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3 Ways to Receive Payments in QuickBooks Online

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Got customer payments coming in? QuickBooks Online has multiple ways to accept and record them.

One of the biggest challenges small businesses face is managing a steady cash flow. Keeping income ahead of expenses is a constant balancing act. QuickBooks Online can help. With easy-to-use forms and a convenient mobile app, it helps you track and deposit incoming payments with ease.

Do you ever receive instant payments for certain products or services? Ever need to record a sale on the go—both for your records and your customer’s? Or maybe you send out invoices and want to ensure payments are accurately logged once they come in. QuickBooks Online has you covered in all these scenarios. Plus, it offers automation tools that speed up the payment process—so you can get paid faster and focus on growing your business.

Let Customers Pay Online

If your business sends invoices for products or services, QuickBooks Online makes it easy to record customer payments. While you can manually enter payments, there’s a faster, more efficient option: QuickBooks Payments. This built-in merchant service lets you accept credit card and bank payments electronically—helping you get paid quicker and streamlining your cash flow.

Once QuickBooks Payments is set up in QuickBooks Online (contact us if you need help), your invoices will include integrated payment options for credit cards and electronic checks. Each invoice will feature a payment button, allowing customers to easily enter their payment information. You’ll be able to track when an invoice is viewed, paid, and deposited. Simply open your list of invoices and click on one to view its details. A timeline panel will slide out from the right side, showing the invoice’s history and status. Plus, you can opt to receive notifications for invoice activity.

If you prefer to record payments manually, find the unpaid invoice in your list and click the Receive Payment link at the end of the row. This opens the Receive Payment screen, where you can fill in any missing details and save. You can also find the same link on the invoice screen itself or from the Invoices page (SalesInvoices).

You can receive payments manually in QuickBooks Online from an invoice itself or from the Invoices page.

There’s no cost for setting up a pay-as-you-go account in QuickBooks Payments. There are only per-transaction fees:

●     ACH bank payments are 1%.

●     It’s 3.5% if the payment comes in through an invoice (Apple Pay, Google Pay, credit cards, etc.) or if the payments are keyed in. 

●     If you swipe a card, you’ll pay 2.4%

There’s also a $0.30 fee per transaction. Transaction fees are slightly lower if you pay $20 per month. Payments that come in before 3 p.m. PT should be in your account the next business day. 

Accepting Payments Through GoPayment

To take payments while you’re on the road, you’ll need a free mobile card reader from Intuit that connects to your smartphone. It supports tap, chip, and digital wallet payments. You can also manually enter card details (see above rates). To process transactions, you’ll need to download the GoPayment app, available for iOS and Android. The app lets you add product names, prices, and images to make checkout faster and easier. Multiple layers of security are in place to help protect your data during mobile transactions.

Receiving Instant Payments

Sometimes, you’ll receive payment right after delivering a product or service. In these cases, QuickBooks Online allows you to create and provide a sales receipt on the spot. Just click +New in the upper left corner, then select Sales Receipt in the Customers section. The form that opens will look similar to an invoice or estimate. Choose the customer in the upper left corner, and fill out the remaining details as you normally would. When you’re finished, click Save and send to email the receipt. You’ll have the option to preview it before sending and to print it.

The Undeposited Funds Account

The Undeposited Funds account in the QuickBooks Online Chart of Accounts

If your customer paid you on the spot with a credit card, that payment would be processed in your QuickBooks Payments merchant center. But what about a physical check? QuickBooks Online defaults to the Undeposited Funds account for sales transactions. You can change this, but we don’t recommend it. This account temporarily holds payments—typically cash and checks—that haven’t yet been deposited into your bank. 

It’s a good idea to review this account regularly to ensure you’re not leaving funds languishing. Hover your mouse over the Transactions link in the toolbar and click Chart of Accounts. Scroll down until you find it, as pictured above. To combine the transactions in the Undeposited Funds account to make a bank deposit, click +New in the upper left corner and then click Bank deposit under Other. Make sure the Account in the upper left corner is set to the account where you want to deposit the funds. Click the box in front of each check you want to deposit (or Select all), then Save.

