How The Accounts Receivable works in QuickBooks?

Today, here we are going to discuss how the Accounts Receivable works in QuickBooks. There are 5 ways through which you can work and you can opt any one way to do so. The accounts receivable is used to maintain the money records in the business for goods and services. It is made for the amount that you have not received yet for the goods. You must use it to record the transaction for your future tax payments and for avoiding penalties.

Ways for Accounts Receivable works in QuickBooks

The ways are as follows:-

Workflow 1: Estimate – Sales Order – Invoice – Payment – Deposit

You can easily use this workflow if you want to send the proposal to the client. It will also change into sales order before creating any invoice and collect payments. The steps for this workflow are as follows-

  • Create an estimation for the products and services
  • Now you need to create a sales order
  • An invoice has to be created
  • Do record the payment
  • Then deposit customer payments

Workflow 2: Invoice – Payment – Deposit

If you don’t need to make sales order or also don’t need to send proposals then go for this workflow of accounts receivable. The steps for this are as follows:-

  • Firstly, do create an invoice
  • Now record a payment
  • At last deposit customer payments.

Workflow 3: Estimate – Invoice – Payment – Deposit

If you are creating or sending proposals in your business that you don’t want to turn into the sales then go with this workflow. For this, you need to follow the below steps-

  • First, create an estimate for the bill
  • According to estimate create an invoice
  • Then record a payment
  • Deposit customer payments

Workflow 4: Sales Order – Invoice – Payment Deposit

If you don’t have to send the proposals then you can choose this workflow. In this, you still have the Sales order to manage the sales of the products & services. Steps are as follows to use this workflow-

  • Create a sales order for the goods & services
  • Now create an invoice for that sales order
  • Then do record a payment for it
  • Deposit customer payments

Workflow 5: Statement Charges – Finance Charges – Statement – Payment – Deposit

This workflow is used if you have a monthly basis for customer billing. So, you need to directly enter the charges into the register of the customer instead of making separate invoices.

  • Create the Statement Charges
  • Now access the finance charges
  • Billing statement has to be created
  • Payment needs to be recorded
  • Deposit Customer Payments and finish.

Here are the ways that you get to know about all of it. Now you have to choose anyone according to your requirements. If you are still, facing any kind of issues or want to ask anything then you can easily reach us out at toll-free QuickBooks support number 1800-961-6588