If your business collects payment at the time of sale—whether in-person, online, or through a connected app—Sales Receipts in QuickBooks Online are the best way to record that transaction. Unlike invoices, which are used when payment is due later, Sales Receipts are used when payment is received right away. This post walks you through when and how to use Sales Receipts and how to streamline the process with connected apps.
When to Use a Sales Receipt
Sales Receipts are ideal for transactions where payment is received on the spot. This includes retail sales, service calls paid on-site, and online transactions. Using a Sales Receipt ensures your sales and deposits are accurately recorded without needing a separate ‘Receive Payment’ step.
How to Create a Sales Receipt
• Click ‘+ New’ from the left menu.
• Select ‘Sales Receipt.’
• Choose the Customer or add a new one.
• Fill in the Payment Method (e.g., cash, credit card) and Deposit To account.
• Add the Product/Service, quantity, and rate.
• Review the total and sales tax (if applicable).
• Click ‘Save and send’ or ‘Save and close.’
Connected Apps That Create Sales Receipts Automatically
If you use apps like Square, PayPal, or Stripe (via third-party integrations such as Synder or Acodei), Sales Receipts can be created automatically in QuickBooks Online when a sale is made. This saves time and ensures consistency in how your income is recorded.
Be sure to check how each app maps data into QuickBooks Online. Some apps allow you to customize income account mapping, customer names, and product/service fields.
Best Practices
• Always use Sales Receipts for same-day payments instead of invoices to avoid duplicate income.
• Make sure the ‘Deposit To’ account reflects where the money was actually received (e.g., checking account, undeposited funds).
• Set up and use the Products and Services list correctly to ensure clean categorization (see our earlier blog post on this topic).
• Review automatically generated Sales Receipts from apps to ensure accuracy.
• Carefully review the sales tax applied by apps like Square or PayPal. Some apps apply default tax settings that may not match your local tax rules or exemptions. Always reconcile the tax amounts recorded in QuickBooks with your actual tax liabilities.
Conclusion
Sales Receipts are essential for businesses that receive payment at the point of sale. When used correctly, they help simplify your bookkeeping and give you a clear picture of your daily income. Combined with connected apps and proper setup of your items, they make recording sales fast, easy, and reliable.
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.