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How much does CRM cost – CRM pricing comparison guide

How much does CRM cost? Keep reading to find out how different CRMs are priced and how to pick the right option for your budget.

How much does CRM cost – CRM pricing comparison guide Read More »

Ever wondered, ‘How much does CRM cost?’ You’re not alone. In the quest to enhance customer relationships and boost sales efficiency, businesses of all sizes turn to Customer Relationship Management (CRM) systems. 

But with varying features, features and functionalities, the cost of CRM solutions is diverse. This guide breaks down different CRM pricing, revealing the factors that influence cost. Whether you’re a small business or a multinational corporation, understanding CRM costs is crucial for making an investment that aligns with your goals and budget.

What is a CRM?

Before answering the question “How much does CRM cost?” it’s important to define what a CRM is. A CRM (customer relationship management) system is a tool that helps you manage, analyze, and improve your interactions with: 

  • Leads. 
  • New customers. 
  • Loyal clients. 

By consolidating customer information and documenting interactions, a CRM system simplifies sales, marketing, and customer service efforts to make it an essential component for modern business operations.

How much does CRM cost?

A common question among business owners is “How much does CRM cost?” The answer is it depends. CRM costs vary significantly based on several factors, including:

  • Features.
  • Functionality.
  • Deployment.

From subscription models to licensing models, the pricing of CRM solutions is diverse. It caters to a wide range of budgets and business sizes. One-time vs. recurring fees also play a crucial role in determining your overall cost.

Why use a CRM?

Using a CRM saves companies money in the long run by helping you: 

  • Enhance customer relationships.
  • Improve sales efficiency.
  • Provide valuable insights through analytics and dashboards. 

It’s a strategic investment that helps you better understand and serve your customers. Despite the upfront costs, CRMs offer a clear return on investment (ROI) over time.

CRM pricing plans for different needs

Team size and usage volume

A CRM provider often calculates costs based on active users. Plans range from basic options for small teams of people to comprehensive enterprise solutions for larger organizations. Bigger companies typically require a higher number of features and a large number of contacts. 

Note that some providers choose a pricing model that affords small businesses a discounted rate, so keep an eye out for deals like that.

Basic functionality vs. advanced features

CRM systems offer a range of features, from basic contact management to advanced AI and analytics. A CRM provider typically increases its cost with added functionalities and values its premium features at a higher rate. For example, a typical CRM provider includes certain features in the base price and excludes advanced analytics from the basic plan. 

Some companies provide personalized quotes that factor in everything from customization costs to mobile access charges. A quote also assesses additional fees for premium support. This way, the CRM company effectively negotiates pricing for large enterprises to account for the money it spends on R&D to enhance features and more. After all, covering overhead costs is the only way to stay profitable.

Wide range of plans with varying price points

CRM solutions like Salesforce, HubSpot, Freshsales, SugarCRM, and Microsoft Dynamics offer a variety of plans, each with different price points and features, to ensure there’s an option for every business need. They generally follow a subscription plan model, which either costs a specific amount monthly or charges annually based on features.

It’s also common that a CRM includes custom plans for on-premise vs. cloud-based pricing. Finally, you may come across a company that quotes different prices for different regions. Make sure to look into every factor when making your decision.

Hidden costs and additional fees to watch out for

It’s common for companies to make a budget for their CRM expenses that excludes additional fees. However, it’s important to be aware of all the hidden costs, such as:

  • Storage costs.
  • Customization costs.
  • Data migration fees. 

Before choosing a CRM, you may want to check whether it requires additional fees for extra integrations, as these significantly impact your overall budget.

Some CRMs also offer a free trial, but watch out for the end of the trial date, as you may incur an unexpected charge. Not to mention, there may be cancellation fees if you try a software and decide not to continue using it.

Lastly, you may come across a CRM that updates its pricing model periodically or evaluates its pricing annually. If the charges are unreasonable, then it’s worth informing the company, as it’s common that a provider sets its price based on customer feedback. Make sure you look at the most up-to-date pricing information when making your decision.

Software costs vs. other expenses associated with using a CRM

So, how much does CRM cost when factoring in additional expenses? Apart from the software cost, you should also consider:

  • Training and support fees.
  • Setup and implementation costs.
  • Ongoing maintenance expenses.

Average cost of a CRM plan per user per month

The average cost of a CRM plan per user per month ranges based on the complexity and scope of the solution.

Basic plans start as low as $10 per user (or even free), while some systems with extensive features exceed $100 per user. It’s important to consider both the immediate and long-term financial implications of the plan you choose to ensure it aligns with your budget and business growth plans.

What other costs will you pay when implementing a CRM?

CRM training

Ensure that your company allocates funds for training and onboarding so your team can effectively use the CRM. This cost varies depending on the size of the company and complexity of the system.

Overall, quality training reduces the risk of implementation failure and enhances efficiency. So, it’s essential to maximize the return on your CRM investment.

CRM data migration

You incur data migration fees when transferring existing customer data into a new CRM software. This process can be complex depending on the volume and format of the existing data. So, make sure you account for this expense when asking how much does CRM cost for your business. 

Consider the costs for technical expertise and the tools you’ll need to ensure a smooth and secure transfer of sensitive customer information.

CRM configuration and set-up costs

Initial setup and configuration costs are significant, especially for complex systems that need extensive customization. These costs cover the initial implementation, including:

  • System configuration to match your business processes.
  • User setup and permissions.
  • Integrating your CRM with your existing infrastructure.

CRM add-ons

Add-on modules enhance the functionality of your CRM, but come at an additional cost. Some examples include:

  • Advanced analytics.
  • Marketing automation tools.
  • Enhanced customer service features. 

Carefully assess which add-ons you need to avoid unnecessary expenses.

CRM customizations

Customization costs are associated with tailoring your CRM to meet specific business needs. This might involve:

  • Developing unique features.
  • Modifying existing functionalities.
  • Designing and automating workflows.

As always, remember that customizations increase your CRM’s effectiveness, but also add to your overall cost.

CRM integrations

If your company invests in other tools to supplement your system, third-party app integration charges may apply. So, when connecting the CRM with other software products or systems within your business, make sure you stay within your budget.

These integrations are essential for creating a cohesive technological ecosystem, but they often involve additional costs for:

  • Development.
  • Testing.
  • Maintenance.

What factors impact CRM costs

The cost of a CRM system often varies depending on the types of features required and the compatibility with existing software. 

Existing software and required CRM features

If your current systems require extensive modification to work with the new CRM, or if you need advanced features like AI-based analytics, the price will be higher. 

It’s crucial to conduct a thorough analysis of your current technology stack and identify the must-have features to ensure you choose a CRM that aligns with both your technical requirements and budget.

Number of users

User-based pricing means the prices vary based on user count and the cost increases with the number of users accessing the system. This pricing model is common in CRM solutions, making it crucial to accurately assess how many of your team members will need access to the system.

Consider your current staff size and potential future growth, as expanding your user base later can increase costs.

CRM integrations and customizations

Integrations and customizations can significantly increase the overall cost of a CRM solution. The more you need your CRM to integrate with other tools (like email marketing software or customer support platforms), the higher the cost may be. 

Similarly, customizations that tailor the CRM to your unique requirements can add to the expense. It’s important to weigh the benefits of these customizations and integrations against their cost to ensure they contribute to a tangible ROI.

How to choose the right CRM

Define your CRM requirements

Understanding your business needs and customer management requirements is the first step in selecting the right CRM. For example, is your focus on generating leads? Or do you need a powerful mobile app for access on the go? It’s important to drill down your exact requirements so that you get the best value for your money.

Consider things like:

  • Your team’s size.
  • The scale of your customer base.
  • The complexity of your sales processes.

Considering these factors is the first step in figuring out how much does CRM cost. 

Make a list of essential features you will need

Next, identify and make lists of the tools and functions that your business requires, such as contact management, automation, analytics and reliable customer support.

Don’t forget to factor in scalability, integration capabilities with existing systems, and the ease of adding new features or modules in the future. This step ensures that the CRM can grow and adapt with your business.

Consider hidden costs

Ever wondered how much does CRM cost when you take hidden costs into account? Make sure to think about potential costs like integration fees and customization costs when choosing a CRM.

Other areas include additional licenses, data migration, and any other unforeseen expenses that could arise. Being aware of these costs upfront can help prevent budget overruns.

Factor in support and maintenance costs

It’s essential that your CRM budgets for regular updates and support. These maintenance costs are vital for the long-term success of your CRM deployment. Ensure that the vendor offers comprehensive support and maintenance plans that cover:

  • Software updates.
  • Technical support.
  • Security enhancements.

Try demos and free trials

Some CRM providers offer a risk-free way to evaluate a CRM’s usability and functionality. This lets you:

  • Test the software in real-world scenarios.
  • Understand how it integrates with your existing workflows.
  • Identify any potential issues or limitations before making a purchase decision.

Prioritize user experience

A CRM with an intuitive user interface ensures higher adoption rates and user satisfaction. So look for one that offers a user-friendly design, easy navigation, and customizable dashboards. A positive user experience also ensures you don’t need to invest in extensive training.

CRM pricing comparison guide

This section of the blog compares and evaluates the top CRM options. Here you’ll be able to answer the question “how much does CRM cost” when it comes to specific software.   

Method CRM pricing

Method CRM offers three subscription plans:

  • Contact Management: $25 per user per month.
  • CRM Pro: $44 per user per month.
  • CRM Enterprise: $74 per user per month.

Each plan offers varying functionalities and capabilities, depending on the stage your business is in and its unique needs. Method also offers a free trial with no credit card required. 

Salesforce pricing

Image credit: Salesforce

Salesforce determines its price based on market demand, which reflects their position as a high-value provider. 

It’s available in three different plans:

  • Essentials: $25 per user per month. 
  • Professional: $80 per user per month.
  • Lightning Enterprise: $165 per user per month.

Pipedrive pricing

Pipedrive screenshot

Image credit: Pipedrive

Pipedrive offers a range of pricing plans that all emphasize sales-focused features, but have varying levels of functionality. Pipedrive has five pricing plans available:

  • Essential: $14.90 per user per month.
  • Advanced: $24.90 per user per month.
  • Professional: $49.90 per user per month.
  • Power: $64.00 per user per month.

