Enabling Recurring Transactions in QuickBooks Online

In business accounting, certain transactions,  like monthly rent, software subscriptions, or retainer invoices,  occur on a regular schedule. Manually creating the same invoices, bills, or journal entries every month not only wastes time but also increases the risk of errors or missed entries.

QuickBooks Online simplifies this process with a powerful feature: Recurring Transactions.  This article offers a step-by-step, enabling, setting up, and managing recurring transactions in QuickBooks Online, including tips, examples and  automation options.

What Are Recurring Transactions?

Recurring transactions are pre-scheduled entries that are automatically created and recorded in QuickBooks at defined intervals (e.g., daily, weekly, monthly).

They are used for:

• Recurring invoices
• Regular bills or expenses
• Monthly journal entries
• Periodic transfers or payments

Rather than creating these manually each time, you can set them once and let QuickBooks handle the rest.

Benefits of Using Recurring Transactions

Enabling and using recurring transactions has several advantages:

• Saves time: Automates repetitive data entry tasks
• Reduces errors: Consistent formatting and values
• Improves cash flow: Ensures timely invoicing
• Boosts productivity: Frees up time for more strategic work
• Avoids missed payments: For rent, subscriptions, retainers, etc.

For subscription-based businesses or companies with fixed monthly costs, recurring transactions are invaluable.

Types of Recurring Transactions Supported

QuickBooks Online supports recurring transactions for:

• Invoices
• Expenses
• Bills
• Checks
• Journal Entries
• Sales Receipts
• Credit Card Charges
• Purchase Orders (only templates, not automatic entries)

Recurring transactions are not available for all types of entries (e.g., inventory adjustments, payroll entries via QuickBooks Payroll).

How to Enable Recurring Transactions

Recurring transactions are built-in and do not require separate activation in QuickBooks Online. However, to start using them:

Step-by-Step:

1. Log in to your QuickBooks Online account.
2. Navigate to the Gear icon (⚙️) > Recurring Transactions.
3. Click “New” to create your first recurring template.

If you don’t see the “Recurring Transactions” option, ensure you’re using a Plus, Essentials, or Advanced plan. Some features may not be available in the Simple Start plan.

How to Create a Recurring Transaction Template

Let’s walk through how to set up a recurring invoice as an example.

Step-by-Step: Create a Recurring Invoice

1. Go to Gear icon > Recurring Transactions > New.
2. Choose Transaction Type (e.g., Invoice) and click OK.
3. Fill out the template fields:
   • Template Name: Name for internal tracking.
   • Type: Choose one of the three (explained in next section).
   • Customer: Choose the customer to be invoiced.
   • Interval: Select how often this should recur (daily, weekly, monthly, etc.).
   • Start Date: When to start the recurrence.
   • End Date: Optional, leave blank for indefinite.
   • Terms: Set payment terms (Net 30, due on receipt, etc.).
   • Product/Service, Description, Rate, Quantity: Fill in as per your transaction.
4. Save and close.

That’s it,  QuickBooks will now handle this transaction automatically based on your settings.

Understanding the Recurring Template Types

When setting up a recurring transaction, QuickBooks offers three template types:

A. Scheduled

• Fully automatic: QuickBooks creates and records the transaction at each interval.
• Best for: Regular fixed payments like subscriptions, rent, or retainers.
• Payment can be auto-charged if using Sales Receipts and payment methods.

B. Reminder

• Sends a reminder at the scheduled interval.
• You must manually review and confirm the transaction.
• Best for: Variable transactions (e.g., fluctuating amounts or hours).

C. Unscheduled

• A saved template with no schedule.
• Used when you want to quickly recreate a transaction manually.
• Best for: Ad hoc entries that follow a specific format (e.g., monthly journals with edits).

Automating Payments with Recurring Transactions

If you’re invoicing a customer monthly and want to automatically charge their card or bank account, use a Sales Receipt instead of an invoice.

Requirements:

• Use Sales Receipts as the transaction type.
• Have Auto Payment authorization and store customer’s payment info.
• Set template type to Scheduled.

This setup lets QuickBooks create and process payments automatically on each recurrence.

Managing and Editing Recurring Transactions

You can view, pause, edit, or delete templates any time.

How to Access and Edit:

1. Go to Gear icon > Recurring Transactions.
2. You’ll see a list of all recurring templates.
3. Use filters (by type, customer, or status) to find one.
4. Click Edit to make changes (e.g., amount, frequency).
5. Use Pause or Delete if the template is no longer needed.

Changes take effect from the next scheduled recurrence.

Recurring transactions in QuickBooks Online are a powerful automation tool that can save hours of manual data entry every month. Whether you’re sending out monthly invoices, paying bills, or recording journal entries, the recurring transaction feature ensures consistency, accuracy, and efficiency.   By understanding how to set up scheduled, reminder-based, and unscheduled templates, you can tailor the system to fit any recurring financial workflow in your business.