Concept Overview of Statements and Customer Charges in QuickBooks Online

Learn About Statements and Customer Charges in QuickBooks Online: Video

            This video lesson, titled “Learn about Statements and Customer Charges in QuickBooks Online,” provides a concept overview of sending statements for customer charges in QuickBooks Online. This video lesson is from our complete QuickBooks Online tutorial, titled “Mastering QuickBooks Online Made Easy.”

Overview:

What are Statements in QuickBooks Online and Why Would a Business Send a Specific Type of Statement to Customers?

            Statements in QuickBooks Online show customer transactions, based on the type of statement selected. Businesses that use statements to bill customers often enter these customer charges as the customer accrues them. Later, the company can then send the customers a billing statement that requests payment of those charges. These types of businesses may send a “Balance Forward” or “Open Item (Last 365 days)” type of statement.

            Alternatively, other businesses may simply want to show the history of customer transactions by sending a “Transaction Statement” type of statement, especially if no customer payment is required.

How Would a Company Enter Customer Charges if Using Billing Statements in QuickBooks Online?

            You can enter the charges that appear in customer statements using the sales forms or journal entry window. For businesses that charge customers using customer billing statements, the form you choose depends on whether the charges are recurring and whether they are automatically paid by the customer or if the customer must remit payment later.

            For recurring charges, it may be easier to create either a recurring invoice, recurring sales receipt, or a recurring journal entry. If the customer remits payment later, then you may want to use the invoice, or a journal entry made as a debit to the “Accounts Receivable” account and a credit to the associated income account. If you apply automatic late fees, then using the invoice or recurring invoice is best. Alternatively, for customers who have automatic payment or pre-payment, entering the charges in a sales receipt may work better.

Can My Company Send Transaction Statements (Non-Billing Statements) to Customers in QuickBooks Online?

            Of course, if your business sends statements just to remind customers of outstanding balances owed from your company’s normal sales and invoicing processes, then you simply record your sales and invoices, as usual, and then create the desired type of statements, as needed.