To see your deposit information, click Reports in the toolbar, then  click Deposit Detail under Sales and Customers. You’ll have to list the deposits individually on your physical deposit slip. Make sure that the slip matches what you see in QuickBooks Online. 

If you need help or have questions, feel free to contact us to schedule a consultation. While the process of receiving payments isn’t overly complicated, it’s essential to ensure every payment is recorded accurately and deposited correctly into your bank accounts.

Business Tax Reduction 101: Smart Strategies to Keep More of What You Earn

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For every business owner, managing taxes is one of the most important parts of running a successful operation. Overpaying taxes can eat into profits, while smart planning can significantly improve your bottom line. The good news? With the right strategies, you can reduce your business tax liability legally and effectively.

This guide breaks down the basics of business tax reduction—what it is, why it matters, and how to do it.

Why Business Tax Reduction Matters
Paying taxes is a non-negotiable part of doing business, but how much you pay is often within your control. By leveraging deductions, credits, and smart planning, you can:

  • Improve cash flow
  • Boost profitability
  • Reinvest more into your business
  • Avoid costly penalties and audits

The key is understanding your options and taking a proactive approach throughout the year—not just during tax season.

Top Strategies for Reducing Business Taxes

1. Maximize Business Deductions
The IRS allows you to deduct “ordinary and necessary” expenses related to running your business. Some common deductions include:

  • Office rent or home office expenses
  • Business travel and meals (50% deductible)
  • Equipment and software
  • Marketing and advertising
  • Professional services (legal, accounting, consultants)
  • Employee wages and benefits

Keep detailed records and receipts to support your deductions in case of an audit.

2. Leverage Section 179 and Bonus Depreciation
If you purchase equipment or vehicles for your business, you can often deduct the full cost in the year of purchase through Section 179 or bonus depreciation. These incentives can provide huge tax savings, especially for capital-intensive businesses.

3. Hire Strategically
Hiring employees or independent contractors may qualify you for tax credits and deductions. The Work Opportunity Tax Credit (WOTC), for example, rewards businesses that hire veterans, ex-felons, or long-term unemployed workers.

Also, offering tax-advantaged benefits like retirement plans, health insurance, or commuter benefits can reduce your payroll tax burden.

4. Contribute to a Retirement Plan
Setting up a retirement plan—like a SEP IRA, SIMPLE IRA, or Solo 401(k)—not only helps you and your employees save for the future, but also reduces your taxable income. Employer contributions are typically tax-deductible.

5. Choose the Right Business Structure
The way your business is structured (sole proprietorship, LLC, S-corp, C-corp, partnership) can have a major impact on your tax bill. For example:

  • S-corporations allow profits (and losses) to pass through to the owner’s personal tax return, avoiding double taxation.
  • LLCs offer flexibility—you can elect how you want to be taxed.
  • C-corporations may benefit from a flat corporate tax rate, but may also be subject to double taxation unless handled carefully.

Work with a tax professional to determine the best structure for your business.

6. Defer Income and Accelerate Expenses
If your business operates on a cash basis, you can defer income (delay invoices or payments) to the next tax year and accelerate expenses (prepay for goods or services) in the current year to reduce your taxable income.

7. Take Advantage of Tax Credits
Credits directly reduce your tax liability dollar for dollar. Some examples include:

  • R&D Tax Credit: For businesses investing in innovation, technology, or product development.
  • Energy Efficiency Credits: For eco-friendly building upgrades or equipment.
  • Small Business Health Care Tax Credit: If you offer health insurance and meet eligibility criteria.

Tax credits often require documentation and qualifications, so consult a tax advisor before applying.

Common Mistakes to Avoid

  • Failing to keep accurate and updated financial records
  • Mixing personal and business expenses
  • Ignoring quarterly estimated tax payments
  • Waiting until year-end to plan taxes
  • Overlooking tax credits and deductions you’re eligible for

Final Thoughts
Reducing your business taxes doesn’t mean cutting corners—it means planning smartly and using the tax code to your advantage. Whether you’re a solo entrepreneur or run a growing enterprise, these strategies can help you legally reduce your tax burden and improve your financial health.

