How to Cancel an Invoice in QuickBooks

To cancel an invoice in QuickBooks, first locate the invoice in Sales → Invoices (Online) or Customer Center (Desktop). Then, void the invoice to reduce its amount to $0 while keeping a record for accounting purposes. QuickBooks allows you to maintain a clear paper trail, update accounts receivable, and notify customers if needed. 

DepositFix integrates with QuickBooks and automates invoice cancellations, syncs changes, and helps maintain accurate records across multiple invoices, saving time and reducing errors for service-based businesses.

Locate the Invoice

QuickBooks Online:

1. Log in to QuickBooks Online.
2. Go to Sales → Invoices.
3. Find the invoice you want to cancel. You can search by invoice number, customer, or date.
4. Click on the invoice to open it.

QuickBooks Desktop:

1. Open QuickBooks Desktop.
2. Navigate to Customers → Customer Center.
3. Find the customer and locate the invoice to cancel.
4. Double-click the invoice to open it.

Cancel or Void the Invoice

• QuickBooks Online:
  
  1. Open the invoice.
  2. Click More → Void.
  3. Confirm and select Yes.
  4. QuickBooks will mark the invoice as voided, keeping a record for accounting purposes but setting the amount to $0.
     
• QuickBooks Desktop:
  
  1. Open the invoice.
  2. Click Edit → Void Invoice.
  3. Confirm the action.
  4. The invoice will show as voided, preserving the record for your financial statements.

Note: Voiding is preferable to deleting for accounting accuracy because it maintains a paper trail.

Notify Your Customer (Optional but Recommended)

• Send a short email or message explaining that the invoice was canceled or voided.
• Include any corrected invoice if necessary.
• Clear communication avoids confusion and maintains professionalism.

Example:

"Dear [Customer Name], the invoice #[Invoice Number] has been canceled due to [reason]. Please refer to the updated invoice attached."

Review Accounting Records

• Ensure that the canceled invoice reflects $0 in your accounts receivable.
• Check reports such as A/R Aging to confirm accuracy.
• Keep a note of the cancellation reason for bookkeeping transparency.

Bonus: Simplify Invoice Cancellation with DepositFix

Integrating DepositFix with QuickBooks allows you to:

• Automatically sync voided invoices to QuickBooks.
• Maintain accurate records without manual entry.
• Update clients about invoice status automatically.
• Reduce errors when managing multiple invoices for contractors or service-based businesses.