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Best Practices

Optimize your QuickBooks invoicing workflow with these proven best practices. This guide covers data management, invoice creation workflows, payment tracking, and team collaboration.

Data Management

Contact Data Quality

✅ Maintain Accurate Contact Information:

  • Keep email addresses current and verified
  • Fill in all relevant fields (name, phone, address)
  • Use business emails (more stable than personal)
  • Validate email format before creating invoices
  • Update contacts when information changes

❌ Avoid:

  • Using temporary or disposable emails
  • Leaving contact names or emails blank
  • Using shared email addresses for multiple contacts
  • Ignoring bounced email notifications

Deal Amount Accuracy

✅ Set Deal Amounts Correctly:

  • Enter accurate deal amounts before invoicing
  • Update amounts if scope changes
  • Use deal currency that matches QuickBooks
  • Round to appropriate decimal places
  • Document any amount adjustments

❌ Avoid:

  • Creating invoices from deals with $0 amount
  • Forgetting to update amounts when deal changes
  • Mixing currencies (USD deals with EUR invoices)

Contact-Deal Associations

✅ Associate Contacts Properly:

  • Always associate primary contact with deal
  • Add billing contact if different from primary
  • Link company record for context
  • Use consistent contact for all invoices on same deal

❌ Avoid:

  • Creating invoices from deals without contacts
  • Changing primary contact mid-project without reason
  • Using different contacts for each invoice

Invoice Creation Workflow

Pre-Invoice Checklist

Before creating any invoice:

  • Deal amount is accurate and up-to-date
  • Primary contact is associated with deal
  • Contact has valid email address
  • Deal is in appropriate stage (“Closed Won” or “In Progress”)
  • Payment structure defined (single or multi-step)
  • Know which tax code applies to this customer/product
  • Payment terms agreed upon with customer

Invoice Creation Process

✅ Follow Consistent Steps:

  1. Verify deal data (amount, contact, stage)
  2. Open QuickBooks Invoices tab
  3. Click Create Invoice
  4. Select appropriate invoice type (Deposit/Follow-up/Final)
  5. Review calculated amount
  6. Verify customer email (double-check before sending)
  7. Choose correct tax code
  8. Set payment terms or due date
  9. Add memo (project name, milestone, thank you)
  10. Choose email option (Send now/Schedule/Manual)
  11. Review all fields before submitting
  12. Submit and verify success

Invoice Timing

✅ Best Times to Invoice:

  • Deposit: Upon contract signing or project start
  • Follow-up: Immediately after milestone completion
  • Final: Upon project delivery and acceptance
  • Email delivery: Business hours in customer’s time zone

❌ Avoid:

  • Invoicing before work begins (except deposits)
  • Delaying invoices long after work completed
  • Sending invoices late at night or on weekends
  • Creating invoices without clear milestones

Multi-Step Invoicing

Planning Payment Structure

✅ Define Structure Upfront:

  • Document payment schedule in contract
  • Tie payments to specific milestones or dates
  • Choose percentages that match project phases
  • Communicate schedule to customer clearly
  • Note structure in deal properties

Common structures:

  • 30/70: Moderate-risk projects
  • 50/50: Balanced payment
  • 30/40/30: Multi-phase projects
  • Equal installments: Long-term projects

Creating Multi-Step Invoices

✅ Follow Invoice Sequence:

  1. Deposit invoice:

    • Create at project start
    • Typically 20-50% of total
    • “Send now” email option
    • Wait for payment before starting work

  2. Follow-up invoice(s):

    • Create when milestone reached
    • Percentage matching milestone value
    • Send immediately after completion
    • Document milestone in memo

  3. Final invoice:

    • Create upon project completion
    • Remaining balance
    • Include any final deliverables note
    • Prompt payment terms (Due on receipt or Net 15)

Tracking Multi-Invoice Projects

✅ Stay Organized:

  • Note all invoice numbers in deal timeline
  • Track percentage invoiced vs. paid
  • Update deal stage based on invoicing progress
  • Calculate remaining balance before creating final invoice
  • Use consistent memo format for all invoices in a project

Example tracking note:

Website Project Invoice Tracking:
- Deposit (30%): INV-1001 - $3,000 - Paid 9/25
- Follow-up (40%): INV-1002 - $4,000 - Sent 10/20, Due 11/4
- Final (30%): Not yet created - Due on launch