Partner with a qualified accountant or tax advisor to tailor a tax reduction plan that fits your specific business model. With the right support, you can keep more of what you earn—and reinvest it into the success of your business.

Understanding Depreciation Deductions for Business Real Estate

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Depreciation is one of the most powerful tax advantages available to real estate owners. If you own commercial property or use real estate in your business, depreciation deductions can significantly reduce your taxable income over time. However, many business owners miss out on maximizing these benefits due to a lack of understanding.

Here’s a clear and practical guide to how depreciation works for business real estate and how you can use it to your financial advantage.

What Is Real Estate Depreciation?
Depreciation is the process of deducting the cost of a long-term asset over its useful life. For real estate, this means that instead of writing off the full cost of a building in the year it was purchased, you gradually deduct portions of its value each year.

Importantly, land itself does not depreciate—only the building and certain improvements do.

Depreciation Basics for Business Property

  • Depreciable assets: Buildings, structural components (roof, HVAC, plumbing), and certain improvements
  • Non-depreciable assets: Land, inventory, and personal residences
  • Depreciation method: The IRS requires the Modified Accelerated Cost Recovery System (MACRS)
  • Depreciation period:
    • Residential rental property: 27.5 years
    • Commercial property: 39 years

How to Calculate Depreciation
Let’s say you buy a commercial building for $1 million, with land valued at $200,000. Only the building portion ($800,000) is depreciable.

Annual depreciation deduction = $800,000 ÷ 39 = $20,513 per year

That’s over $20,000 per year in tax deductions—without spending another dime.

Requirements for Depreciation

To claim depreciation on a property:

  1. You must own the property (not lease it).
  2. You must use it for business or income-producing purposes.
  3. It must have a determinable useful life (expected to last more than a year).
  4. The property must be placed in service (available for use) before you can begin depreciation.

Improvements vs. Repairs

  • Repairs (e.g., fixing a leak) are usually fully deductible in the year incurred.
  • Improvements (e.g., replacing the roof or adding a new HVAC system) must be capitalized and depreciated over time.

Bonus Depreciation and Section 179

Although buildings themselves must be depreciated over decades, certain components or improvements may qualify for bonus depreciation or Section 179 expensing, allowing you to deduct more upfront.

  • Bonus Depreciation: Temporarily allows 100% immediate expensing of qualified improvements (dropping to 80% in 2023 and phasing out by 2027 under current law).
  • Section 179: Allows immediate expensing of certain improvements, such as roofs, HVACs, and alarm systems, up to a limit ($1.22 million in 2024, subject to phaseouts).

These tools can accelerate deductions and improve cash flow.

Cost Segregation: Supercharge Your Depreciation

A cost segregation study breaks your building into components (e.g., flooring, lighting, fixtures) that can be depreciated faster—over 5, 7, or 15 years instead of 39.

While the study involves a cost (usually performed by specialists), the tax savings can be substantial—especially for high-value properties.

What Happens When You Sell? Depreciation Recapture

Depreciation lowers your taxable income, but it can also increase your tax bill when you sell.

  • Depreciation recapture: When you sell the property, the IRS may “recapture” depreciation and tax it at a maximum rate of 25%.
  • That doesn’t mean depreciation isn’t worth it—far from it—but you should plan ahead with your accountant or tax advisor to manage the exit strategy.

Documentation and Compliance

To stay compliant:

  • Keep detailed records of the purchase price, improvement costs, and depreciation schedules.
  • Use IRS Form 4562 to report depreciation each year.
  • Consult a tax professional to ensure accuracy and to explore strategies like cost segregation and bonus depreciation.

Final Thoughts
Depreciation deductions can significantly lower your tax liability and free up cash for reinvestment in your business. By understanding how to apply these rules to your commercial real estate, you can build wealth more efficiently and strategically.

