QuickBooks Online (QBO) is a powerful cloud-based accounting solution that helps businesses manage finances efficiently, including invoicing and payment processing. One of the most important features of QuickBooks Online is the ability to receive customer payments quickly and securely. If you’re wondering how you can receive payments in QuickBooks Online, this detailed guide explains every available method, setup steps, and best practices to ensure smooth cash flow.
Why Receiving Payments in QuickBooks Online Is Important
Receiving payments accurately in QuickBooks Online helps you:
- Maintain real-time cash flow tracking
- Automatically update accounts receivable
- Reduce manual data entry errors
- Speed up payment collection
- Improve customer experience
When payments are recorded properly, your financial reports remain accurate and reliable.
Payment Methods Available in QuickBooks Online
QuickBooks Online allows businesses to receive payments through multiple methods, including:
- Bank transfers (ACH)
- Credit and debit cards
- Cash
- Checks
- Online payments through QuickBooks Payments
- Third-party payment apps
Each method can be configured based on your business needs.
Method 1: Receive Payments Using QuickBooks Payments
QuickBooks Payments is Intuit’s built-in payment processing service that allows customers to pay online.
Steps to Set Up QuickBooks Payments
- Sign in to QuickBooks Online
- Go to Settings
> Payments - Click Set up QuickBooks Payments
- Enter business and bank information
- Verify your identity
Once activated, customers can pay directly from invoices.
Payment Types Supported
- Credit and debit cards
- ACH bank transfers
Payments are automatically recorded in QuickBooks Online.
Method 2: Receive Payments from Invoices
Invoicing is the most common way to receive payments in QuickBooks Online.
Steps to Receive Payments via Invoice
- Go to Sales > Invoices
- Create or open an existing invoice
- Enable Online Payments
- Send the invoice to your customer
Customers can pay using cards or bank transfers. Payments are applied automatically to the invoice.
Method 3: Record Cash Payments
Cash payments can be recorded manually in QuickBooks Online.
Steps to Record Cash Payments
- Go to + New > Receive payment
- Select the customer
- Choose the invoice
- Select Cash as the payment method
- Enter the amount and save
This ensures your records stay accurate even for offline payments.
Method 4: Receive Check Payments
If customers pay by check, QuickBooks Online allows easy recording.
Steps to Record Check Payments
- Click + New > Receive payment
- Select the customer and invoice
- Choose Check as the payment method
- Enter check number and amount
- Deposit the check later using Bank Deposit
Method 5: Use Bank Transfers (ACH)
ACH payments are a cost-effective way to receive payments.
How to Enable ACH Payments
- Activate ACH in QuickBooks Payments
- Allow bank transfers on invoices
ACH payments usually take 1–3 business days to process and are automatically matched in QuickBooks.
Method 6: Receive Payments Without an Invoice
You can receive payments even if no invoice exists.
Steps to Receive Payments Without an Invoice
- Go to + New > Receive payment
- Select the customer
- Leave invoice section blank
- Enter payment details
- Save and close
These payments are recorded as credits and can be applied later.
Method 7: Receive Payments Using Mobile App
QuickBooks Online mobile app allows you to receive payments on the go.
Mobile Payment Features
- Send invoices instantly
- Accept card payments
- Record cash and check payments
- Track payment status in real time
This is ideal for businesses that operate remotely or in the field.
Method 8: Third-Party Payment Integrations
QuickBooks Online integrates with popular payment platforms such as:
- PayPal
- Square
- Stripe
These integrations sync payment data automatically, reducing manual work.
How Payments Are Deposited in QuickBooks Online
Once payments are received:
- Funds are deposited into your linked bank account
- Transactions appear in the Undeposited Funds account
- You can group payments and record bank deposits
This process ensures accurate bank reconciliation.
Handling Partial Payments and Overpayments
Partial Payments
QuickBooks Online allows customers to make partial payments. The remaining balance stays open until fully paid.
Overpayments
Overpayments are recorded as customer credits and can be applied to future invoices.
Best Practices for Receiving Payments in QuickBooks Online
To improve payment efficiency:
- Enable multiple payment options
- Use automatic payment reminders
- Reconcile payments regularly
- Monitor outstanding invoices
- Keep payment settings updated
These practices help reduce delays and improve cash flow.
Common Issues While Receiving Payments and Solutions
Payment Not Showing
- Check Undeposited Funds
- Refresh bank feed
Payment Failed
- Verify customer payment details
- Check QuickBooks Payments status
Duplicate Payments
- Review transaction history
- Void or refund duplicates
Conclusion
Understanding how you can receive payments in QuickBooks Online is essential for maintaining steady cash flow and accurate financial records. Whether you receive payments through invoices, online methods, cash, checks, or third-party integrations, QuickBooks Online offers flexible and secure options for every business. By setting up payment methods correctly and following best practices, you can streamline your payment process and focus more on growing your business.