Status: 30% paid, 40% pending, 30% remaining

Email Management

Choosing Email Options

✅ When to “Send Now”:

  • Standard invoicing workflow
  • Customer expects immediate invoice
  • Milestone just completed
  • Simple, straightforward invoices

✅ When to “Schedule Send”:

  • Invoice created early, send on specific date
  • Coordinating with other communications
  • Time zone considerations
  • Monthly billing cycles (send on 1st of month)

✅ When to “Send Later Manually”:

  • Requires approval before sending
  • Need to customize email message
  • Batch sending multiple invoices
  • Uncertainty about customer readiness

Email Timing Best Practices

✅ Optimal Send Times:

  • Weekdays: Tuesday-Thursday (highest open rates)
  • Time: 9 AM - 11 AM or 2 PM - 4 PM
  • Avoid: Mondays (inbox overload), Fridays (end-of-week rush)
  • Avoid: Weekends, late night, holidays

✅ For Scheduled Invoices:

  • Schedule for customer’s business hours
  • Account for time zones
  • First business day of month for recurring
  • Shortly after milestone completion

Payment Tracking

Monitoring Invoice Status

✅ Regular Check-Ins:

  • Daily: Check newly created invoices (verify sent)
  • Weekly: Review all outstanding invoices
  • Bi-weekly: Follow up on approaching due dates
  • Monthly: Reconcile payments, review aging report

✅ Use QuickBooks Tools:

  • Accounts Receivable Aging report
  • Invoice list filtered by status
  • Customer balance reports
  • Payment reminders (automated)

Payment Follow-Up

✅ Proactive Communication:

Timeline:

  1. Invoice sent: Day 0 - Thank customer, confirm receipt
  2. Gentle reminder: 3 days before due date - Friendly reminder
  3. Due date: Day of - Professional reminder payment is due
  4. Overdue follow-up: 3 days after - First overdue notice
  5. Escalation: 7-14 days after - More serious communication

Communication tone:

  • Days 0-3: Friendly, helpful
  • Due date: Professional, factual
  • 1-7 days overdue: Firm but polite
  • 7+ days overdue: Escalate to management

Recording Payments

✅ Prompt Payment Recording:

  • Record payments in QuickBooks same day received
  • Match payment to correct invoice(s)
  • Note payment method
  • Apply partial payments correctly
  • Update deal stage in HubSpot after payment

Team Collaboration

Training Team Members

✅ Onboarding New Users:

  • Provide access to this documentation
  • Walk through first invoice creation together
  • Explain company-specific policies (tax codes, payment terms)
  • Set up Sandbox for practice (if available)
  • Shadow experienced user for 1-2 invoices

✅ Ongoing Training:

  • Share tips when new features added
  • Review common mistakes and how to avoid
  • Hold monthly Q&A sessions
  • Document company-specific workflows

Setting Standards

✅ Establish Team Conventions:

  • Memo format: “[Project Name] - [Invoice Type/Milestone]”
  • Email timing: Send during business hours
  • Payment terms: Standard terms by customer type
  • Follow-up process: Who follows up, when, how
  • Deal stages: Update stages based on invoicing status

Example memo standard:

Format: [Project Name] - [Invoice Type] - [Description]
Examples:
- "Website Redesign - Deposit (30%)"
- "Q4 Consulting - Final Invoice"
- "Mobile App - Follow-up: Design Approved (40%)"

Communication

✅ Keep Team Informed:

  • Note invoice creation in deal timeline
  • @mention relevant team members
  • Update deal owner when invoice sent
  • Communicate payment status to account managers
  • Share overdue invoices with management

Error Prevention

Common Mistakes to Avoid

❌ Don’t:

  • Create invoices without verifying deal data
  • Send invoices to wrong email address
  • Use wrong tax code for customer type
  • Create duplicate invoices (check first)
  • Forget to save/send invoice
  • Skip reviewing invoice before submitting
  • Create final invoice before project complete

✅ Do:

  • Double-check all fields before submitting
  • Verify customer email is correct
  • Review calculated amounts
  • Check QuickBooks before creating potentially duplicate invoice
  • Wait for success confirmation
  • Verify invoice in QuickBooks after creation

Data Validation

✅ Before Creating Invoice:

  1. Deal amount > $0
  2. Contact associated with deal
  3. Contact email is valid format
  4. Deal stage is appropriate
  5. Payment structure is defined

✅ During Invoice Creation:

  1. Invoice type matches intent (Deposit/Follow-up/Final)
  2. Percentage calculates correct amount
  3. Customer is correct contact
  4. Tax code is appropriate for this sale
  5. Payment terms match agreement
  6. Email option is intentional choice

Workflow Optimization

Streamlining Invoice Creation

✅ Use Default Settings:

  • Configure default tax code for most common scenario
  • Set default product for primary service
  • Reduces clicks per invoice
  • Ensures consistency

✅ Batch Similar Invoices:

  • Create all monthly recurring invoices together
  • Schedule send for consistent delivery time
  • Use similar memo formats
  • Review and send in one session

✅ Template Approaches:

  • For recurring customers: Use same terms, tax, product
  • For project types: Define standard payment structures
  • For industries: Document common tax treatments

Time-Saving Tips

✅ Efficiency Techniques:

  • Keyboard shortcuts: Learn HubSpot navigation shortcuts
  • Open multiple tabs: QuickBooks in one tab, HubSpot in another
  • Batch processing: Create multiple invoices in one sitting
  • Calendar blocking: Dedicated “invoicing time” each week
  • Checklists: Use pre-invoice checklist to catch errors

Reporting and Analysis

Regular Reviews

✅ Weekly Reviews:

  • Outstanding invoices aging
  • Recent invoice creations
  • Payment collections
  • Overdue follow-up needed

✅ Monthly Reviews:

  • Total invoiced vs. total paid
  • Average days to payment
  • Invoice creation volume
  • Customer payment patterns

✅ Quarterly Reviews:

  • Overall invoicing efficiency
  • Common errors and how to prevent
  • Team performance and training needs
  • Process improvements needed

Key Metrics to Track

Invoice Metrics:

  • Total invoiced (monthly, quarterly, annual)
  • Number of invoices created
  • Average invoice amount
  • Percentage of invoices paid on time

Payment Metrics:

  • Days Sales Outstanding (DSO)
  • Aging buckets (0-30, 31-60, 61-90, 90+ days)
  • Collection rate
  • Write-offs / bad debt

Efficiency Metrics:

  • Time to create invoice
  • Error rate (invoices needing correction)
  • First-time email send success rate
  • Team productivity

Industry-Specific Best Practices

Service-Based Businesses

✅ Recommendations:

  • Invoice upon service completion (or milestone)
  • Use “Non-Taxable” for most services (verify with accountant)
  • Payment terms: Net 30 or Due on receipt
  • Detailed memos explaining services rendered
  • Follow up promptly (service businesses have higher DSO)

Product-Based Businesses

✅ Recommendations:

  • Invoice upon shipment or delivery
  • Apply appropriate sales tax
  • Payment terms: Net 15 or Net 30
  • Include product details in line items
  • Track invoice against shipping/delivery dates

Project-Based Businesses

✅ Recommendations:

  • Use multi-step invoicing (Deposit/Milestones/Final)
  • Define clear milestones in contract
  • Invoice within 1-2 days of milestone completion
  • Detailed memos for each milestone
  • Hold final payment until acceptance/approval

Frequently Asked Questions

What’s the ideal invoice volume per user?

Varies by business. Track average time per invoice and ensure users have time to do quality work. If rushed, increase staffing or automate more.

Should I use scheduled sends for all invoices?

No. Use scheduled sends when timing matters (e.g., monthly billing). For immediate needs, use “Send now”.

How quickly should I follow up on overdue invoices?

Within 3 days of due date. Earlier follow-up for large amounts.

What if my team makes frequent mistakes?

Increase training, implement checklists, add peer review step before sending.

How do I handle customers who consistently pay late?

Shorten payment terms, require deposits, charge late fees, or reconsider customer relationship.

Next Steps

Implement Best Practices

  1. Review your current workflow against these recommendations
  2. Identify areas for improvement
  3. Implement 2-3 key practices this week
  4. Train team on new standards
  5. Measure results and iterate

Continue Learning

  1. Features Overview - Explore all integration features
  2. Troubleshooting - Solve common issues
  3. FAQ - Quick answers to common questions

Additional Resources

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