Remember: Real estate doesn’t just appreciate in value—it also helps you depreciate your tax burden.

How Fraud and Scams Affect Small Businesses—and How to Move Forward

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Fraud and scams are more than just occasional risks for small businesses—they’re a growing threat that can damage finances, reputation, and even long-term viability. From fake invoices and phishing emails to employee theft and cyberattacks, the impact can be devastating.

Small businesses often lack the resources and safeguards that larger organizations use to detect and prevent fraud. That makes them attractive targets for scammers—and particularly vulnerable to lasting harm.

In this article, we’ll explore how fraud and scams affect small businesses, common warning signs, and what steps owners can take to recover and protect their future.

The Real Cost of Fraud for Small Businesses
Fraud can take many forms, but the consequences often look the same:

  • Financial loss: Fraud can wipe out bank accounts, damage cash flow, and derail budgets.
  • Reputational damage: Customers may lose trust if data is compromised or if fraud becomes public.
  • Legal and compliance risks: Businesses may be liable for data breaches or face lawsuits from affected parties.
  • Operational disruption: Time, energy, and resources are diverted from growth to crisis management.
  • Emotional toll: Owners and staff may experience stress, mistrust, and anxiety after being targeted.

According to the Association of Certified Fraud Examiners (ACFE), small businesses lose an average of 5% of their annual revenue to fraud, and nearly half of them don’t recover fully.

Common Types of Fraud and Scams Targeting Small Businesses

  • Email and phishing scams: Fraudsters impersonate vendors, customers, or executives to trick employees into sending money or sharing sensitive information.
  • Fake invoices: Scammers send legitimate-looking bills for products or services that were never ordered.
  • Payroll fraud: Employees falsify hours, inflate expense reports, or issue payments to fake vendors.
  • Credit card or payment fraud: Cybercriminals use stolen card details to make fraudulent purchases or steal payment data.
  • Business identity theft: Scammers use a company’s information to open fake credit lines or apply for loans.
  • Vendor scams: Fraudsters pose as suppliers, especially during procurement, and redirect payments to their own accounts.


How to Spot the Warning Signs

  • Sudden unexplained financial shortfalls
  • Duplicate or unusual payments to the same vendor
  • Missing inventory or supplies
  • Vendors or customers claiming unpaid balances despite records
  • Employees reluctant to take vacations or overly protective of their roles (a red flag for internal fraud)
  • Unexpected emails or calls requesting sensitive information or urgent wire transfers

What to Do If You’ve Been Targeted

1. Act quickly: Time is critical. Notify your bank, credit card companies, and law enforcement as soon as you suspect fraud.

2. Document everything: Keep a detailed record of all communications, transactions, and losses related to the incident.

3. Inform stakeholders: If customer or vendor data was compromised, notify them promptly and transparently.

4. Report the fraud:

  • To your bank or payment processor
  • To the FBI’s Internet Crime Complaint Center (IC3)
  • To your local police department
  • To the Federal Trade Commission (FTC)

5. Review your insurance: Check if your business insurance includes fraud or cybercrime coverage—and file a claim if applicable.

6. Get professional help: Consult a lawyer or forensic accountant to assess the damage and support recovery efforts.

How to Move Forward and Prevent Future Fraud

1. Strengthen internal controls

  • Separate duties (e.g., the person who cuts checks shouldn’t reconcile the bank account)
  • Require dual approval for large payments
  • Conduct regular audits, even in small teams

2. Train employees
Teach staff how to recognize phishing emails, invoice scams, and fraudulent behavior. Make fraud awareness part of onboarding and ongoing training.

3. Use secure technology

  • Use reputable accounting and payroll software
  • Enable two-factor authentication
  • Regularly update software and back up data

4. Vet vendors and partners
Always verify new vendors before sending payments. Confirm any changes to payment details with a phone call to a known contact.

5. Monitor financial activity regularly
Review your financial statements and bank activity often. The sooner you catch something suspicious, the better your chances of minimizing damage.