Enterprise: $99.00 per user per month.

Nutshell pricing

Image credit: Nutshell

Nutshell also compares favorably with other CRM solutions and lists its pricing transparently on its website. Its pricing structure caters to businesses seeking advanced features, with each plan designed to meet diverse business needs and scalability requirements.

Here are its pricing plans:

  • Foundation: $19 per user per month.
  • Pro: $49 per user per month.
  • Power AI: $59 per user per month.
  • Enterprise: $79 per user per month.

HubSpot CRM pricing

HubSpot product shot

Image credit: HubSpot

HubSpot determines your cost based on individual bundles or “hubs” you purchase. This depends on how many business tools you need. Remember to ask, “How much does CRM cost, including the add-on modules cost?” before you invest, as the final cost quickly adds up.

HubSpot’s Starter plan begins at $20 per month, but its Professional plan jumps to $1600 per month. If you’re looking for an Enterprise plan, costs start at $5,000 a month.

Individual hubs include:

  • CRM.
  • Sales.
  • Marketing.

Note that HubSpot CRM is recognized for its versatility and discounts its services for non-profits. This discount lets non-profits leverage advanced CRM tools for better stakeholder engagement and operational efficiency, which is often challenging with limited budgets.

Wrap-up

In conclusion, navigating CRM pricing can be daunting, but understanding the nuances is key to making an informed decision. While options like Salesforce, Pipedrive, Nutshell, and HubSpot cater to various needs and budgets, Method stands out as a compelling choice. Its flexible subscription plans, ranging from essential contact management to comprehensive enterprise solutions, are designed to grow with your business. Coupled with its user-friendly interface and customizable features, Method offers a perfect blend of functionality and affordability. 

Frequently Asked Questions

How much should I budget for CRM?

CRM pricing ranges from basic to enterprise pricing and varies widely depending on other factors. So, there is not one answer to, “How much does CRM cost?” 

You want your budgeting estimates to be within a certain range that assesses: 

  • Software costs.
  • Additional fees.
  • Ongoing expenses like support and updates. 

Also, look for potential CRM deals or discounts. It’s not unusual that a company decreases its price during promotional periods, so you’ll want to watch out for that as well.

Is CRM free to use?

You may come across a CRM provider that offers free web versions with limited features, which is suitable for small businesses or those just starting with CRM. You may also come across a company that offers discounts for longer commitments. 

However, note that with CRM software, you get what you pay for. The best solutions come with a cost, but save you time and money in the long run.

How much do companies spend on CRM?

How much a company allocates to CRM depends on various factors. When asking, “How much does CRM cost a company?” it’s important to consider aspects like:

  • Company size.
  • Needs.
  • Values. 
  • The solution’s complexity.

Ready to find your confidence in the chaos? Start your free trial with Method.

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Does Google have a free CRM? Best CRMs for Google users

Does Google have a free CRM? In this blog, find out and learn about the best CRMs for small businesses in the market.

Does Google have a free CRM? Best CRMs for Google users Read More »

As a small business, you know the importance of every dollar. You’re likely using free Google Workspace tools like Gmail and Google Sheets to kickstart your business without breaking the bank. 

But as your business expands, you must nurture customer relationships for loyalty and growth. Since you’re already familiar with Google Workspace, you may wonder: Does Google have a free CRM? 

In this blog, you’ll find out if Google provides a free CRM and look at the best CRMs for Google users. 

Let’s get started! 

What is a CRM?

CRM, or customer relationship management, is a software system that helps you: 

  • Track customer interactions. 
  • Create invoices, quotes, and mailing lists. 
  • Manage sales, marketing, and customer service. 

CRM software is all about nurturing customer relationships using the data you have at your fingertips. 

Does Google have a free CRM?

Now that we’re up to speed about CRMs, let’s answer: “Does Google have a free CRM?”

The answer is no — Google is not a company that develops its own CRM software. However, a number of small businesses use Google Workspace tools like Gmail, Contacts, and Calendar as a basic CRM. But managing customer relationships this way is not sustainable, especially for a growing business.

Fortunately, there are many third-party CRMs that offer Google Workspace (formerly G Suite) compatibility, and some providers even offer free vs. paid versions. These CRMs enhance Google’s tools to give you the best of both worlds.

Best CRMs for Google users

Now that we know the answer to, “Does Google have a free CRM?” let’s check out the best CRMs for Google users. 

Method CRM — #1 CRM for QuickBooks and Xero users

Through its powerful, two-way sync, Method introduces a new CRM platform for users of QuickBooks or Xero. It automates tasks within its CRM and lets you tailor it to your needs with customizable dashboards. 

Method also provides strong customer support and the team consistently values user feedback for CRM improvements.

As a cloud-based platform, Method offers third-party app integrations with Google Workspace so you can:

  • Invite contacts and track opportunities from your inbox. 
  • Sync Google Calendar with Method for better planning.
  • Import Google Sheets data directly into the software. 

Use a CRM that works the way you do.

HubSpot CRM

Screenshot of HubSpot dashboard.

Image credit: HubSpot

HubSpot CRM offers a comprehensive CRM solution that manages customer relationships through its platform. It integrates seamlessly with other business tools like Google Workspace so you can: 

  • Track emails. 
  • Manage documents. 
  • Synchronize calendars. 
  • Consolidate contacts and leads. 

Plus, HubSpot grants access to CRM analytics, which offer deep insights into your customer interactions.

Pipedrive

Pipedrive screenshot

Image credit: Pipedrive

Pipedrive provides CRM services to businesses of a smaller scale, specifically entrepreneurs and small-to-midsize companies. With a user-friendly interface, Pipedrive promotes the use of its CRM for sales teams in all sorts of industries.

Pipedrive’s integration with Google Workspace: 

  • Categorizes contacts and leads systematically.
  • Schedules reminders and follow-ups for users.
  • Monitors user interactions for better insights.

While Pipedrive is budget-friendly, its scalability for growing businesses is limited.

Zoho CRM

Screenshot of Zoho CRM dashboard.

Image credit: Discover CRM

Zoho features a CRM in its suite of tools called Zoho CRM. It updates its CRM with new features regularly. 

This solution supports businesses with CRM tools that help boost sales and marketing processes. 

Plus, Zoho CRM integrates with Google apps like Gmail, Google Calendar, and Google Drive. This integration: 

  • Tracks customer interactions efficiently. 
  • Organizes customer data in a user-friendly manner. 
  • Stores vast amounts of customer data securely. 

As a bonus, Zoho often discounts its CRM services during promotions and gifts premium CRM features occasionally. This ensures that businesses have the necessary resources to manage all cases and files.

Features of a Google CRM

Now that you’ve answered, “Does Google have a free CRM?” let’s dive into the exciting features you can expect from a Google CRM.  

Native integrations

Top-notch CRMs thrive on seamless native compatibility. This includes integration with the full suite of Google services, such as Google Sheets compatibility.

Additionally, Google CRMs prioritize mobile app integration. This ensures flexibility and accessibility on the go. 

Reporting

Every successful company knows the importance of analytics and reporting. 

Google-integrated CRMs offer features like data import/export and list creation, which enable real-time report generation. These functionalities turn data into actionable insights to drive strategic planning.

Additionally, some CRMs integrate with Google Looker Studio for data visualization.

Email marketing

Emails are the cornerstone of effective customer interaction. 

A top-tier Google CRM includes: 

  • Email templates. 
  • Email tracking. 
  • Marketing automation capabilities. 

Sales automation

Sales automation stands out as a key component of Google CRMs.

This functionality empowers businesses to:

  • Monitor the sales pipeline. 
  • Eliminate menial tasks.
  • Facilitate calendar syncing. 
  • Manage product tracking. 

Sales automation ensures that your sales force stays on top of every opportunity to drive deals. It gives your team more time and resources to spend on value-adding activities.

Pipeline management

Pipeline management is key in a CRM. This involves several operational pipelines, such as: 

  • Sales. 
  • Customer service. 
  • Marketing. 
  • Project management. 

Pipeline management optimizes efficiency and ensures that no opportunity slips through the cracks.

Contact management

Google CRMs offer a more advanced approach to managing contacts like leads and clients than standard tools. These systems consolidate contact information to provide a detailed view of each customer.

Interaction management

For meaningful customer engagement, interaction management is essential. 

Most CRMs help this with features that track all communications between sales reps and customers. 

Also, by improving task management, a good CRM ensures that you personalize every interaction. 

Employee management

An ideal CRM enhances employee management with key features, like:

  • Task, meeting, and goal tracking: Enables team members to keep track of their responsibilities and objectives.
  • Collaboration tools: Facilitates participation through integrated tools for comments, notes, and collaboration.
  • Task management and scheduling: Lets project leads schedule team members and assign them to tasks for optimal efficiency.

For managers, a Google CRM provides a complete overview of team performance and milestones.

Lead management

When it comes to lead generation, a top-tier CRM: 

  • Helps you identify prospects. 
  • Manages contacts and customers. 
  • Nurtures leads with detailed information. 

Beyond Gmail, effective Google CRMs capture leads from websites and social media platforms like LinkedIn. 

Security

Security and privacy features are essential in a CRM, especially when integrated with Google. A quality CRM should enhance Google Drive storage and ensure secure access for team members. For example, look for a CRM with user permissions and access controls.

Benefits of a Google CRM

When exploring the question, “Does Google have a free CRM?” it’s key to understand the benefits of a CRM for Google:  

  • Better organization: Organize all your customer data for accurate, up-to-date records.
  • Improved loyalty and relationships: Deepen customer connections and align your teams for effective engagement. 
  • Insightful analytics: Leverage Google analytics for actionable, data-driven insights. 
  • Task automation: Simplify your workflow and boost team morale by automating repetitive tasks.
  • Customization: Tailor your CRM to fit your business needs for a personalized solution.
  • Security: Protect confidential information like customer finances and prevent cyberattacks.

Get time back to focus on growth with Method.

