QBO Managing Client and Work 3 — Questions and Answers
Question 1: Which report in QBO is most useful for reviewing all open invoices across multiple clients from a single view?
- Profit and Loss by client
- Accounts Receivable Aging Summary (Correct answer)
- Transaction List by Vendor
- Balance Sheet by class
Correct answer: Accounts Receivable Aging Summary
The Accounts Receivable Aging Summary groups unpaid invoices by age, giving a clear view of outstanding balances across clients.
Question 2: A client calls asking about a payment they sent two weeks ago that hasn't been applied. What is the first action in QBO?
- Create a credit memo for the amount
- Check Undeposited Funds and unapplied payments (Correct answer)
- Void the original invoice and reissue
- Run a Profit and Loss report
Correct answer: Check Undeposited Funds and unapplied payments
Unapplied payments often sit in Undeposited Funds or as open credits; checking there first identifies the root cause.
Question 3: In QBO, what does enabling 'Projects' for a client allow you to track?
- Payroll runs associated with a job
- Income, expenses, and time by individual project (Correct answer)
- Document uploads per engagement
- Sales tax by location
Correct answer: Income, expenses, and time by individual project
The Projects feature in QBO lets you group income, expenses, and time entries under a specific project for profitability tracking.
Question 4: A ProAdvisor needs to add a sub-customer in QBO to track invoices for a specific division of a client's business. What setting enables this?
- Classes
- Locations
- Bill parent customer (Correct answer)
- Custom fields
Correct answer: Bill parent customer
Sub-customers can be set to 'Bill parent customer' so invoices roll up to the main customer account while tracking by division.
Question 5: Which QBO feature automatically sends payment reminders to clients with overdue invoices?
- Recurring templates
- Automatic invoice reminders (Correct answer)
- Batch invoicing
- Payment links
Correct answer: Automatic invoice reminders
QBO's automatic invoice reminders let you set rules to email clients when invoices are due or overdue without manual follow-up.
Question 6: What is the effect of marking a QBO customer as 'inactive'?
- All open invoices are voided automatically
- The customer is hidden from lists but data is preserved (Correct answer)
- The customer is permanently deleted
- Future transactions are blocked at the bank feed level
Correct answer: The customer is hidden from lists but data is preserved
Making a customer inactive hides them from active lists while retaining all historical transaction data.
Question 7: A ProAdvisor needs to apply one payment to multiple invoices for the same client in QBO. How is this done?
- Create a journal entry for each invoice
- Use 'Receive Payment' and check all applicable invoices (Correct answer)
- Issue a credit memo and offset each invoice manually
- Run the batch payment tool from the Reports menu
Correct answer: Use 'Receive Payment' and check all applicable invoices
The 'Receive Payment' screen lets you select multiple open invoices and apply a single payment across all of them.
QBO Managing Client and Work 3
Which report in QBO is most useful for reviewing all open invoices across multiple clients from a single view?