How to Create a Customer in QuickBooks Online (QBO)

Managing customer information accurately is critical to efficient invoicing, payment tracking, and reporting. QuickBooks Online (QBO) offers a simple yet powerful way to create and manage customer profiles. Whether you’re running a small business or managing multiple clients, organizing your customer data within QBO ensures smoother transactions and professional bookkeeping.

This article walks you through the step-by-step process to create a customer in QBO, along with tips to maintain clean, compliant customer records.

Table of Contents

• Why Creating Customers in QuickBooks is Important

• Step-by-Step Guide to Creating a Customer in QuickBooks Online

  • Step 1: Log in to QuickBooks Online

  • Step 2: Navigate to the Customers Section

  • Step 3: Enter Customer Information

    • 1. Customer Name and Contact Details

    • 2. Billing and Shipping Addresses

    • 3. Payment and Billing Preferences

    • 4. Tax Information

    • 5. Opening Balance and Attachments

  • Step 4: Save the Customer Profile

Why Creating Customers in QuickBooks is Important

Adding customers in QBO helps businesses:

• Track sales, invoices, and payments for each customer

• Maintain a centralized customer database

• Generate detailed financial and customer reports

• Send customized invoices and reminders via email

• Ensure accurate accounting for receivables and tax audits

• Improve customer service and documentation

Step-by-Step Guide to Creating a Customer in QuickBooks Online

Step 1: Log in to QuickBooks Online

1. Go to https://quickbooks.intuit.com and click Sign In.

2. Enter your email/username and password, then access your company dashboard.

Step 2: Navigate to the Customers Section

1. In the left-hand navigation panel, click Sales.

2. Select Customers to view your existing customer list.

3. Click the New Customer or + New button (top right corner) to begin creating a new profile.

Step 3: Enter Customer Information

A detailed form will open. Fill in the following sections for your new customer.

1. Customer Name and Contact Details

• Display Name As: The name shown on invoices and reports.

• Company Name (optional): For business clients.

• Email Address: Essential if you plan to send invoices or payment reminders via email.

• Phone Number: Primary contact number.

• Mobile Number: Secondary contact, if applicable.

• Fax Number (optional): For customers using fax communication.

• Website (optional): Useful for business customers.

2. Billing and Shipping Addresses

• Billing Address: Required for invoicing and statements.

• Shipping Address: If different from billing, enter it separately.

• Checkbox: Same as Billing Address: Check this if both addresses are the same.
  You may also tag addresses by country and province for GST/VAT compliance.

3. Payment and Billing Preferences

• Terms: Select payment terms like Due on Receipt, Net 15, Net 30, or Custom Terms.

• Preferred Payment Method: Choose among Bank Transfer, Credit Card, Cash, Check, or leave blank.

• Preferred Delivery Method: Choose whether to Send Later (email) or Print Later for physical mailing.

4. Tax Information

• Taxable or Non-Taxable: Mark the customer as tax-exempt if applicable and include exemption reasons.

• Sales Tax Code: Assign the correct sales tax code based on the customer’s location and nature of business.

• Resale/Tax ID Number (optional): Useful for B2B clients claiming tax exemptions.

5. Opening Balance and Attachments

• Opening Balance: Enter any previous balance due as of a specific start date (if transitioning from another system).

• Attachments: Upload contracts, ID copies, agreements, or special terms (PDF, JPG, DOC formats supported).

Step 4: Save the Customer Profile

After reviewing the entered information:

• Click Save to finish the process and return to the customer list.

• Or click Save and New to immediately begin entering another customer.

QuickBooks will now track all transactions related to the newly created customer — including sales, payments, credit memos, and communication history.

Pro Tips:

• Keep customer data updated regularly to avoid delivery and billing errors.

• Use custom fields to track additional customer-specific information like loyalty codes or internal IDs.

• Link customer profiles to projects or sub-customers if managing job-based billing.