What to consider when choosing a CRM for Google

When choosing a CRM for Google, here are some things to consider: 

  • Integration with Google Workspace: Ensure the CRM offers seamless integration with key tools like Gmail and Calendar. 
  • User experience: Choose a CRM with an intuitive interface that feels like an extension of familiar Google tools. 
  • Scalability: Select a CRM that evolves with your business and adapts to new tasks. 
  • Sales automation and reporting: Opt for a CRM with strong sales automation and reporting capabilities to leverage Google data effectively.
  • Support: Look into the support options available, such as help desks, Intercom, or Help Scout. Quality customer service can mean the difference between successful adoption and abandonment.
  • Pricing: Balance features with affordability to provide value without straining your budget.

In assessing cost-effectiveness, sometimes a CRM: 

  • Costs nothing for its basic CRM version.
  • Prices its advanced CRM features competitively.
  • Waives fees for startups using its CRM.

Additionally, reading reviews from other users offers invaluable insights. They provide real-world examples of how the CRM performs in various places. 

So, while the answer to “Does Google have a free CRM?” is no, that doesn’t mean you’re without options. What’s next is to determine which CRM features align best with your business needs.

Frequently asked questions (FAQs)

Does Gmail offer a CRM?

Gmail does not offer a CRM system, but it’s designed to work seamlessly with various third-party applications. This integration is key as it launches CRM functionalities for its users.

If you’re wondering, “Does Google have a free CRM through any of its other apps?” the answer is unfortunately not.

What CRM connects to Gmail?

A variety of CRM platforms integrate with Gmail. In this blog, you’ve looked at:

  • Method CRM.
  • HubSpot CRM.
  • Pipedrive.
  • Zoho CRM.

Other CRM solutions that connect to Gmail include: 

  • Agile CRM.
  • Bitrix24.
  • EspoCRM.
  • Freshworks.
  • OroCRM.
  • SugarCRM.
  • vTiger CRM.
  • Zurmo.

How do I use Google Mail as a CRM?

To transform Google Mail into a CRM, you can take advantage of add-on tools like Method:Sidebar or Streak. 

These tools integrate CRM functions like sales and project management directly into your Gmail interface. This means you can manage customer relationships without having to leave your inbox.

How do I create a simple CRM in Google Sheets?

While it’s not recommended, you can create a simple, makeshift CRM by setting up a spreadsheet with columns for: 

  • Contact details.
  • Interaction logs.
  • Sales pipeline stages. 

Then, you can use the platform’s various functions and formulas to manage your data. 

Can we use Google Workspace applications as a CRM?

Although you’ve addressed, “Does Google have a free CRM?” it’s worth noting that a lot of people still use Google Workspace as a CRM. 

For example, you can combine Google Contacts, Calendars, Sheets, and Gmail to: 

  • Manage contacts.
  • Schedule follow-ups.
  • Track interactions.
  • Store customer information.

For enhanced CRM capabilities, consider integrating a third-party CRM system with Google.

Optimize your Google Workspace with a robust CRM. Start your free trial of Method. 

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Can QuickBooks replace an accountant? All you need to know

Can QuickBooks replace an accountant? Is an accountant a must for financial operations? Find out in this blog.

Can QuickBooks replace an accountant? All you need to know Read More »

Keeping your finances in order is crucial for any business, but figuring out how to do it takes work. Relying entirely on an accountant might make your life easier, but it will also be tough on your budget. 

Alternatively, an accounting system like QuickBooks can support your financial operations for a fraction of the price, but to what extent can QuickBooks replace an accountant?

In this blog, you’ll explore when you need an accountant and when you can let your accounting software take over. The right software system can render you the services you need and might even be the better option, as it:

  • Provides features that rival professional accounting services.
  • Streamlines financial processes without human intervention.
  • Can be a cost-effective alternative to hiring an accountant.
  • Offers a comprehensive solution for small business financial management.
  • Can handle financial data and analysis like an expert.

So… can QuickBooks replace an accountant entirely? Let’s find out!

Sick of manually adding invoices into QuickBooks?

What is QuickBooks?

QuickBooks is a popular accounting software that many businesses use to manage their finances. With QuickBooks, you can keep track of income, expenses, invoices, and more — all in one place.

It has the capability to perform accounting tasks such as:

  •  Payroll management.
  •  Regulatory compliance.
  •  Data accuracy and validation.
  •  Cash flow analysis.
  •  Maintaining audit trails.

That said, can QuickBooks replace an accountant with these tools?

Can QuickBooks replace an accountant?

The short answer to “Can QuickBooks replace an accountant?” is it depends. 

QuickBooks is a game-changer for some businesses, but it’s not a one-size-fits-all solution. For example, you can’t use QuickBooks as a substitute for a certified accountant (CPA), especially for complex financial matters and tax planning.

Let’s take a closer look at when you can use QuickBooks to supplant an accountant.

When can QuickBooks be a suitable alternative to hiring an accountant?

Software can compete with the services an accountant offers, but can QuickBooks replace an accountant fully? It gets close in these two cases:

Small businesses with simple financial operations

QuickBooks might be all you need if your business has straightforward financial operations. For example, if you have a small construction firm with few expenses and clients, QuickBooks can handle your:

  • Invoicing.
  • Expense tracking.
  • Financial reporting. 
  • Basic inventory management.

In this case, your accounting system lets you manage finances without a dedicated accountant. It also might reduce errors commonly made in manual accounting. Because it integrates advanced features that challenge traditional accounting roles, your business stays more productive and accurate. As a plus, this means the software may reduce the need for manual accounting oversight. 

In other words, QuickBooks offers tools that mimic traditional accounting processes so you can focus your attention on bringing in clients and growing your business. 

Its cloud-based accessibility also makes it a convenient option, since you can access it from anywhere with an internet connection.

Cost savings for small business owners

If you’re trying to grow your company, you know making smart investments and saving costs where you can boost your revenue. 

One of the most significant advantages of using QuickBooks is the cost savings. Hiring an accountant or bookkeeper is expensive. In contrast, bookkeeping software is designed to be cost-effective, especially for growing businesses.

Despite being cheaper, QuickBooks simplifies complex accounting tasks with automation and offers insights and reports similar to those generated by accountants. It can support you in setting up your financial operations for success.

Accounting software systems outperform accountants in some ways, but a professional’s expertise is hard to surpass. So, even if you don’t need an accountant for your daily operations, consulting with one on some issues helps you avoid mistakes and keep your information in order. After all, there’s no way to eclipse human expertise and consultation needs.

Advantages of QuickBooks for businesses

Now that you know when QuickBooks can assume your accounting responsibilities, let’s explore how.

Automation of financial processes

Some accounting systems offset the need to hire someone to manage your finances because they can automate many tasks typically done by an accountant. 

QuickBooks allows businesses to manage finances without a dedicated accountant, as some of its features emulate an in-house professional’s responsibilities. The software offers:

  • Budgeting and forecasting tools.
  • Accounts payable and receivable functionality.
  • Customizable financial statements.
  • Invoicing capabilities.
  • Tax preparation features.
  • Financial analysis tools.
  • Bank account integration.

QuickBooks can also categorize expenses, reconcile bank transactions, and even remind you when bills are due. 

Financial software automation lets you replicate the benefits of having accounting employees, which frees you up to focus on growing your business.

It also comes with other benefits, such as a recurrent security and data backup to avoid information loss and reduce duplicate documents.

Improved transparency and visibility in financials

QuickBooks gives you a clear view of everything you need to track, including your:

  • Sales numbers.
  • Purchase orders.
  • Taxes.
  • Vendor payments. 

It generates reports that show you where your money is coming from and where it’s going so that you succeed in controlling your finances. This transparency helps you make informed decisions to improve your bottom line.

Streamlined data entry and accounting tasks

Manual data entry and paperwork cause mistakes in your accounting. QuickBooks simplifies these tasks to make it easier to keep accurate records. You can also connect your bank accounts and credit cards for real-time data import. 

This way, you’ll overtake the companies in your field in providing positive experiences and become the top choice for prospective customers.

Access to professional tax advice and support

QuickBooks has dedicated individuals to advise you on managing your taxes. Their tax consultants displace the need to hire people as full-time accountants, since they consistently outdo themselves to bring value to your company.

While QuickBooks can’t replace a certified tax professional, its consultation services can. They help you organize your financial data for tax season, which makes it easier for you to submit accurate reports on time and match the quality of those submitted by accountants.

Ability to customize your financial reports

Every business has unique financial needs. QuickBooks lets you customize your financial statements to fit your specific requirements. The accounting software has you covered, whether you need:

  • Detailed profit and loss statements.
  • A visual cashflow chart.
  • An overview of how each article is performing.

Increased efficiency in invoicing, billing, and payment processing

Invoicing can be a time-consuming task for small business owners. Luckily, QuickBooks makes it a breeze by automating the process. You can create professional invoices and set up recurring billing for your regular clients. It also offers multi-currency support so that you can grow your business internationally with the same ease.

Easier inventory tracking and management

If you deal with inventory, you can use QuickBooks’ tools to track and manage your stock. To avoid inventory shrinkage, you can: 

  • Monitor stock levels.
  • Set reorder points.
  • Generate reports.

Comprehensive real-time reports

QuickBooks provides you with real-time insights into your business’ financial health. You can access reports on: 

  • Cash flow.
  • Profit and loss.
  • Balance sheets — and more. 

This data empowers you to maximize your resources.

Get everything you need to run your business in one place.

Finding the right balance: Using QuickBooks in conjunction with an accountant

So, can QuickBooks replace an accountant? In some cases, it can. We’ve talked about the advantages of QuickBooks and how it’s a valuable tool for small businesses. But it’s not an all-or-nothing decision. 

QuickBooks bridges the gap between software and professional services, so if there’s something you can’t do through QuickBooks, your accountant can help, and vice versa. Here are some tips to find the perfect balance.

Collaborate effectively

Work closely with your accountant to ensure that they have access to your QuickBooks data. This collaboration lets them provide timely advice and insights.

Regular check-ins

Schedule regular check-ins with your accountant. Discuss your business’: 

  • Financial health.
  • Goals.
  • Upcoming challenges. 

These meetings help you stay on track and make informed decisions.