Final Thoughts
Fraud and scams are a painful reality for many small businesses—but they don’t have to define your future. Taking swift action to recover and adopting strong preventive practices can help rebuild trust, restore stability, and make your business more resilient than ever.

The key takeaway? Stay vigilant, educate your team, and treat fraud prevention as an essential part of your business strategy—not just an afterthought. In today’s fast-moving digital world, protecting your business is just as important as growing it.

How to Set Up a Bookkeeping Cycle in QuickBooks Online

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Do you have a regular schedule you follow with your QuickBooks Online work? It can be a good strategy.

Bookkeeping is cyclical. You tend to do the same things over and over, which may get to be a bit of a drag for you. QuickBooks Online can automate some processes, and it certainly helps minimize duplicate data entry, but you’ll undoubtedly find yourself growing weary of repetitive tasks.

We can’t help you avoid this drudgery completely, but we’d like to suggest a new, more organized way to attack your accounting tasks in 2025. It could be especially helpful if you’re a new QuickBooks Online user and don’t have a routine established yet. But even long-time users might find this routine helpful. It can keep things from slipping through the cracks and simply make you more productive and confident that you’re addressing all of your accounting issues.

Give it a try and see what you think.

What Should You Do Every Day?

Even if you don’t have expenses to enter or invoices to process, it’s a good idea to log into QuickBooks Online every day. If you’ve connected your online bank and credit cards to the site (which you absolutely should), there will probably be transactions to go over. So after you’ve taken a look at your Dashboard (especially your Tasks), hover your mouse over Transactions in the toolbar and click Bank transactions.

Click Update in the upper right to make sure you’re seeing the most recent transactions. If you’re doing this every day, it shouldn’t take long to go over the income and expenses that have been imported since you last logged in.

You should be looking at newly imported transactions daily and completing the fields provided as comprehensively as possible.

If you don’t know what Match or Record as transfer mean, we should schedule a session to go over transaction management in QuickBooks Online.

Every Week

You need to be monitoring your accounts receivable and payables on a weekly basis – at minimum. There are two ways to do this. You can:

Run reports.

• Click Reports in the toolbar and scroll down first to Who owes you. Run Accounts receivable aging summary. QuickBooks will display past-due transactions in several columns (Current, 1-30 days, 31-60 days, 61-90 days, and 91 and over). If you’re keeping up with your receivables, you shouldn’t be seeing numbers in most of the columns, unless you’re in a known collections process.

• Scroll down to What you owe and run Accounts payable aging summary. This works like the aging receivables report. Again, you shouldn’t be seeing much activity here unless you’re in a payment dispute with a vendor.

• You can also run the Open Invoices report to quickly see the Due date and Open balance entries here. Ditto the Unpaid Bills report.

Consult the All sales page.

Hover your mouse over Sales in the toolbar and click All sales. The colored bars and numbers at the top of the page show you the status of your sales. Click the orange bar in the middle to see a list of overdue invoices. If there are any, you can set a Send reminder by clicking the corresponding down arrow in the Action column. While you’re there, look at estimates and unbilled income and take any action needed.

Every Two Weeks (or more often, depending on product volume)

If you sell products and track inventory in QuickBooks Online, you should keep a close eye on your stock to see if you need to:

• Reorder,

• Bring in a larger supply because something is selling well, or,

• Discount or discontinue a product because it’s not selling.

Click Reports in the toolbar and run Product/Service List under Sales and customers and look at the Quantity on hand column.

Every Month

Reconcile your accounts (Transactions | Reconcile).

It’s really, really important that you reconcile your accounts every month. We can help you with this.

No one likes to do this, but it’s way easier to do regular reconciliations than it is to have to go back several months to track down a problem. If you’ve never done this in QuickBooks Online, it works similarly to how you used to reconcile your accounts by comparing a bank statement and your paper checkbook register. Only you’re comparing your bank or credit card statements to your accounts in QuickBooks Online. Before you start, make sure you’ve matched and categorized all of your downloaded transactions.

