Portia needs to create an invoice in QuickBooks. Which menu should she use? Expenses, Income, Reports, Sales.
The correct answer and explanation is:
Correct Answer: Sales
To create an invoice in QuickBooks, Portia should use the Sales menu.
Explanation (300 words):
Creating invoices is a key part of managing income in any business, and QuickBooks makes this process streamlined and intuitive. In QuickBooks Online, all customer-related transactions—like estimates, invoices, sales receipts, and payments—are organized under the Sales menu. This menu is specifically designed for tasks that involve selling products or services and collecting money from customers.
When Portia navigates to the Sales menu on the left-hand side of QuickBooks Online, she will find several tabs, including “Invoices,” “Customers,” “Products and Services,” and “All Sales.” To create a new invoice, she would click on the “Invoices” tab and then select “New Invoice.” This will open a form where she can enter customer details, product or service items, prices, due dates, and terms of payment.
Here’s why the other options are incorrect:
- Expenses: This menu is used for tracking money going out of the business, such as bills, vendor payments, and purchases. It’s not related to creating invoices, which are about receiving money.
- Income: While invoices do contribute to income, QuickBooks does not have a standalone “Income” menu. Income is tracked automatically through sales transactions, like invoices, but the management of these is done through the Sales menu.
- Reports: This menu provides financial statements and analytics, such as profit and loss statements, balance sheets, and cash flow reports. It is used for reviewing financial performance, not for creating transactions.
By using the Sales menu, Portia ensures that her invoices are accurately recorded and integrated into her company’s income records, customer balances, and overall financial reports. This also supports streamlined bookkeeping, tax preparation, and cash flow management.