How to Add Terms And Conditions in QuickBooks Online

QuickBooks Online has become one of the most popular accounting software platforms for small and medium-sized businesses. It offers a convenient way to manage finances, track expenses, and send professional invoices to clients. One feature that many business owners overlook,  but that can make a major difference in professionalism and clarity,  is the inclusion of Terms and Conditions on invoices, estimates, and sales receipts.

Adding Terms and Conditions in QuickBooks Online is a simple but powerful customization that ensures every customer receives consistent, clear, and legally sound information about your business’s policies. Whether you want to specify payment deadlines, return policies, or disclaimers, QuickBooks Online gives you the tools to include them on every form you send.

In this detailed guide, you’ll learn what Terms and Conditions are, why they matter, and how to add them effectively in QuickBooks Online. You’ll also learn how to customize their appearance, update them as your policies change, and write them in a way that strengthens customer trust.

Understanding the Purpose of Terms and Conditions

Before you add Terms and Conditions to your invoices or forms in QuickBooks Online, it’s important to understand their purpose and importance. The Terms and Conditions (often abbreviated as T&Cs) section is a part of your financial documents that sets out the rules and expectations for doing business with you. It establishes clear communication between your company and your clients, ensuring that both sides understand payment terms, service obligations, and other key details.

Here’s why this section matters:

1. Clarity and Transparency:
   Customers know exactly what is expected—when to pay, what happens if they don’t, and how refunds or cancellations are handled.
2. Legal Protection:
   Written terms serve as evidence of agreed-upon conditions, helping to prevent misunderstandings and disputes.
3. Professionalism:
   Including formal terms shows that your business is organized, detail-oriented, and committed to clear communication.
4. Consistency:
   When you include standard Terms and Conditions on all your documents, every customer receives the same information, reducing confusion.
5. Efficiency:
   Once set up in QuickBooks Online, your Terms and Conditions automatically appear on invoices and estimates, saving you from retyping them each time.

Where You Can Add Terms and Conditions in QuickBooks Online

QuickBooks Online allows you to include Terms and Conditions in several types of documents, including:

• Invoices
• Estimates
• Sales Receipts
• Credit Memos

You can either add a single default Terms and Conditions statement that applies to all your invoices or tailor the text for individual transactions. QuickBooks Online gives you flexibility to include customized messages on each form or maintain a standard version for consistency.

Accessing the Custom Form Styles in QuickBooks Online

The first step to adding Terms and Conditions is accessing your Custom Form Styles settings. This is where you can edit the layout, design, and text of your invoices and other sales forms.

To get started:

1. Log in to QuickBooks Online.
   Use your administrator account to ensure you have access to company settings.
2. Go to Settings.
   Click on the gear icon located at the top right corner of your dashboard.
3. Select Custom Form Styles.
   Under the “Your Company” section, choose “Custom Form Styles.” This is where you can view, edit, or create templates for your invoices, estimates, and receipts.
4. Choose the Form You Want to Edit.
   You can either select an existing invoice template or create a new one by choosing “New style” and selecting “Invoice.”

Once inside the form customization window, you can begin adding your Terms and Conditions section.

Adding Terms and Conditions to Your Invoice Template

The Terms and Conditions section is typically located near the bottom of your invoice, where customers can easily see it after reviewing the payment totals. Here’s how to add it properly:

Step 1: Open the Content Section

In the form customization window, select the Content tab. This tab allows you to edit different areas of your invoice,  the header, body, and footer.

Each area can be selected directly on the preview image of the form. To add Terms and Conditions, click on the footer area of the form (the section at the bottom of the page).

Step 2: Locate the Terms and Conditions Field

Once you click on the footer, you’ll see a text box labeled Terms and Conditions. This is the space where you can type the text you want to appear on every invoice or estimate you send.

Step 3: Enter Your Text

Type your Terms and Conditions directly into this field. You can write as much as you need, though concise wording is usually best. Here are a few examples of what you might include:

“Payment is due within 30 days of the invoice date. Late payments may incur a service charge of 2% per month.”

or

“All goods remain the property of ABC Company until full payment has been received. Please report any discrepancies within 7 days of delivery.”

or

“By accepting this estimate, the client agrees to the project scope, pricing, and timeline outlined herein. Any additional work requested will be billed separately.”

You can also include multiple clauses, separated by line breaks, to cover topics such as delivery, refunds, or liability limitations.

Step 4: Adjust the Text Formatting (Optional)

While QuickBooks Online does not offer advanced text formatting like bold or italic styles in the Terms and Conditions field, you can use punctuation and capitalization strategically to emphasize key points. For instance:

PAYMENT IS DUE UPON RECEIPT.

or

Please make all checks payable to XYZ Company.

This helps certain parts of your message stand out.

Step 5: Save and Apply the Changes

After typing your Terms and Conditions, click Done to save your custom form style. Your updated template will now automatically include the Terms and Conditions section on every invoice created using that form.

If you want this template to become the default, return to the list of custom form styles, find your edited template, click the dropdown menu beside it, and choose Make Default.

Adding Terms and Conditions to a Specific Invoice

While having default Terms and Conditions is convenient, there may be times when you want to customize them for a particular client or transaction. You can do this directly while creating or editing an invoice.

