Recording income for a business can be accomplished in a variety of ways. There are three primary ways to record income in QuickBooks Online. First, a sales receipt is used when you receive payment at the same time you provide products and/or services to your customers. Second, you can use a deposit to record income for a specific customer or to record income from multiple customers at any one time. Third, you can use a sales invoice, which allows you to bill a specific customer, who will pay you based on payment terms that are agreed upon upfront.
In the following sections, we will cover when and how to record income using a sales receipt, a deposit, and a sales invoice. We will also show you the accounting that takes place behind the scenes for each transaction. This will include the debits and credits recorded for each transaction.
