Most of the changes are taking place in technology. Keeping this in mind, QuickBooks is introduced to us. It is a platform for the experts or people who exercises through accounting or banking-related stuff. It is a platform that offers you plenty of customizable options. Invoice and sales receipts may sound the same in the business world. But, QuickBooks makes a clear distinction between these two terms. In this article, we are going to cover up everything related to these two terms and showcase the differences.
What is a sales receipt?
You provide a sales receipt to your customer at the time when they make a purchase of goods or services from you while opting for QuickBooks services or when your customers pay you instantly in exchange for your product or service.
How to create a sales receipt?
At the time when you are entering a sale, you need to enter the payment information. To create a sales receipt, go through the steps:
- Choose “+New”.
- Click on “Sales Receipt.”
- Select the customer name.
- Input the information related to sales, and tap on “Save and close.”
What is an invoice?
When you opt for collecting funds from your clients or customers is known as an invoice. It is referred to a transaction that you make to receive money or fund from the customers of your business or organization. It is also a transaction that you provide to your customers who did not yet pay for the service or product they received successfully from you. It is also known as an individual sales transaction that can compromise a statement partially of your clients’ or customers’ accounts.
You need to make use of the Invoice and Receive Payment for a deferred payment. In other words, it is something like a two-part transaction. To record the sale, firstly, you need to create an invoice. And then, you need to close the invoice when your customer pays.
How to create an invoice?
To create an invoice, follow the below down steps:
- Click on “+ New”.
- Choose “Invoice.”
- Fill-up the field with the essential information
- Then click on “Save” or “Save and send.”
How to close an invoice?
Perform the below-given steps to close an invoice:
- Click on “+New.”
- Choose “Receive Payment.”
- Select a customer name, and choose the invoice(s) you want to close.
- Now, select a payment method and the account where you want the payment to get deposited.
- Finally, click on “Save and close.”
Difference between sales receipts and invoice in QuickBooks:
Some of the major differences between sales receipts and invoice in QuickBooks are given below:
Read more about: “QuickBooks Pay Stub Template”
Estimates:
To need to use an invoice for processing jobs that need purchase orders or written estimates. Additionally, any purchase order or estimate that is created by you for your customer is QuickBooks, can be automatically converted into an invoice, just by a single click. But, you cannot convert them into sales receipts. Also, you cannot convert a sales receipt into an invoice.
Process:
For tracking sales receipts, you need to go through a two-step process. First, you enter the sales information, and at the same time, the money collected from the sale is being deposited into an account. But invoices include a three-step process. Firstly, you prepare the invoice, receive payment, & then proceed with the deposit.
Payment methods:
As sales receipts only include one payment method, it makes it easy to track customer sales. But, there is a combination of methods in the case of invoices, and also includes checking cash or charge.
Usage in business:
Mostly the consultants, mail order firms, and contractors find invoices handy. But, on the other hand, sales receipts generally work better in situations when a payment takes place at the same time when products or services are rendered. For this reason, restaurants, newspaper stands, salons, and dry cleaners use sales receipts.
Payment terms:
One of the primary purposes of QuickBooks is to track account receivables. Invoices let you ti keep records of customers who do not make full payment or just pay you in advance. You can separate all these and report on them individually from the job list of the customer. When it comes to handling circumstances for which services or sales take place as a single transaction, sales receipts come to use.
Versatility:
Invoices are versatile tools in QuickBooks that allow users to group items and generate reports by several lines on products and services sold. Sales receipt simplifies the task of preparing tax reports daily, weekly, or monthly.
Conclusion:
Sales receipts and invoices have their advantages and disadvantages. What creates the difference is how you want to use it. QuickBooks is a nice platform for accounting experts and for the people who keep knowledge on the field. If you are a beginner, you are recommended to hire an expert to avoid any wrong steps.
