What does QuickBooks use to track billing and receivables?

QuickBooks uses invoices to track billing and receivables because they are formal requests for payment from customers that outline the details of a sale, including items or services provided, the amounts due, and terms of payment. When a business issues an invoice through QuickBooks, it records the sale in the accounts receivable, indicating that the business expects to receive payment from the customer. This system helps in managing cash flow as it not only tracks money owed but also reflects on the financial reports, providing insights into outstanding payments.

Invoices are a critical aspect of a business's accounting processes, ensuring that the collections from customers are properly documented and followed up on. They serve as essential records for both the seller and the buyer, aiding in financial accountability and transparency.

In contrast, while customer IDs can help identify individual clients, sales orders are typically used to track orders before they are invoiced, and payment records show money received rather than the bills sent out. Each of these serves a different purpose in a business's financial system.