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How invoicing works after switching from QuickBooks Self-Employed or Sole Trader

by Intuit•1• Updated 2 weeks ago

Learn how invoicing changes in your new workspace and how to correctly record payments to keep your books accurate.

This article is for customers who have switched from Self-Employed or Sole Trader to QuickBooks Online or Sole Trader Plus.

Why invoicing feels different

In QuickBooks Self-Employed or Sole Trader, sending an invoice was mainly a way to request payment. Your reports were updated once the payment appeared in your bank.

In QuickBooks Online and Sole Trader Plus, creating an invoice immediately records the income in your accounts. This is known as accrual accounting.

That means:

  • Your Profit and Loss report updates when you create the invoice
  • You can see who owes you money using the Accounts Receivable or Aged Receivables report
  • Income is tracked separately from the payment itself

While this may feel new, it gives you a clearer view of what you’ve earned and what is still outstanding.


Close the loop: Match invoice payments

The most important change to understand is how payments are recorded in your new workspace. When a customer pays an invoice you’ve sent, you must match the bank transaction to that invoice to "close the loop."

Don't worry about the past—any invoices that were already marked as Paid before you moved will stay that way. You do not need to go back and match historical payments. You only need to use the Match feature for:

  • Invoices that were Open or Draft when you migrated.
  • Any new invoices you create in your new platform.

A common mistake for new users is selecting Add when a payment appears in the bank feed. To keep your books accurate, always look for the match:

  1. The scenario: You send a new invoice for ÂŁ100.
  2. The Bank feed: Later, ÂŁ100 appears in your bank transactions.
  3. The action: If you select Add, QuickBooks records a second ÂŁ100 of income. This would show ÂŁ200 in total income instead of ÂŁ100.

The solution: Always look for the green Match notification. Selecting Match tells QuickBooks: "This is the payment for the invoice I already sent," which keeps your income records perfect.


How to record a customer payment correctly

  1. Create and send your invoice as usual.
  2. When the payment appears in Bank transactions, open the entry.
  3. If QuickBooks finds a matching invoice, the row will appear in green and show “1 match found”.
  4. Select Match.

By selecting Match, you’re confirming that the bank payment relates to the existing invoice. QuickBooks will then mark the invoice as Paid. This keeps your records accurate and prevents duplicate income.

Quick Tip: If you aren't sure whether to select Add or Match, always check for an existing invoice first. Choosing Match ensures your reports, VAT returns, and Self Assessment figures stay accurate.

Personalise your invoices

You can customise your invoices to suit your business.

  • VAT compliance: If you’re VAT registered, QuickBooks automatically calculates VAT and tracks it in your VAT control account.
  • Custom branding: Go to Settings âš™, then Custom form styles to upload your logo and adjust colours.

Learn how to customise invoices in QuickBooks Online.


At a glance: What’s changed?

Self-Employed / Sole TraderQuickBooks Online / Sole Trader Plus
Status trackingUnpaid or PaidDraft, Sent, Overdue, or Paid
Accounting impactRecorded when cash is receivedRecorded as soon as invoice is sent
The Bank FeedYou categorise money as IncomeYou Match the money to the Invoice
ReportingSimple list of invoicesDetailed "Aged Receivables" (Who owes you and for how long)

More help

Still have questions? Book a free 1:1 onboarding session with a product expert to walk through your specific setup.

QuickBooks Online EssentialsQuickBooks Online Simple StartQuickBooks Self-Employed