Tax season support

When tax season begins, your accountant can use your QuickBooks data to prepare accurate tax returns. This collaborative effort ensures you take advantage of all available deductions and credits while complying with tax regulations.

Strategic planning

Your accountant can help you create a long-term financial strategy. They can: 

  • Analyze your financial reports.
  • Identify trends.
  • Recommend ways to improve profitability and cash flow.

So, can QuickBooks replace an accountant? It can boost your financial operations and eliminate the need for a full-time accountant. However, it’s best to use a professional’s expertise along with QuickBooks.

Extend the power of QuickBooks with Method — #1 lead-to-cash automation

Method CRM simplifies your entire sales process, from capturing leads to closing deals and getting paid. With Method, you can register leads and customers separately, and track each transaction to keep your records in order.

So, the question isn’t “Can QuickBooks replace an accountant?” Instead, it’s, “How can I use QuickBooks to its fullest?” The software can automate many more processes than accounting when you integrate it with third-party applications, such as Method. 

So, using QuickBooks might not fully eliminate your need for an accountant, but it can support your operations and boost your revenue in many other ways.

Frequently asked questions

Do accountants use Excel or QuickBooks?

Accountants use various tools, and it often depends on the specific needs of their clients. While some accountants might use Excel for particular tasks, many opt for QuickBooks because of its efficiency and comprehensive features. 

As a designated accounting software, QuickBooks is the more robust option. It:

  • Simplifies financial management.
  • Reduces the risk of errors.
  • Helps with more things than bookkeeping.

Do CPA firms use QuickBooks?

Many CPA (certified public accountant) firms use QuickBooks for their clients. It helps accountants manage financial data effectively and handle several clients’ information at a time. CPA firms also use QuickBooks to generate insights and collaborate with clients.

Is QuickBooks as good as an accountant?

QuickBooks is a powerful tool, but it’s not a replacement for a qualified accountant. It’s essential to understand that QuickBooks can:

  • Handle many routine financial tasks.
  • Automate processes.
  • Provide real-time insights. 

However, an accountant brings: 

  • Special expertise.
  • Strategic financial planning.
  • A deep understanding of tax laws. 

It’s often best to use QuickBooks with an accountant for optimal results.

Meet Method, your next employee of the month. Start your free trial.

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Can QuickBooks handle multiple companies?

This software simplifies operations and manages finances, but can QuickBooks handle multiple companies? Click here to find out!

Can QuickBooks handle multiple companies? Read More »

No matter who you are, managing multiple companies is daunting and difficult. But the key to success lies in finding the right tools to:

  • Simplify your operations.
  • Stay organized.
  • Keep your financials in check. 

This brings us to a crucial question: “Can QuickBooks handle multiple companies?” 

In this article, you’ll discover how QuickBooks rises to this challenge. Whether you’re juggling different currencies or locations — or just trying to keep multiple business entities organized — find out how to make QuickBooks your best business ally.

Sick of missing invoices and other data in QuickBooks?

What is QuickBooks?

QuickBooks is a leading accounting software developed by Intuit designed to manage financial processes for small businesses and larger enterprises alike. 

It provides an intuitive interface through both an online browser and desktop version, so you can handle business activities whether you’re in the office or on the go. QuickBooks gives you the tools to easily: 

  • Track transactions.
  • Organize accounts.
  • Administer business activities. 

For businesses operating in more than one country or dealing with multiple currencies, QuickBooks Online offers comprehensive support. 

It also offers features for multi-company accounting and lets you tailor your accounting to the specific location of each business you operate.

Get started with your free trial of QuickBooks Online here

Can QuickBooks handle multiple companies?

A common question among users is, “Can QuickBooks handle multiple companies?” The answer is yes — with QuickBooks, it’s easy as it supports multi-company operations. 

However, although QuickBooks can be set up for various company profiles, each company file creation requires a separate QuickBooks Online subscription. 

Despite the cost, this setup is ideal for business owners operating several entities, as QuickBooks:

  • Offers vendor and customer lists segregation.
  • Facilitates the tracking of transactions across different businesses.
  • Allows for multiple business integrations.
  • Offers multi-currency support per company.
  • Supports multi-company data backup and restoration. 
  • Provides insights of software performance with multiple company files through advanced reporting. 
  • Streamlines operations for multiple businesses.

How to set up multiple companies in QuickBooks Online

Now you know that the answer to, “Can QuickBooks handle multiple companies?” is yes, but how do you set them all up? Copy the steps below for the perfect solution to coordinate multiple operations.  

Step 1: From your computer, go to the QuickBooks Online website. In your browser window, click on the “Sign Up” option to start the process of creating a new account. 

Step 2: Choose the version of QuickBooks Online that best fits the needs of your new company: Simple Start, Essentials, Plus, or Advanced. Pick the one that aligns with your business requirements and budget.

Step 3: The “Start interview” process guides you through entering crucial details such as your business name, industry, and company structure. Fill in these details accurately, as this step simplifies the process of multi-company bookkeeping and financial reporting.

Step 4: Once you’ve created your account, navigate to the “Settings” drop-down menu. Here, you can enter or edit your company information, such as your business address, tax details, and fiscal year.

Step 5: Configure your account settings to suit your business operations. This includes:

  • Setting up your chart of accounts.
  • Defining products and services.
  • Customizing invoices and other financial documents.

Step 6: If you need to give access to other team members or your accountant, go to the “Manage Users” section in your settings. Here, you can invite users and assign specific roles and permissions based on your team members’ responsibilities.

Step 7: For simplified financial tracking and separate financial reporting, connect your company’s bank accounts. This enables automatic imports for your transactions to save time and improve accuracy.

If you need to set up more companies, repeat the above steps for each new entity. Remember that you need a separate subscription for each one.

Once your companies are set up, QuickBooks makes it easier to switch between company profiles than having to sign out. Click on your company name at the top right of the screen, and a list of your companies will appear. Then, you can simply select the one you want to work on.

Wish you could get more from QuickBooks? Method makes it possible.

Benefits of using QuickBooks for multiple businesses

Centralized management

QuickBooks Online centralizes financial data from various businesses for easier oversight, as it offers a dashboard view for multiple companies. It lets you see all your businesses through a single platform for a holistic view of your financial health. Overall, it integrates data from different company accounts and has the capacity to accommodate multiple business structures to simplify your operations — no matter how many. 

Consistency in accounting

A significant problem business owners face is dealing with financial errors. QuickBooks helps you minimize errors and ensures consistent accounting practices across several entities. This is because it lets you apply uniform accounting standards across all your businesses. This is crucial for accurate comparison and analysis of business performance. 

Efficient data import/export

QuickBooks simplifies operations by facilitating efficient data import and export, including cross-company data transfer. This means you can transfer data between different company accounts, as well as external systems. This is a huge benefit when you’re consolidating reports or sharing data with external stakeholders.

Integrated features like payroll and invoicing

If you’re wondering, “How can QuickBooks handle multiple companies when it comes to payroll and invoicing?” With QuickBooks, you enjoy powerful functionality for these processes with integrated features such as customizable invoice templates per company and separate payrolls.

Customization for each company

Customize every aspect of your QuickBooks experience, including budgeting and forecasting for each entity.

Every business is unique, and QuickBooks lets you personalize every aspect of your QuickBooks experience. This way, you cater to the specific needs of each company, whether it’s:

  • Custom invoicing.
  • Budgeting and forecasting.
  • Specialized reporting.
  • Dashboards and unique chart of accounts setups.

Individual access control and permissions

With QuickBooks, you can govern user access control per company to grant specific permissions to different accountants or users. This lets you regulate and supervise who accesses specific information, which is vital for maintaining data security for each company.

Extend the power of QuickBooks with Method

When you pair QuickBooks with Method CRM, supercharges your business management capabilities — especially if you handle multiple companies. Here’s how:

  • Seamless integration: Effortlessly sync with QuickBooks to ensure real-time data consistency.
  • Enhanced customer relationship management: Coordinate and organize client interactions to improve customer service and retention.
  • Multi-tenancy support: Manage multiple QuickBooks accounts to simplify supervision and control across different entities.
  • Customizable workflows: Tailor business processes to fit your specific company needs.
  • Centralized data access: Get a unified platform to view and analyze data from all companies, which aids strategic decision-making.

Method empowers you with advanced tools for effective multi-company management so you can focus on growing your business, instead of just running it.

Frequently asked questions

How many companies can I have on my QuickBooks account?

A common question among users is “Can QuickBooks handle multiple companies?” The answer is yes. In fact, QuickBooks can accommodate an unlimited number of companies. 

QuickBooks’ dashboard is intuitively designed, making it simple and direct for people running multiple businesses. With its easy-to-navigate tabs and clearly labeled folders, you can organize your company files efficiently.

Simply follow the login process with your user ID and password, and you’ll have access to your company files — each with its individual chart of accounts and financial reporting. However, every company requires its own subscription. 

Which QuickBooks is best for multiple businesses?

For handling multiple businesses, QuickBooks Online is the best choice for customers. It offers more comprehensive options and provides tools for overseeing several companies, such as:

  • Integration with other software per company.
  • Multi-company dashboard with multi-company data analysis and insights.
  • Advanced reporting, including budgeting and forecasting per entity.
  • Inventory tracking per company.
  • Tax preparation for each entity.
  • Bank account linking per company. 
  • Increased user access.

So, can QuickBooks handle multiple companies, really? Yes, it’s the most ideal accounting solution that is capable of managing multiple entities. Each tab on your dashboard provides quick access to different aspects of your business, from income statements to the different ways to manage vendors. You can also access detailed guides on their pricing page.

What is the cheapest way to use QuickBooks?

For cost efficiency, QuickBooks Simple Start is the most inexpensive plan. However, when managing multiple companies, it’s important to note that you need to balance costs with the specific needs of each business. A more advanced plan may be more cost-effective in the long run, depending on the complexities of your businesses.

In this case, you should opt for QuickBooks Online, which offers subscription costs per company and a range of scalable solutions for businesses of all sizes.

Put your key people where they should be. Let Method handle the rest. Start your free trial.