1. Go to the Invoices section.
   Click + New from the left-hand menu, then choose Invoice.
2. Create or open an invoice.
   Enter the customer’s name and relevant details.
3. Scroll down to the Message and Terms section.
   Near the bottom of the invoice form, you’ll see two text boxes: one for the message on the invoice and another for the Terms and Conditions.
4. Type or Edit the Terms and Conditions.
   You can modify the text for this invoice only, without affecting your saved default template. This is useful if you need to include special instructions, discounts, or one-time agreements.
5. Save and Send.
   Once you’re finished, save your invoice and send it to the customer. The custom Terms and Conditions you entered will appear at the bottom of that document.

Customizing the Appearance of Your Terms and Conditions

QuickBooks Online allows you to control not just the wording but also how your Terms and Conditions appear on your forms.

To make them clear and professional:

1. Keep them concise.
   Customers rarely read long legal texts. Limit your Terms and Conditions to a few key sentences.
2. Use plain language.
   Avoid complex legal jargon. Write in a way that’s easy to understand.
3. Use spacing for readability.
   Separate different clauses or policies with blank lines so they don’t blend together.
4. Preview before sending.
   Always use the Preview PDF option before finalizing your form. This lets you check how the Terms and Conditions appear in the document layout.
5. Position appropriately.
   Keep them in the footer or near the totals area, where customers naturally look before paying.

Updating Your Terms and Conditions

Your business policies may evolve over time—payment methods, delivery times, or refund terms can change. Updating your Terms and Conditions in QuickBooks Online is quick and straightforward:

1. Go to Settings by clicking the gear icon.
2. Select Custom Form Styles.
3. Choose the template that contains your current Terms and Conditions.
4. Click Edit, then go to the Content section.
5. Select the footer area and edit your text in the Terms and Conditions box.
6. Click Done to save your updated version.

Your changes will automatically apply to all new invoices or estimates that use that template, keeping your forms consistent and up to date.

Best Practices for Writing Terms and Conditions

Knowing how to insert Terms and Conditions is important, but knowing what to write is equally crucial. Your wording should protect your business while remaining customer-friendly. Here are some best practices:

1. Be Clear and Specific.
   Avoid vague statements. For example, instead of saying “Payment due soon,” specify “Payment due within 30 days of invoice date.”
2. Include Payment Methods.
   State which forms of payment you accept:  credit card, bank transfer, or check.
3. Add Late Payment Clauses.
   Indicate what happens if payment is late, such as “A 2% monthly interest will be applied to overdue balances.”
4. Address Ownership and Liability.
   Include statements such as “Goods remain the property of the seller until payment is received in full.”
5. Mention Refund or Return Policies.
   If you offer refunds or exchanges, specify the conditions under which they apply.
6. Keep the Tone Professional.
   Even though the Terms and Conditions are a legal safeguard, they should read courteously and respectfully.
7. Review Regularly.
   Business conditions change, and so should your T&Cs. Review them at least once a year.
8. Consult a Professional When Needed.
   If your terms involve complex legal or industry-specific conditions, consult a business attorney to ensure compliance with relevant laws.

Troubleshooting Tips

Sometimes, users encounter small issues when adding or viewing Terms and Conditions in QuickBooks Online. Here are a few common problems and their solutions:

• The Terms and Conditions don’t appear on the invoice.
  Make sure you’ve selected the correct custom form style that contains your Terms and Conditions before sending the invoice.
• The text gets cut off.
  If your Terms and Conditions are long, QuickBooks might truncate the text when printing. Shorten the message or rephrase it to fit within the space provided.
• Customer sees an old version of your T&Cs.
  Check that you updated the correct template and that it is set as the default form style.
• Different T&Cs needed for different clients.
  Create multiple custom form styles for different scenarios (for example, one for retail customers and one for wholesale) and choose the appropriate style when sending invoices.
• Formatting doesn’t look clean.
  Use line breaks and spacing between sentences for clarity, as QuickBooks Online does not support rich text formatting.

Why Adding Terms and Conditions Enhances Professionalism

Including Terms and Conditions in your QuickBooks Online documents is more than a technical adjustment,  it’s a reflection of how you manage your business. A clear, concise Terms and Conditions section communicates professionalism and transparency. It shows clients that you take your business seriously, have structured policies in place, and care about ensuring mutual understanding.  In addition, your Terms and Conditions act as a safety net. If a payment dispute arises, or if a customer questions a policy, you have documented evidence of what was agreed upon. This simple addition can save you time, money, and potential frustration in the long run.  From a customer’s perspective, well-written Terms and Conditions also inspire trust. Clients appreciate knowing exactly what to expect regarding payments, deadlines, and responsibilities. It helps create smoother transactions and fewer misunderstandings.

Learning how to add Terms and Conditions in QuickBooks Online is one of the simplest yet most impactful steps you can take to improve your business documentation. The process is straightforward: access your Custom Form Styles, edit the footer section, and type in your chosen terms. Once done, your invoices, estimates, and sales receipts will automatically include clear, professional, and consistent policies that protect your business and set the right expectations with your clients.

By keeping your Terms and Conditions concise, regularly updated, and clearly worded, you ensure your customers understand their obligations—and you demonstrate that your business operates with professionalism and transparency. Whether you’re a freelancer, a small business owner, or a growing company, this small addition can make a big difference in your client relationships and your company’s credibility.