installment billing with quickbooks online qbo

QuickBooks Online (QBO) – Installment Billing

installment billing with quickbooks online qbo

I have a number of clients using QBO that have agreements or contracts where they offer their services over an extended period of time.  Even though the agreement might be for a year they don’t want to invoice and charge HST for the full year if they’re not being paid. This is where installment billing can be applied.

Who Benefits from Using Installment Billing?

Coaches, personal trainers and technical support services are an example of these types of businesses.  And one of their “selling features” is that they offer an affordable option to pay the total amount spread equally over a specified period of time. This is Installment billing and Installment payments, not to be confused with Progress billing.  Progress billing is generally associated with the construction industry with invoices generated for a percentage of work that is completed.  QBO does not currently offer the Progress invoicing feature.

Easily Setting Up Installment Billing in QuickBooks Online (QBO)

So how can you easily set-up Installment billings where you don’t have to remember to invoice your client monthly?  My suggestion is to do the following;

  1. Prepare your agreement or contract as an estimate. Estimates do not have an effect on your Sales or GST/HST accounts. Make sure to include the details of the equal monthly billings.  After you have the signed estimate in QBO, you can either leave it as is, or mark it rejected. Or you can prepare the proposal in your preferred software.  I personally like to keep everything in one place.
  2. Prepare the first equal billing invoice. At the bottom of the invoice, in the centre, is Make Recurring. This is a template and the default name will be your client’s name. Feel free to change the default name, which you would need to do if the same customer had additional recurring transactions.  Select “Scheduled along with Automatically Send Emails. Choose the other options that best suit your needs. i.e. start date of first invoice and last invoice date, or after so many occurrences. Then save the template.
  3. The invoices will now be automatically sent based on the invoice date you selected, or the number of days prior to the invoice date if chosen during the set-up.
  4. If you want QBO to automatically send you a copy of all sent invoices, go to Company Settings, Sales, Messages, then select Email Me a Copy
  5. Want to review your recurring transactions or make changes? Go to the Gear icon and under lists select Recurring Transactions. It is here that you can edit the body of the invoice, use, copy or delete.

Recurring transactions are only available in QuickBooks Essentials and QuickBooks Plus.

You have now established a process for ensuring your invoicing is sent on time, and no one is overlooked.  The amounts reported for GST/HST returns are based on actual and not future dollars.  Hopefully this will also help with your cash flow.

If you have another process you use with QBO and have questions about, I would like to hear from you, and possibly share with my readers.

You can connect with me by clicking the contact tab at the bottom of the screen if you are reading this post on the website. Or you can leave your information in the form of a comment right here on the site.

Until next time,

Maureen

QuickBooks Online (QBO) Shortcuts and Learning

QBO Learning BadgeQuickBooks Online (QBO) is accounting software accessible by being completely online!  It eliminates the need to have a centralized “accounting computer” and enables users to access it from anywhere they have internet access, at any time.

Shortcuts to Streamline QBO

Part of the enjoyment of learning QBO is also learning about the shortcuts to increase efficiency.  I’ve spoken to a number of QBO users and they weren’t aware there were these shortcuts.  So I thought it would be a great idea to share them with you.

To use any of the following shortcuts simply press CTRL + ALT +  “ “ the key below:

QBO Shortcuts

I seldom use the following shortcuts but they can be very handy for some users. These are date shortcuts that you can use by placing your cursor in a date field in QBO:

  • T – enters today’s date
  • W – enters the first day in the week
  • K – enters the last day in the week
  • Y – enters the first day in the year
  • R – enters the last day in the year
  • M – enters the first day in the month
  • H – enters the last day in the month

QBO Learning Options

You might be wondering what your QBO learning options are? QuickBooks offers some great videos that can help you at various stages. And of course there is YouTube, along with generic type classroom environments.

QBO One-on-One Learning

What we offer at The Montana Group is one-on- one personalized training.

Usually the customer comes in with their documentation, or access to documentation through such ports as Google Drive or DropBox.

Together we develop an agenda of what we want to accomplish in the two hour session, then get started.  This alone creates the benefits of learning, getting work done and having a reference of what was learned.

Here are a few aspects that make learning with The Montana Group unique:

1. We work together in a clean, comfortable and private boardroom, centrally located in Newmarket.

2. We use a large internet connected monitor so visuals are bright and clear. No leaning in to try and share a laptop monitor, or sitting side by side at a desk.

3. Everything we say and do is being recorded. The end result is a 2 hour video that will be emailed to you within 2 hours of the completed session.

No more writing numerous notes, while trying to learn! Then hoping you can read and understand those notes once you get back to work. And the video helps you share the experience with staff and partners, creating a greater learning reach.

4. If learning is required from a distance, or ongoing learning is required in shorter time frames, we can work together virtually. No need to leave the comfort of your office or home.  With a shared screen and everything being recorded you have the benefits of learning, accomplishing work and having a video reference of HOW TOs and WHYS.

Montana Group Boardroom QBO LearningEmbrace technology and the possibilities are endless!

So if you’re new to QBO and need to start from the beginning, or need help with what you’ve done or need to do – contact me.  I would be happy to meet with you in person or have a telephone call or virtual meeting to determine if we can help you with your needs and create your successes.

You can connect with me by clicking the contact tab at the bottom of the screen if you are reading this post on the website. Or you can leave your information in the form of a comment right here on the site.

Until next time,

Maureen