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3 Ways to Receive Payments in QuickBooks Online

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Subscription Billing on Laptop, Automate Recurring Payments for Business Success, Vector Flat IllustrationGot 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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Tax cut, corporate company or government strategy. Tiny man breaking word Tax with sword to reduce deductions burden and avoid loss of money profit and expenses return cartoon vector illustrationFor 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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A sign showing an downward arrow in front of a highrise condominium or apartment. Concept of decreasing or slumping condo prices and value or a real estate bust.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.

7 Smart Ways to Improve Your Business Credit Score

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A Memo stick with How to improve your credit score inscription on the calculator.Your business credit score is more than just a number—it’s a key that can unlock better financing options, lower insurance premiums, and stronger supplier relationships. Whether you’re just starting out or looking to expand, a healthy business credit profile can give your company a significant advantage.

If your score isn’t quite where you want it to be, don’t worry. Here are seven proven ways to improve your business credit score and set your company up for long-term success:

1. Establish Your Business Credit Profile
Before you can improve your score, you need to make sure it exists.

Action Steps:

  • Register your business as a legal entity (LLC, S-Corp, etc.).
  • Get an Employer Identification Number (EIN) from the IRS.
  • Open a business bank account in your company’s name.
  • Apply for a D-U-N-S Number from Dun & Bradstreet (a major business credit bureau).

These foundational steps help credit bureaus recognize your business as a separate, creditworthy entity.

2. Pay Your Bills On Time (or Early)
This is the single most important factor in your business credit score.

Why it matters: Late payments damage your score. On-time (or early) payments can improve it, especially with vendors that report to credit bureaus.

Tip: Set up automatic payments or calendar reminders to avoid missed due dates.

3. Work With Vendors That Report to Credit Bureaus
Not all vendors and suppliers report your payments. Make sure the ones you work with do.

What to do:

  • Ask suppliers if they report to bureaus like Dun & Bradstreet, Experian Business, or Equifax Business.
  • Try to establish trade credit lines (Net-30, Net-60 accounts) with these vendors.

Over time, positive payment history will help raise your score.

4. Monitor Your Business Credit Reports Regularly
Errors and outdated information can drag your score down.

Steps to take:

  • Request and review your business credit reports from Dun & Bradstreet, Experian, and Equifax.
  • Dispute any inaccuracies promptly.

Bonus: Monitoring your reports also protects you from fraud or identity theft.

5. Keep Your Credit Utilization Low
Just like with personal credit, maxing out your business lines can hurt your score.

Best practice: Aim to use less than 30% of your available credit. For example, if you have a $10,000 business credit line, try not to carry a balance higher than $3,000.

Tip: If your usage is high, ask for a credit line increase to improve your utilization ratio.

6. Avoid Frequent Credit Applications
Every time you apply for credit, it can trigger a “hard inquiry” on your report, which may lower your score.

Advice: Only apply for new business credit when necessary. Multiple applications in a short time may be seen as a sign of financial distress.

7. Build a Mix of Credit Accounts
Lenders like to see that your business can handle different types of credit responsibly.

Examples include:

  • Business credit cards
  • Lines of credit
  • Equipment financing
  • Vendor or supplier accounts

Having a variety of accounts, all in good standing, can strengthen your profile.

Final Thoughts
Improving your business credit score won’t happen overnight, but consistent, smart financial habits will pay off over time. Think of it as an investment in your company’s future—one that can open doors to funding, partnerships, and growth opportunities.

Start by checking your credit report, setting payment reminders, and working with vendors who report to the bureaus. Bit by bit, you’ll build a credit profile that reflects the true strength and potential of your business.

When Should You Sell an Investment?

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Business closeup of two hands exchanging dollars on grey background.Selling an investment can be more difficult than buying one for many investors. When you buy an investment, you obviously have high hopes for how well that investment will perform. Unfortunately, it’s unlikely that every investment will meet your expectations. In that situation, holding on to your investment essentially means that you are not putting that money to its best use. Here’s a brief look at some of the signs that may indicate it is time to sell.

Changes in Investment Value

Experienced investors often establish a specific price target for an investment at the time they buy it. They also establish just how much of a decline from their purchase price they are willing to accept. If the security hits one of these two numbers, they sell. You may benefit from doing something similar. Decide on a percentage gain that you want from a particular investment and sell when it hits your target. Likewise, determine how much of a decline in the price of a security you are willing to accept and sell when the price falls to that target number.

An Investment’s Underperformance

You may opt to buy a specific investment because you have certain expectations for that investment. For example, you may buy stock in a company that you believe has a technology that is superior to anything currently available and has enormous potential for future profits. Or, you may buy a mutual fund* with a track record of strong long-term returns that you are optimistic will continue.** Short-term fluctuations in price are normal in investing. However, if you own stock in a company that loses money year after year or own shares of a mutual fund that consistently underperforms its benchmark index, selling may be the wiser option.

A Shift in Your Risk Tolerance

Your ability to handle the potential for losing some or all of your money in an investment is known as your risk tolerance and influences the types of investments you buy. You may find that, at some point, the risk level of an investment you own no longer matches your risk tolerance. It could also happen that your risk tolerance changes when, for example, you move closer to retirement. You may choose to sell an investment so that the asset allocation you have is more in line with your current situation.***

You Identify a Need to Rebalance Your Portfolio

Your investment portfolio may become unbalanced over time as some asset classes outperform other asset classes. When it gets to the point when one asset type comprises a larger or smaller percentage of your portfolio than you intended when first devising a suitable asset allocation, then you may consider selling some investments to rebalance your portfolio.

Determining when the time has come to sell an investment can be a tough decision. Emotions, fear of missing out, and other factors can cloud your judgement. That’s why the input of an experienced, objective financial professional can be so helpful in making investment decisions.

*You should consider the fund’s investment objectives, charges, expenses, and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.

**Past performance does not guarantee future results.

***Asset allocation does not guarantee a profit or protect against loss.

Retirement Saving Tips While Running a Business

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Senior man, insurance and contract with financial advisor and retirement plan to sign. Document, pension deal and business analyst with male person and paperwork in office for signature of willRunning a business is demanding, but saving for retirement is equally important. Here are some practical tips for entrepreneurs to balance both.

1. Set up a Retirement Plan Early

Consider retirement plans like a SEP IRA, SIMPLE IRA, or Solo 401(k)** to benefit from tax deductions and higher contribution limits. Choose a plan that fits your business size and cash flow.

2. Automate Contributions

Automate your retirement contributions to ensure consistent saving, even when cash flow is tight. Starting small and increasing contributions over time is a great way to stay disciplined.

3. Diversify Your Investments

Don’t rely solely on your business for retirement. Invest in stocks, real estate, or other assets to reduce risk and build multiple income streams for retirement.

4. Prioritize Personal Savings

Set aside some profits for personal savings, including an emergency fund and a taxable brokerage account, to avoid dipping into your retirement fund during business downturns.

5. Plan for Business Succession

Develop a business succession or exit plan early. Whether selling, passing it to family, or appointing a successor, planning will help ensure your retirement is well-funded.

6. Maximize Tax Benefits

Take advantage of tax benefits like deductions on retirement contributions and catch-up contributions if you’re over 50.

7. Consult a Financial Advisor

Work with an advisor to optimize your savings, minimize taxes, and plan for long-term financial security.

Balancing business operations with retirement planning is possible. By setting up the right plan, automating savings, and diversifying your investments, you can secure both your business and your retirement. Start early and stay consistent for the best results.