How to Set Up Recurring Payments in QuickBooks Online

To set up recurring payments in QuickBooks Online, create a recurring sales receipt template that charges your customer automatically. This process starts in the Recurring Transactions menu, where you select the type of payment, enter customer details, and define the billing interval.

Open the Recurring Transactions Menu

1. Log in to QuickBooks Online.
2. From the left-hand navigation bar, select Settings (⚙️).
3. Under Lists, click Recurring Transactions.
4. Choose New to start creating a template.

This menu is where all recurring invoices, sales receipts, and bills are stored and managed.

Choose the Transaction Type

QuickBooks will ask you what type of recurring transaction you want to create. Common options include:

• Invoice – used if you’re billing a customer and they will pay later.
• Sales Receipt – used if you charge customers automatically (e.g., using their saved card or ACH).

For recurring payments, select Sales Receipt, as this allows QuickBooks to automatically process the payment when due.

Customize the Template Type

You’ll be prompted to select a Template Type:

• Scheduled – runs automatically on a set schedule (best for recurring payments).
• Reminder – prompts you to send the transaction manually.
• Unscheduled – stores the template for future use.

For recurring payments, always choose Scheduled.

Fill in Customer and Payment Details

1. Enter the Customer Name.
2. In the Payment Method, select either:
   
   • Bank Transfer (ACH) – lower processing fees.
   • Credit Card – faster processing, but higher fees.
3. Check the option Automatically Send Emails if you want customers to receive a copy of each transaction.
4. Add Product/Service, Rate, and Quantity.

Example:

Set the Interval and Start Date

You’ll now define the payment schedule. Options include:

• Daily, Weekly, Monthly, or Yearly.
• Day of the month (e.g., the 1st or 15th).
• Number of occurrences (e.g., end after 12 payments).

For example:

• A gym might set a recurring monthly payment on the 1st.
• A contractor offering maintenance could set quarterly billing.

Save and Activate the Recurring Payment

• Review all details carefully.
• Click Save Template.
• QuickBooks will now automatically process the payment on schedule and record the transaction in your books.

Monitor and Manage Recurring Payments

To keep track of recurring payments:

• Go back to Settings > Recurring Transactions.
• You’ll see a list of all templates, their frequency, and next payment date.
• Edit templates anytime if rates, services, or payment methods change.

Example Scenario

Imagine you run a cleaning service and bill a client $200 every month for regular cleaning. Instead of manually creating invoices, you:

• Create a recurring Sales Receipt for $200.
• Set it to run monthly on the 5th.
• Save your client’s ACH or credit card details.

QuickBooks will now automatically charge the client and send both you and the client a confirmation.

Bonus Tip: Automate Recurring Payments with DepositFix + QuickBooks Integration

If you want more flexibility, DepositFix integrates with QuickBooks to make recurring billing seamless. With DepositFix, you can:

• Offer credit card and ACH recurring payments directly to customers.
• Sync payments automatically into QuickBooks without manual entry.
• Customize payment schedules beyond QuickBooks’ built-in limits.
• Give customers a secure portal to update payment details.

This saves time and reduces failed payments, keeping cash flow steady.