If your business provides ongoing services, memberships, or subscription-based offerings, setting up recurring transactions in QuickBooks Online can help you save time, reduce missed invoices, and ensure predictable cash flow. This post will walk you through how to set up and manage recurring invoices or sales receipts for customers, as well as best practices to follow.
What Are Recurring Transactions?
Recurring transactions are templates you set up once and schedule to be created automatically at regular intervals. You can use them for invoices, sales receipts, expenses, and more—but for customer payments, we’ll focus on invoices and sales receipts.
When to Use Recurring Invoices vs. Sales Receipts
• Use **Recurring Invoices** when you need to send a bill to the customer and wait for payment.
• Use **Recurring Sales Receipts** when you charge the customer automatically (e.g., via credit card or ACH) and receive the payment upfront.
How to Create a Recurring Template
• Click the gear icon (⚙️) in the upper right and select ‘Recurring transactions.’
• Click ‘New’ and choose the type: Invoice or Sales Receipt.
• Set the Template name, Type (Scheduled, Unscheduled, Reminder), and Interval (e.g., monthly, weekly).
• Choose the customer and set start and end dates.
• Enter the product/service, quantity, rate, and other details.
• Check ‘Automatically send emails’ if you want the document emailed on schedule.
• Click ‘Save template.’
Managing and Editing Recurring Transactions
You can view, pause, or edit any recurring template by going to the gear icon > Recurring Transactions. From here, you can change the frequency, update the customer details, or delete the template if no longer needed.
Best Practices for Recurring Customer Payments
• Review your templates periodically to ensure prices and terms are current.
• Use meaningful names for templates so they’re easy to identify.
• Combine recurring invoices with automated payment reminders to reduce late payments.
• For recurring Sales Receipts, ensure you have customer authorization and proper payment method stored.
Conclusion
Recurring transactions streamline your billing process and help stabilize cash flow for businesses with regular, repeat customers. By setting them up thoughtfully and managing them well, you reduce administrative overhead and ensure no invoices are missed.
Please Note:
• QuickBooks Online has different versions (e.g., Simple Start, Essentials, Plus, Accountant). Some features or menu labels may vary slightly depending on your subscription level.
• QuickBooks Online is regularly updated by Intuit. Features, menu labels, and workflows described in this post may change over time. Always refer to the latest guidance within your QuickBooks account or consult a professional for current information.
If you require additional assistance with QuickBooks, please feel free to contact us.