How do you mark an invoice as paid in QuickBooks Online?

To mark an invoice as paid in QuickBooks Online, you open the invoice and click on "Receive Payment." This action allows you to record the payment made by the customer against the specific invoice. When you do this, you can enter payment details such as the payment method, amount, and any additional notes. This not only updates the status of the invoice to reflect that it has been paid but also helps maintain accurate financial records in your accounting system.

Recording payments through this method ensures that your accounts receivable are accurately updated, reflecting the actual funds received. It also allows you to track which invoices have been paid and which are still outstanding, making it easier to manage your cash flow.

Marking an invoice as paid is crucial for maintaining the integrity of your financial reporting and ensuring that your income is accurately captured in your accounting records.