record online payments and match them with your invoices.
• Professional Invoicing: A highly configurable invoice based on template with online payment is only the slick professionalism your customers will get.
• Enhanced Security: QuickBooks Payments has security built in, which assists in safeguarding your business as well as the financial info of your customer.
• Accurate Financial Records: All your payments, deposits and records are centralized and therefore your financial reports are accurately reconciled.

QuickBooks Payment Problems: Common Issues Explained

While learning how to receive payments in QuickBooks Online, watch out for some common mistakes. Here are a few issues to keep in mind when accepting payments in QuickBooks:

• “Paid – Not Deposited” Status: It is a usual problem arising when payment received is not transferred in the QuickBooks account yet (either in the Undeposited Funds or to a bank account). To fix this, you have to make a bank deposit and choose which of the payments to incorporate.
• Payment Holds: As it was stated before, payments may be kept due to many reasons. Make sure that your account information is up-to-date and check QuickBooks alerts.
• “Pay Now” Link not Working: This is possible when the invoice settings are improperly set up or in case, the link was already used to make a partial payment.

How to Prevent Common Invoice and Payment Mistakes

• Personalize Your Invoices: Utilize branded, professional templates that have their payment terms, due dates, and payment methods to be accepted.
• Automate Everything: Make use of QuickBooks’ automatic reminders for payments and recurring invoices.
• Reconcile Regularly: Individually compare your bank and credit card statements regularly (weekly or monthly) to find out the possible discrepancies and be sure that all payments are made properly.
• Use the “Undeposited Funds” Account Wisely: In cases, where you have multiple checks or payments (i.e. multiple funds going into one bank deposit), you must use this account and then set up a single bank deposit transaction in QuickBooks that reflect what you deposited at the bank in actuality.
• Review and Verify: Customer details, invoices, and amounts have to always be repeatedly checked before being saved and send.

Conclusion

QuickBooks Online provides an excellent comprehensive feature in terms of control of your customer payments such as creation of invoices, monitoring of deposit. With the knowledge of its functionalities and features like online payments, mobile payments, and automated reminders, the business will be able to achieve their cash flow efficiency, eliminate manual errors and offer convenient and smooth customer experience. By adhering to the best practices of invoicing and reconciling, you will always have accurate and updated financial records, which is the gateway of having a healthier organization and a more efficient business.

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