Fit Small Business: Get Your Business Into Shape! › Forums › Ask a Question › I am the Treasurer for a non-profit, Gems of Hope Inc. Our accounting is on a › Reply To: I am the Treasurer for a non-profit, Gems of Hope Inc. Our accounting is on a
Hi Sue, thank you for your questions. QB does the accounting for you in the background based on the products and/service items that you have set up. When you set up a product/service item in QB, you assign an income account to that item; when you use that item on an invoice QB will debit accounts receivable and credit the income account that you have assigned to the item you have billed your customer for.
When an invoice is paid, the following accounts are impacted:
Credit Accounts receivable
If you are on a cash basis, then select “cash” basis for all of your reports.
You can also check the following QBO video tutorials:
How to create and send invoices: https://fitsmallbusiness.com/send-an-invoice-through-quickbooks/
How to set up the products/services list: https://fitsmallbusiness.com/set-up-products-and-services-list-quickbooks-online/
Thank you for reading!