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How to process ACH payments in QuickBooks Online

How to process ACH payments in QuickBooks Online? It’s easy. Learn how to handle payments in just a few steps and simplify your finances!

How to process ACH payments in QuickBooks Online Read More »

Simplifying your payment processes is crucial to maintaining your company’s financial health and a stable cash flow. To do this, you need to be able to process as many payment types as possible, including:

  • Debit card payments.
  • Credit card payments.
  • Direct deposit.
  • ACH transactions.

In this blog article, you’ll learn all about how the QuickBooks software processes online ACH payments, from dealing with individual sales receipts and online invoices to setting up recurring payments.

Follow these quick steps to learn how to set up ACH payments in QuickBooks Online and enhance your business’s financial operations.

Let’s get started!

Running your business takes more than bookkeeping.

What is an ACH (Automated Clearing House) payment?

ACH payments are electronic payments made directly between banks through the Automated Clearing House network. It’s a popular form of payment to transfer money without using: 

  • Paper checks.
  • Wire transfers.
  • Cash.

This method works for business-to-business (B2B) and business-to-consumer (B2C) transactions, such as vendor payments.

How to process ACH payments in QuickBooks Online

Here’s how to process ACH payments in QuickBooks Online:

Process a sales receipt or invoice

Image credit: Intuit QuickBooks

You can process payments using bank transfer for new invoices or sales receipts and for recurring sales receipts. 

Here’s how:

  1. Click on “+ New.”
  2. Choose either “Receive Payment” (for an invoice) or “Sales Receipt” (for a sales receipt).
  3. In the “Customer” drop-down menu, pick the customer’s name.
  4. In the “Payment method” drop-down menu, choose either “Check” or “QuickBooks Payment – Bank.”

How to set up recurring ACH payments in QuickBooks

You can also set up recurring ACH payments in case you need to schedule payment or automate transactions by following these steps:

  1. In your settings (gear icon), select “Recurring Transactions.”
  2. Go to “New” and choose “Sales Receipt” for the “Transaction Type.”
  3. Enter a name in the “Template Name” field and choose “Scheduled” as the “Type.”
  4. Select “ACH” for the “Payment Method.”
  5. Fill out the other required details following the onscreen steps and click “Save Template.”

Make sure you’ve set up members as customers.

How to process recurring sales receipts in QuickBooks

Screenshot showing scheduled recurring transactions in QuickBooks Online, highlighting the "credit card on file" icon.

Image credit: Intuit QuickBooks

Once you schedule ongoing ACH payments, you’ll receive the funds every period, provided your customer has sufficient funds in their bank account.

Here’s how you set them up:

  1. Navigate to “Settings” or click the gear icon, then select “Recurring Transactions”.
  2. Locate the recurring sales receipt for your customer and click “Edit.”
  3. In the “Payment method” drop-down list, select “Check” or “Credit card type”

If you need to update a recurring sales receipt, click “Save template” to keep the customer’s payment details.

Enter customer’s banking details

  1. Click on “Enter Bank info.”
  2. Input your customer’s:
    • Name
    • Account type
    • Account number
    • Routing number
  3. Choose “Use this account information in the future,” and you’re done! You’ll automatically receive your customer payments when they’re due.

Get authorization from the customer

Before saving any details, ensure you have your customer’s consent. Print an ACH authorization form and have the customer complete and sign it. 

QuickBooks automatically generates this form based on the details you just entered. You can easily download and reupload it once your customer has signed.

Process the payment

  1. On the transaction form, tick the checkbox beside “I have authorization and would like to process this transaction.”
  2. Review the transaction, then click “Save and send.”
  3. Modify the email message to your customer if necessary, then select “Send and close.”

That’s it! Now you know how to set up ACH payments in QuickBooks Online.

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What are the types of ACH payments?

There are two types of ACH payments — you can think of them as “pulls” and “pushes.”

ACH debit (pull)

An ACH debit is a type of ACH payment that pulls funds electronically from a bank account. In QuickBooks Online, businesses commonly use this method to collect bank payment from clients.

ACH credit (push)

An ACH credit is the opposite of an ACH debit. Here, you push funds from your bank account to another account. You can use this method to:

An ACH credit is the opposite of an ACH debit. Here, you push funds from your bank account to another account. You can use this method to:

How long does it take to process ACH payments in QuickBooks Online?

ACH deposits take between two and seven business days. Recurrent ACH payments take less time after the first transaction with an account.

Save time with the best QuickBooks payment processing integration

QuickBooks helps you with online payments and accounting processes. Method CRM helps you grow your business and get new customers. Together, they make an unstoppable team.

Method’s powerful integration with QuickBooks ensures you manage your business from end to end. It makes it easier to convert prospects into clients and make the most of every sales opportunity. Method offers:

  • A reliable, two-way sync with QuickBooks to keep your customers’ payment info up to date and accessible.
  • Invoice automation and direct payment collection across several channels.
  • Customer management to track all client interactions and improve communication.

Process ACH payments QuickBooks Online: FAQs

Are there fees associated with the QuickBooks Online ACH payment process?

QuickBooks charges a 1% processing fee for every ACH transaction. QuickBooks deducts this transaction fee immediately after funds reach your account. You may also get a notification to your email address about other fees, which QuickBooks deducts on the fifth business day of next month.

What is the difference between EFT vs. ACH?

EFT stands for electronic funds transfer and is a broader term for all digital payments. ACH is a specific type of EFT that is run between financial institutions through the Automated Clearing House network.

Does QuickBooks Online allow split ACH payments?

Yes, QuickBooks Online can handle split ACH payments, which lets you divide payment between different accounts. You can see your split payments under “Transaction List with Splits” in the “Reports” tab.

See how you can extend the limits of QuickBooks with Method. 

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Person paying with credit card

QuickBooks Online payment fees: What you need to know

Are you considering QuickBooks for your accounting needs? Keep reading to learn more about QuickBooks Online payment fees.

QuickBooks Online payment fees: What you need to know Read More »

When choosing your accounting software, it’s smart to keep an eye on your wallet. After all, the goal is to save time and money.

You might consider QuickBooks as your solution, but do you know about QuickBooks Online payment fees? These aren’t included in the monthly subscription fee, but they’re just as crucial to budget for. 

Keep reading to learn more about: 

  • The ins and outs of QuickBooks Online payment fees. 
  • Steps to send, record, and receive payments in QuickBooks Online. 

Let’s get started! 

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QuickBooks Payments

Screenshot of QB Payments from an invoice

Image credit: QuickBooks

To get a handle on QuickBooks Online payment fees, you first need to understand QuickBooks Payments. 

QuickBooks Payments is a one-stop solution for handling all your payments. It handles:

  • Credit cards. 
  • Debit cards.
  • PayPal.
  • Venmo. 
  • ACH bank transfers.

With QuickBooks Payments, you can: 

  • Accept credit cards, debit cards, and digital wallet payments. 
  • Accept bank payments and electronic checks. 
  • Easily enter payments on your mobile device. 
  • Automate your invoices for recurring payments.
  • Use the QuickBooks card reader and mobile app. 

Note that to access these features, you must budget for the additional cost of QuickBooks Online payment fees. 

QuickBooks Online payment fees

QuickBooks Payments includes additional fees for credit card processing. Payment processing fees are necessary for QuickBooks to:

  • Securely handle online transactions.
  • Maintain the payment system.
  • Deal with multiple payment channels.
  • Offer customer service. 
  • Comply with regulations.

Simply put, payment fees are key to a reliable and secure electronic payment system.

The extra cost of QuickBooks Online payment fees varies based on your:

  • Pricing plan. 
  • Sales volume.
  • Transaction type. 

So, what are the different types of QuickBooks Online payment fees?

Different types of payment and service fees

Here are the types of QuickBooks Online payment fees and their percentage amounts compared to other payment processors, like Square and Stripe. 

ACH fees

ACH (automated clearing house) fees apply to ACH bank transfers. These are electronic fund transfers between banks that move money from your customer’s bank account to yours. 

ACH payment fees per transaction: 

  • QuickBooks: 1%. 
  • Square: 1% with a minimum of $1. 
  • Stripe: 1.2%. 

Keyed-in payment fees

Keyed-in payment fees occur when you manually enter a customer’s credit card information for a transaction. For example, when you take a payment over the phone. 

Keyed-in transaction payment fees per transaction: 

  • QuickBooks: 3.5%. 
  • Square: 3.5% plus $0.15.
  • Stripe: 3.4% plus $0.30. 

Invoicing fees

These fees apply each time a customer pays an invoice or quick request online. 

Invoicing payment fees per transaction: 

  • QuickBooks: 2.99%. 
  • Square: 2.9% plus $0.30. 
  • Stripe: 2.9% plus $0.30. 

Card reader fees

Card reader fees apply each time your customer taps or inserts a card as their chosen payment method. These can be debit or credit card fees.

Card reader payment fees per transaction: 

  • QuickBooks: 2.5%. 
  • Square: 2.6% plus $0.10. 
  • Stripe: 2.9% plus $0.30. 

According to our research, QuickBooks Online payment fees are more cost-effective than other providers. This means lower rates and more money in your pocket. 

What’s more is that you also enjoy: 

  • No set-up fees. 
  • No monthly fees. 
  • No statement fees.

QuickBooks Payroll fees

Screenshot of QuickBooks payroll dashboard

Image credit: QuickBooks

Payroll is separate from payments, but it also has associated fees you need to be aware of.

QuickBooks Payroll is a separate package from Intuit that operates on a monthly plan. The Online version (QuickBooks Online Payroll) has three pricing options with different levels of functionality, while the Desktop version just has one.

These plans all carry fees for additional users. The most affordable option (Core) is $6 per user, while the most advanced plan (Elite) is $10 per user.

QuickBooks Payroll also charges a $150 cancellation fee for every instance, which negatively impacts your balance.

Now that you know about QuickBooks Online payment fees, let’s answer some key questions about payments. 

Get everything you need to run your business in one place.

How to receive payment in QuickBooks Online

Great job on making that sale! Now let’s get that payment into your account. 

Whether it’s from a card reader or an online invoice, receiving payments in QuickBooks is straightforward. 