Run a Profit and Loss report for the last month.

Click Reports in the toolbar and click Profit and Loss under Business overview. Did you make a profit last month?

Every Quarter

If you’re planning to apply for a loan or looking for an investor, or if you just want a deeper understanding of how your business is doing, consider having us create and analyze standard financial reports for you, like the Balance Sheet and Statement of Cash Flows. You can run these yourself in QuickBooks Online, but it really takes an accountant’s eye to understand and interpret them.

If you decide that you want to work with us in any capacity, like helping you with reconciliation and/or modifying your Chart of Accounts, there’s another way we can help. If you ever have trouble categorizing an expense, select Uncategorized Expenses as the Category. If we’re meeting with you once a month, we can run a report on these and help you categorize them correctly.

How to Improve the Value of Your Business Before You Retire

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Retirement is a milestone many business owners dream about—but selling or transitioning your business isn’t just about handing over the keys. To ensure a profitable exit, it’s essential to increase your business’s value before you step away. Whether you’re planning to sell to a third party, transition to family, or install a management team, enhancing your business’s worth will make the process smoother and more lucrative.

Here’s a strategic roadmap to help you improve the value of your business before retirement:

1. Start With a Clear Exit Plan
The earlier you plan your exit, the better. Ideally, give yourself 3–5 years. Determine your goals: Do you want to maximize price? Maintain your legacy? Ensure job security for employees? The answers will influence the steps you take.
Action Step: Work with a financial advisor and business consultant to develop an exit strategy aligned with your personal and financial goals.

2. Get a Business Valuation
You can’t improve what you don’t measure. A formal business valuation gives you a realistic view of what your business is currently worth and what factors influence that number.
Action Step: Hire a valuation expert to identify key value drivers and areas for improvement.

3. Strengthen Financial Performance
Buyers look closely at profitability, cash flow, and financial records. Clean, organized, and transparent financials not only boost value but also inspire buyer confidence.
Action Step: Improve your profit margins, reduce debt, and eliminate unnecessary expenses. Implement sound financial reporting systems.

4. Systematize and Document Operations
A business that runs smoothly without its owner is far more attractive than one dependent on a single person. Systems create scalability and reduce perceived risk.
Action Step: Document key processes, create training manuals, and establish standard operating procedures (SOPs) across departments.

5. Build a Strong Management Team
A capable leadership team that can run the business in your absence adds significant value. It shows potential buyers that the business can thrive post-transition.
Action Step: Identify, train, and retain key personnel. Consider offering performance incentives or equity to keep them motivated and committed.

6. Diversify Your Customer Base
Over-reliance on a few clients can be a red flag. Buyers worry about what might happen if a major customer leaves.
Action Step: Expand your marketing efforts to attract new clients, and create a strategy to nurture and retain existing ones.

7. Protect Intellectual Property and Brand Assets
Your brand, trademarks, patents, customer lists, and proprietary systems are valuable assets. Protecting them can significantly increase your company’s appeal and value.
Action Step: Conduct an intellectual property audit and ensure all legal protections are in place.

8. Reduce Owner Dependency
If your name, face, or personal relationships are central to the business, it may be harder to sell. Buyers want a business, not a job.
Action Step: Gradually delegate responsibilities, and shift key relationships to other team members.

9. Address Legal and Compliance Issues
Unresolved legal issues or outdated licenses can derail a deal. Make sure your business is in full compliance.
Action Step: Review contracts, employee agreements, and regulatory filings with a legal advisor to ensure everything is current and enforceable.

10. Increase Recurring Revenue
Predictable, recurring income streams are incredibly attractive. They reduce risk and provide buyers with future cash flow certainty.
Action Step: Introduce or expand subscription models, service contracts, or maintenance agreements where possible.

Final Thought
Enhancing the value of your business before retirement isn’t just about a higher sale price—it’s about creating a legacy, protecting your life’s work, and setting up the next chapter for success. With careful planning and focused improvements, you can exit confidently and profitably, knowing you’ve set your business—and yourself—up for a bright future.