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Using Statements in QuickBooks: The Basics

Most small businesses use invoices for billing customers. But there are times when you may want to send statements instead of – or in addition to – invoices.

One of the more enjoyable parts of your job is probably sending invoices to your customers to bill for products and/or services is probably one of the more enjoyable parts of your job – second only to recording payments received. Thanks to the company file you’ve built in QuickBooks, creating invoices is generally a very simple process that requires no duplicate data entry.

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Figure 1: You probably use QuickBooks’ invoice forms frequently, so you know how much easier it is to fill them out than to create paper bills.

QuickBooks also includes easy-to-use templates for another kind of customer form: the statement. These forms are generally not used nearly as frequently as invoices. However, you may find them more appropriate if you:

  • Want to create a form that lists all of a customer’s open charges
  • Have a customer who accrues multiple charges before being billed
  • Receive advance – or regular — payments, or
  • Need a historical accounting of a customer’s activity, including charges, payments, and balance.

Limitations of Statements

QuickBooks places some restrictions on statements. For example if you have a number of related charges for which you want to create a subtotal for, you’ll have to use an invoice. Statements also cannot include sales tax, percentage discounts, or payment items. Products or services requiring descriptions that run more than a paragraph can’t go on a statement. Customization options, too, are limited: you can’t add custom fields to the statement form, nor can you include a message to your customers, like, “We appreciate your business.”

The “Reminder Statement”

There may be occasions when you want to create a form that lists invoices received, payments made, and any credits given for one or more customers. This may be necessary when, for example, a customer disputes a charge. You may also want to send out these statements to remind customers of delinquent payments.

You do not have to enter any new data for these statements. Instead QuickBooks will pull the existing activity that you ask for in the Create Statements window, shown below. To get there, either click on the Statements icon on the home page, or open the Customers menu and select Create Statements.

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