Here’s how to receive payment in QuickBooks Online: 

  1. Go to “+ New” and select “Receive payment.”
  2. Select the name of your customer from the “Customer” dropdown list.
  3. Pick the payment method from the “Payment method” dropdown menu.
  4. In the “Deposit to” dropdown list, choose the account where you deposited the payment.                      

Tip: If you need to group the payment with others, select “Undeposited Funds” from the dropdown list.

  1. In the “Outstanding Transactions” section, mark the checkbox for the invoice you’re recording the payment for.
  2. Enter the “Reference no.” and “Memo” if needed.
  3. Once complete, hit “Save and close.”

And that’s it! You’ve now mastered how to receive payment in QuickBooks Online. 

How to send payment in QuickBooks Online

Paying bills to suppliers and vendors is a big part of running your company. QuickBooks Online makes this process smoother to keep every merchant on your good side. 

Here’s how to send payments in QuickBooks Online: 

  1. Go to the “Bill pay online” widget. 
  2. Click on “Make a payment.” 
  3. Enter the payment details for the payee. 
  4. Click “Choose delivery method.” 
  5. Click “Bank transfer” or “Check.” 
  6. Select “Review and submit.” 
  7. Select “Submit payment.” 

When you submit a payment, QuickBooks Online automatically creates a bill in the background for you. 

How to record QuickBooks payment fees

When dealing with QuickBooks payment fees, it’s important to know how to record them. 

QuickBooks automatically records deposits and fees for transactions made through QuickBooks Payments. But if you’re using a third-party payment processor like PayPal or Stripe, you’ll need to manually record these fees in QuickBooks. 

Here’s how to record QuickBooks payment fees: 

1. Create a sales receipt

To record QuickBooks Online payment fees, start by creating a sales receipt: 

  1. Click the “+ New” icon, then choose “Sales receipt.” 
  2. Select the customer from the “Customer” dropdown. 
  3. In the “Select a product/service” dropdown, select the product or service you sold. 
  4. Click “Save.”

2. Create an expense

Next, create an expense record for the fees you incurred from the sale. 

  1. Click “+ New,” then choose “Expense.”
  2. Choose the payment processor from the “Payee” dropdown. 
  3. In the “Category” column, pick the expense account and enter the amount. 
  4. Select “Save and close.”

3. Match your sales with your deposits

Now, match your sales with your deposits: 

  1. Click the “+ New” button and then select “Bank Deposit.”
  2. Select the account from the “Account” dropdown. 
  3. Check off the payment to include in the deposit. 
  4. In the “Add funds to this deposit” section, input payment fee details for “Received from” and “Account.”
  5. Select “Save and close.”

Get the most out of QuickBooks Online with Method

Method is the #1 lead-to-cash automation tool for QuickBooks users. Through its two-way sync with your accounting software, you’ll receive payments faster and keep your cash flow healthy. 

Say goodbye to the hassle of manual data entry — Method automates everything from approval workflows to customer management to eliminate tedious tasks. 

You can access your QuickBooks data from any location with an internet connection with Method’s mobile app. Plus, you get report generation tools to drive actionable insights on performance and enhance cash flow planning.

Whether it’s recurring billing or one-time transactions, Method ensures stress-free payment processing. 

QuickBooks Online payment fees: Key takeaways

Understanding QuickBooks Online payment fees is crucial. These processing fees vary based on factors like sales volume and transaction type.

While QuickBooks Online makes it easier to handle payments, you’ll need to manually record transactions done through third-party processors. 

For a smoother QuickBooks payment process, consider integrating with tools like Method. You can receive payment in QuickBooks Online and Desktop easily and automate tasks like manual bookkeeping for a better bottom line. 

See how Method simplifies your payment processing today. 

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How to record credit card payments in QuickBooks Desktop 

Want to learn how to record credit card payments in QuickBooks Desktop? Our simple guide covers just that and more.

How to record credit card payments in QuickBooks Desktop  Read More »

Are you tired of the endless hassle and confusion that comes with managing credit card payments? The good news is that you don’t have to do it alone. QuickBooks Desktop is a powerful ally to simplify your accounting processes. 

In this blog, you’ll dive into the essentials of how to record credit card payments in QuickBooks Desktop.

You’ll learn:

  • How to enter credit card payments in QuickBooks Desktop. 
  • How to reconcile your credit card account. 
  • Why you should enter credit card payments in QuickBooks Desktop. 

By the end, you’ll be able to navigate your financial transactions and enter credit card payments easily — even without any accounting experience. 

Let’s get started!

Sick of missing invoices and other data in QuickBooks?

How to add credit card charges in QuickBooks Desktop

The first thing you’ll want to know when learning how to record credit card payments in QuickBooks Desktop is how to add credit card charges. 

Luckily, this process is easy and the same whether your customer has made a full or partial payment. Just follow this step-by-step guide for adding charges in the Desktop version:

  1. Navigate to the “Banking” menu and select “Enter credit card charges.”
  2. Choose the relevant card account from the credit card drop-down menu. By default, the type is set to “Purchase/charge.” To record a credit or refund, select “Refund/credit.”
  3. Check under vendors from the “Purchased From” dropdown and select the right one.
  4. Choose the date of the transaction.
  5. Optionally, add a memo description to explain the charge or credit card refund.
  6. Under the “Expenses or Items” tab, enter the details of the expenses or items you wish to track.
  7. When you’re done in the Expenses tab, select “Save & close” to record the transaction. 

How to reconcile credit card account

Before covering how to record credit card payments in QuickBooks Desktop, it’s important to stress the significance of account reconciliation. Neglecting it leads to inaccurate finances and even legal trouble.

So, reconciling your credit card account is a crucial process. It involves matching your individual transactions from your bank statements with those in QuickBooks. Here’s how to do it:

  1. To start off, double-check that your opening balance is accurate.
  2. Ensure you’ve entered all transactions for the statement period.
  3. Go to the ”Banking” menu bar and select “Reconcile.”
  4. Match the transactions on your bank statement with those in QuickBooks, checking off each as you go.
  5. Once you have a $0.00 difference between your statement and QuickBooks data, you’re all done. 

How to record credit card payments in QuickBooks Desktop

Now, let’s dive into how to record credit card payments in QuickBooks Desktop:

  1. From the “Banking” menu, select “Write checks.”
  2. From the dropdown menu, choose the bank account you’ll use to pay the credit card.
  3. Select the bank account payment date.
  4. Choose the credit card company from the “Pay to the order of” dropdown.
  5. Enter the payment amount.
  6. Under the “Expenses” tab, select your credit card account.
  7. Save and close the transaction

How to record a credit card payment from an overpayment

In case of an overpayment on a credit card, you can adjust the reconciliation process one of two ways. You can:

  • Enter the ending balance as a negative amount during reconciliation to carry it over to the next month.
  • Split the banking transaction by assigning multiple payees and amounts as needed.

Here’s how:

1. Find the transaction that reflects the overpayment in your QuickBooks Desktop ledger.

Choose to “Split” the transaction.

2. In the split transaction window, assign portions of the overpaid amount to different payees or expense categories as needed. For example, if the overpayment is to be allocated to future expenses, you can assign it accordingly.

3. Assign the appropriate amounts to each split to accurately reflect how the overpayment should be allocated.

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Why enter credit card payments in QuickBooks Desktop?

There are several benefits when you enter payments from credit cards in QuickBooks. Here are some reasons why it’s worth learning how to enter credit card payments in QuickBooks Desktop. 

First, it simplifies the reconciliation process. By learning how to enter credit card payments in QuickBooks Desktop, you can easily compare your QuickBooks records against your credit card statements to keep them aligned. This ensures that you track and account for all transactions, which is crucial to maintain accurate records and identify discrepancies quickly​​.

Also, with credit card transactions you’ve recorded in QuickBooks, it’s easier to spot billing errors. You can compare your QuickBooks data against credit card statements to quickly find any: 

  • Unauthorized charges.
  • Duplicate entries.
  • Discrepancies in amounts charged. 

This keeps your data up to date and protects against fraudulent activities​​.

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What else do you benefit from once you learn how to enter credit card payments in QuickBooks Desktop? Managing credit card payments in QuickBooks allows for centralized tracking of your financial transactions. 

This simplifies your record-keeping process and provides valuable insights into overall business performance. As a result, you get better control over your finances, where you:

  • Accurately track expenses and income.
  • Manage cash flow more efficiently. 
  • Make informed decisions based on comprehensive financial and accurate reports. 

Also, learning how to enter credit card payments in QuickBooks Desktop saves you from wasted time and common errors. This is largely because QuickBooks’ automated system reduces the need for manual data entry, which is especially beneficial if you have a high volume of credit card transactions.

Lastly, QuickBooks is able to integrate with various applications like PayPal and Square to enhance its functionality. This makes it easier to run your business and collect payments, as you can seamlessly manage financial transactions across different platforms​.

Wrap-up: How to enter credit card payments in QuickBooks Desktop

Knowing how to enter credit card payments in QuickBooks Desktop is an essential practice for efficient financial management. The benefits you gain include:

  • Simplified reconciliation and error detection for accurate reports and data.
  • Better control over finances and reduced manual errors.
  • Great integration with other apps.

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  • Powerful two-way sync with QuickBooks to reduce double-data entry time and errors.
  • Enhanced customer management for a 360-degree view of your clients.

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How to record credit card payments in QuickBooks

Tracking credit card payments is crucial for growing businesses. Keep reading to learn how to record these transactions in QuickBooks.

How to record credit card payments in QuickBooks Read More »

Recording your credit card payments in QuickBooks Online isn’t just about keeping accurate reports. It’s about building a rich transaction history that helps you identify areas for growth. 

Knowing how to record credit card payments in QuickBooks Online is crucial for dynamic and modern businesses, as it:

  • Gives you insights into your spending patterns.
  • Helps with financial planning.
  • Makes tax season less daunting.

In this blog, you’ll uncover everything from setting up a credit card account to recording payments — including different methods like checks and bank transfers. 

By the end, you’ll know exactly how to record credit card payments in QuickBooks Online. Let’s dive in!

Grow your business without leaving QuickBooks Online.

Understanding credit card payments in QuickBooks

For a growing business, paying only with checks or through bank transfers is not realistic. It needs the flexibility to make quick payments and swift transactions immediately.

The good news is QuickBooks helps you track your payments, even when you’re paying your credit card bill. All you need to do is register your bank accounts and fill in some information. QuickBooks will do the rest: track your expenses, profitability, etc.

How to set up a credit card account in QuickBooks

Before you learn how to record credit card payments in QuickBooks, there’s a crucial first step. You need to set up a credit card account on the platform. This setup lets you track and manage your credit card transactions.

Setting up a credit card helps you:

  • Increase the accuracy of your financial statements: Generate detailed reports that reflect profit and loss.
  • Simplify payments: Ensure convenience by using your credit card option and paying later.
  • Connect your accounting processes: Gain visibility into your credit card balance, from budgeting to expenses, for a simplified accounting process.
  • Get your resources faster: Quickly pay for what you need, then track your company credit card’s expenses with ease.

So, here are the steps to register a credit card so that you can find out how to record credit card payment in QuickBooks Online:

  1. Open QuickBooks and log into your account.
  2. Navigate to the “Company” menu bar.
  3. Under the “Chart of Accounts” drop-down menu, click the “+” symbol and add a new credit card.
  4. Fill out the card’s details, including the account’s balance on the date you’re adding it, the credit card type, etc.
  5. Save your changes and close the window.

How to record credit card payments in QuickBooks Online

Now that you’ve registered credit card accounts, here’s how to record credit card payments in QuickBooks Online:

  1. Click on the “+ New” drop-down menu and select “Pay down credit card” under “Other.”
  2. Capture the amount you paid, the payment date, and the origin bank account.
  3. Save your changes and close the window.

Remember, recording payments accurately is crucial for your financial tracking.

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Different methods to record payments

Aside from credit card payments, you can also record payments and expense details via common transaction methods, such as cheques or bank transfers. These transaction details are recorded slightly differently, but the process is simple.

Credit card payments by bank transfer

  1. When you transfer funds to pay your card, select “Transfer” (instead of “Pay down credit card”).
  2. Select the corresponding origin and destination accounts and fill out the required information.
  3. Save your changes and close the window.

Credit card payments by check

  1. When capturing check payments to deposit in QuickBooks, select “Suppliers” and then “Check” under the “+ New” drop-down menu”.
  2. Set the payee as the destination bank.
  3. Fill in the “Bank account” field with the details of the origin bank account.
  4. Complete the rest of the required data, then save and close.

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QuickBooks helps you record payments, but Method helps you get paid. Together, they make the perfect team.

With Method, you 

  • Simplify your lead-to-cash process to get new clients.
  • Make every sale.
  • Increase your customer satisfaction.

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How to pay vendors in QuickBooks Online

Learn how to pay vendors in QuickBooks Online. This guide shows you how to handle payments and your different payment options.

How to pay vendors in QuickBooks Online Read More »

You rely on your vendors to provide your business with essential goods and services. So, you need to make sure they get paid on time to maintain strong business relationships with them.

Learning how to pay vendors in QuickBooks Online accomplishes this quickly and easily. From understanding how the software handles payments to exploring different payment options, keep reading to learn how to manage your payables effectively.

Grow your business without leaving QuickBooks Online.

How does QuickBooks Online handle vendor payments?

Before going over how to pay vendors in QuickBooks Online, let’s discuss why you’d want to.

You can manage and track payments through your QuickBooks Online account using QuickBooks Bill Pay. It’s an online payment portal that lets you send checks and automated clearing house (ACH) payments, which are bank transfers that place direct deposits in your vendor’s bank account.

The best part is that your vendors don’t have to set up anything on their own end. With this convenient solution, you can pay your vendors directly through QuickBooks Desktop or Online, and have your accounts payable and accounts receivable updated automatically. 

Payment options and fees associated with payments

The basic version of QuickBooks Bill Pay does not include an additional subscription fee. However, you are limited to five ACH payments per month.

The QuickBooks Bill Pay Premium plan costs $15 a month and includes 40 ACH payments in a month.

Finally, the Elite plan costs $90 a month and includes an unlimited number of ACH payments. You should choose your plan around the number of vendors you do business with.

In addition to these subscription fees, each ACH payment costs $0.50 per transaction for the Basic and Premium plans, and $1.50 per transaction for checks for every plan.

Let’s take a closer look at how to pay vendors in QuickBooks Online using Bill Pay.

How to pay a vendor in QuickBooks Online

How to pay a bill

You can enter and pay bills entirely in QuickBooks Online. It only requires a few simple steps:

  1. Navigate to “Bill pay online widget” from your QuickBooks dashboard.
  2. Click the “Make a payment” tab.
  1. Enter the payment information for your vendor.

Image credit: QuickBooks

  1. At the bottom, click “Choose delivery method.”
  2. Click “Bank transfer” or “Check.” If you haven’t already set up your vendor for a bank transfer, you’ll also need to enter the bank account details. If you are paying by check, you will need to select a process date and edit the vendor information if necessary.

Image credit: QuickBooks

  1. Click “Review and submit” and then “Submit payment” to finish.

How to enter bills and bill payments

Follow these detailed steps to create an unpaid bill from your vendor and then complete the payment:

  1. From the menu on the left side of the screen, select “Get paid & pay” and then “Bills.” Depending on your version of QuickBooks, the interface might instead show “Expenses” and then “Bills.”
  2. At the top right of the screen, click “Add bill” and choose from the options in the drop-down menu.
  3. For a new bill, you can upload an invoice from your computer by choosing “Upload from computer,” and QuickBooks will automatically fill in the information it scans from the document. You can edit this information as necessary.
  4. Alternatively, you can select “Create bill” to enter this information manually.
  5. Once your vendor information has been entered, click “Save and close” at the bottom right corner of the screen.

This is the first step to knowing how to pay vendors in QuickBooks Online.

How to record partial payments towards bills

If you want to pay parts of your invoice with different payment methods, or you want to set up payment installments, then partial payments make sense for you.

To record a partial payment towards an invoice, simply follow the same steps as above and enter the payment amount you wish to make towards the bill. 

Then, schedule the payment for your preferred date. Here’s how to pay vendors in QuickBooks Online using scheduled payments:

  1. Select “Expenses,” then “Bills.”
  2. Click “Schedule Payment” on the related bill.
  3. Select “Edit,” then enter the partial amount.

You can repeat these simple steps as many times as you need for each portion of the bill — with whatever method of payment you want.

How to view bills and bill payments in QuickBooks Online

Now that you know how to pay vendors in QuickBooks Online, you’ll need to know how to access those payment details and adjust any incorrect or outdated information.

You can view all of your bills by following these simple steps:

  1. Select “Get paid & pay” or “Expenses,” depending on your version of QuickBooks.

Image credit: QuickBooks

  1. Select “Bills.”
  2. You’ll see three tabs labeled “For review,” “Unpaid,” and “Paid.” Select one of the tabs to view the bills in that category and select further actions for it.

Image credit: QuickBooks

How to view and edit vendor’s payment information

You can update vendor information at any time. To view and edit a vendor:

  1. From the main menu on the left side of the screen, select “Get paid & pay” and then “Vendors.” Depending on your version of QuickBooks, it might instead show up as “Expenses” and then “Vendors.”
  2. Find the vendor you want to edit in your vendor list and select them.
  3. Make any adjustments to the vendor’s information and save your changes.

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How to find your unpaid bills in QuickBooks Online

Bills that you haven’t yet paid are listed separately in your QuickBooks Online account. To check payment details for those unpaid bills:

  1. Select “Get paid & pay” or “Expenses,” depending on your version of QuickBooks. 
  2. Select “Bills.”
  3. Click the tab labeled “Unpaid.”

How to pay vendors via ACH in QuickBooks Online

You can pay your vendors from the same place where you view your unpaid bills.

  1. Select “Get paid & pay” or “Expenses” depending on your version of QuickBooks. Then select “Bills.”
  2. Click the “Unpaid” tab near the top of the screen to view the bills that have not yet been paid.
  3. To the right of the unpaid bill you want to pay, click “Schedule payment.”
  4. Choose the bank account you want to withdraw from on the right side of the screen. If you haven’t yet set up your bank account details, you can do that from this page.
  5. Enter the payment method, payment amount, withdrawal date, and vendor information into the form. When you’re finished, click “Next.”
  6. You will have a chance to review your payment info. If you’re ready to make the payment, click “Schedule payment” to finalize it.
  7. Match your payment from the bank by selecting “Transactions” from the main menu on the left. Select “Confirm,” and you’re done!

ACH transactions and checks are your two options for making an electronic payment. QuickBooks Bill Pay won’t accept credit cards. If you’re interested in making credit card payments on your bills, then your vendor needs to set up their own payment system.

Benefits of QuickBooks ACH vendor payments

Being able to pay outstanding bills with ACH payments means you can complete your financial transactions in the same place that you view the rest of your business expenses. This helps you organize your workflows and keep your records up to date.

Knowing how to pay vendors in QuickBooks Online keeps your business on top, as it’s fast, convenient, and secure.

How to pay vendors in QuickBooks Online FAQs

Can I edit or cancel an online payment after sending it?

Yes, it’s possible to edit or cancel your online payment after you send it as long as you do it before 12:00 a.m. on the withdrawal date. You can find this date in the automated confirmation sent to your email address when you scheduled the bill payment.


After this time, the bill will be processed by the bank and you won’t be able to change it.

To cancel or edit a payment after scheduling it:

  1. Select “Get paid & pay” or “Expenses,” depending on your version of QuickBooks. Then select “Bills.”
  2. Click “Show Bill Pay payments.”
  3. Find the bill you want to edit or cancel from the list and click “View details.”
  4. Click “Cancel this payment.”

How can I view the status of a payment I have sent?

The payment status of your full payment history is viewable at any time from the “Bill Pay payments” page. On this page, choose between the following tabs:

  1. The “Bills” tab to view all paid and unpaid bills.
  2. The “Unpaid” tab to view only unpaid bills.
  3. The “Paid” tab to view only paid bills.

Wrap up: How to pay vendor bills in QuickBooks Online

QuickBooks Bill Pay is a safe, secure, and efficient way to pay vendors. Understanding how to pay vendors in QuickBooks Online lets you keep your financial records in the same place, so you don’t need to juggle multiple logins to track your finances.

If you’re looking for a better way to collect payment from customers, including adding e-signature capture to your own invoices, consider extending the power of your QuickBooks account using Method.

This software platform integrates seamlessly with your QuickBooks account to give you powerful customer relationship tools and two-way, instant information sync. Gain more options for online payment gateways using Method.

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How to allow partial payment on invoices in QuickBooks

Learn to allow partial payments on invoices in QuickBooks with ease. Our simple guide shows you how.

How to allow partial payment on invoices in QuickBooks Read More »

When it comes to financial management, times can get tough. The good news is that QuickBooks recognizes this and offers a straightforward solution: partial payments on invoices. 

Picture a scenario where customers can make payments in chunks to ease their financial burden. That’s what happens when you allow partial payment on invoices in QuickBooks. 

In this blog, you’ll dive into the QuickBooks partial payment invoice functionality and get insights into its benefits and practical applications. By the end, you’ll know the best approach to manage your invoices and maintain financial stability.

Let’s get started!

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Managing partial payments in QuickBooks: A quick start guide

When you manage customer payments in QuickBooks, it’s often helpful to allow payments in smaller, “partial” portions rather than in full upfront. QuickBooks makes this possible with its partial payments feature and progress invoicing, which lets you break down payments to keep cash flow steady.

You can effectively manage partial payments in QuickBooks Online by following these key steps:

1. Recording a partial payment

  1. Log into your QuickBooks Online account.
  2. Click the “+” icon and select “Receive Payment”  
  3. In the “Customer” dropdown, select the customer’s name to display their open invoices.
  4. In the “Outstanding Transactions” section, check the box next to the relevant invoice.
  5. Now, in the “Payment” column, you enter the partial payment amount received.
  6. Choose the appropriate “Payment Method” (e.g., credit cards, bank transfer).
  7. You can now select the “Deposit to” account where the payment will be recorded.
  8. Finally, you click “Save and Close” to record the payment.
  9. You can click the pencil icon to adjust any additional payment details if required.
A screenshot showing the "Receive Payment" screen in QuickBooks Online.

Image credit: Intuit

2. Sending a payment reminder

  1. First, you should navigate to the “Sales” tab in the left-hand menu.
  2. Then, click on “Customers”.
  3. Select the customer to which you need to send the reminder from the list.
  4. Click the dropdown arrow in the “Action” column next to the invoice.
  5. Now you can choose to “Send Reminder”.
  6. Review your email content, and click “Send” to dispatch the reminder to your customer.
A screenshot showing how to send invoice payment reminders in QuickBooks Online.

Image credit: Intuit

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Understanding partial payments in QuickBooks

In order to understand how to allow partial payment on invoices, QuickBooks users need to have a good understanding of what a partial payment is.

A partial payment is a transaction that lets your customers pay their total invoice amount in fractions. This option is important to have in scenarios where a full immediate payment for an invoice is challenging for your client. Businesses in various industries allow partial payment on invoices in QuickBooks, offering a sensible solution to managing finances and tracking progress on outstanding balances.

Businesses in various industries allow partial payment on invoices in QuickBooks, as it offers a sensible solution to managing finances. 

For example, in the events industry, cash flow can be variable, with income tied to specific events. Making partial payments helps you balance your expenses against the fluctuating income and avoid cash flow issues.

Benefits of allowing partial payments

The partial payment functionality in QuickBooks is a valuable feature that strengthens customer relationships with payment flexibility. 

When you allow customers to pay with an initial payment or a custom payment schedule, it reduces the upfront financial pressure. It’s a popular payment option and encourages more regular payments.

Offering partial invoices also has several key financial advantages:

Increase sales

When you give your customers the choice to make installment payments, provide estimates that fit their budget, or pay a partial payment upfront, you make your products and services more accessible. 

This approach often leads to larger purchases and increased sales receipts as your customers will feel more comfortable making purchases without requiring immediate, full invoice payment. 

Drive customer loyalty

Having the option to allow partial invoices for affordable price options strengthens the loyalty of your customers. A flexible payment method builds trust, and positions your business as one that prioritizes the needs of your customers first.

Loyal customers are likely to return and also make future purchases, providing a more steady and reliable stream of revenue to your business. 

Attract new customers

Partial payment options allow your business to attract new customers who may not have even considered your products and services due to a tight budget. 

When you advertise flexible payment schedules, you’re opening the door for customers who much prefer (or rely on) installment payment plans.

Common setbacks with partial payments

While partial payments do offer some flexibility, there are some potential drawbacks you need to be aware of:

Higher fees

Some payment processors may charge you higher fees for installment transactions or merchant services fees for needing to process multiple payments. In any case of overpayment, a credit memo can be issued to adjust the amount to keep your records accurate.

Integration issues

Your business may experience challenges integrating partial payment options across systems if still using QuickBooks Desktop or other platforms that might have difficulty syncing with online payments.

“Hidden” consumer costs

Depending on the payment agreement schedule, you or your customers may face hidden costs such as interest or fees. Maintain transparency by ensuring you provide a clear description of terms and payment processes so that your customers are aware of any extra costs.

How to manage partial payments

Understanding how to allow partial payment on invoices in QuickBooks is key to maintaining a healthy cash flow. This is especially important for accounts payable and accounts receivable, where partial payments are often a reality.

To effectively manage partial payments in your accounts receivable, it’s essential to have a clear system in place. This includes:

  • Setting clear payment terms: Define and communicate the payment terms for partial payments, including any interest or fees for late payments. You should also include the expected time frame for the complete payment.
  • Recording partial payments: Ensure each payment is accurately recorded against the outstanding invoice. This includes selecting the correct Payment Item to categorize each transaction, helping maintain clear financial records.
  • Regular follow-ups: Communicate with customers consistently about their balance payments and send regular reminders for the pending amount.

On the flip side, in your accounts payable, making partial payments helps you manage cash flow more effectively. By paying off portions of an outstanding balance, you maintain good relationships with your suppliers while you balance your business’ liquidity.

Here are some key steps to manage it effectively: 

  • Negotiating terms with suppliers: Communicate with your suppliers to agree on partial payment terms that work for both parties. This includes negotiating payment schedules or discounts for early payments.
  • Prioritizing payments: Determine which invoices should be paid first based on factors like due date, importance of the supplier, or potential discounts for early payment.
  • Accurate record-keeping: Maintain detailed records of each QuickBooks partial payment invoice made to ensure clarity in financial statements and aid in future financial planning, and prevent double entry errors by linking payments directly to invoices.

An initial partial payment also serves as a confirmation for the vendor to start working on your order, ensuring that your banner is ready on time for the event. Partial payments provide flexibility. You can allocate funds to different aspects of the event without compromising on quality or vendor relationships.

When you allow partial payment on QuickBooks, it builds trust among your vendors. This leads to better service and possibly favorable terms in the future.

Stop spending your day sending emails, estimates, and invoices.

How to pay vendors in QuickBooks Online

To pay vendors in QuickBooks Online, follow these steps:

  1. Access the vendor’s invoice by navigating to your Bill pay online widget. 
  2. Select “Make a payment” and enter the partial payment amount or the amount you wish to pay initially. 
  3. Choose how you want to pay, whether it’s a bank transfer or credit. 
  4. Review and confirm your payment details by double-checking your amount and payment information. 
  5. Submit the payment. 
  6. Record the partial payment. QuickBooks Online automatically records this against the invoice.
  7. Keep an eye on the outstanding balance. 
  8. For any remaining payments, repeat these steps for the rest of the payments.
A screenshot showing how to make a payment in QuickBooks Online.

Best practices for precise invoice and payment management

To ensure accuracy in handling invoices in QuickBooks, consider implementing these best practices.

First, use QuickBooks’ customization options to:

As a result, you enhance brand awareness and client relationships. QuickBooks offers customization options for:

  • Adding logos.
  • Contact details. 
  • Personalized messages.
  • Sales forms.

Next, implementing efficient follow-up practices is crucial. Have clear channels for sending payment reminders — and consider automating this using QuickBooks’ features. 

Proactive measures also include tracking payment patterns and addressing concerns promptly. Establish escalation procedures for delinquent accounts, like sending collection letters or involving collection agencies.

You can also integrate QuickBooks with accounts receivable management tools to sync data automatically and reduce manual entry errors. 

Better yet, automate matching payments with related invoices to improve accuracy and minimize missed or duplicate payments.

How QuickBooks users can strengthen their sales process

Method is a powerful tool for QuickBooks users. It offers a suite of features to simplify and automate every stage of your sales and payment processes, including:

  • A powerful, two-way sync with QuickBooks to keep customer information and financials up to date.
  • The ability to automate invoicing and payment collection directly from your CRM to save time, reduce errors, and enjoy a consistent cash flow.
  • Efficient customer management that tracks all customer interactions and sales activities to provide a clear overview from lead generation to final payment.
  • Provides valuable key metrics to analyze sales performance and payment trends.

How to allow partial payments on QuickBooks Online invoice FAQs

What are payment plans or installment plans?

Payment plans, also known as installment plans, let customers pay for a product or service over time. They’re a form of customer financing that lets customers make purchases with partial payments over time, if they can’t afford the full amount upfront. 

Depending on the contract, these plans may allow for flexible payment amounts or require specific amounts on set due dates. This makes them a versatile payment option for customer payments.

Is a payment plan a loan?

No, a payment plan is not a loan. While it’s similar in that it provides financing options for a product or service, loans are typically issued by financial institutions like banks and credit unions. 

Payment plans allow customers more flexibility, including the option to stop customer payments if the product is defective. Companies may repossess the product if a customer cancels without a valid reason, similar to the payment terms of a loan.

Why should a business accept partial payments?

A business should accept partial payments through installment plans, as they offer these benefits:

  • Increased sales. 
  • Improved customer loyalty. 
  • Higher order values. 
  • Attracting new customers.
  • Stable cash flow. 

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