Yes, when you issue an invoice it'll automatically be added to accounts receivable (A/R), @Chris. I'll gladly share more details about this below so you can manage your income transactions accordingly.
I agree with my colleague that an invoice acts as a request for payment that is receivable for your business. In QBO, your income is determined based on your preferred accounting method. When you use the cash method, your report will count income when you receive the payment for your invoice. Though you issue an invoice in March, your customer paid it in August. Thus, your income will be added in August.
While the accrual method will count your income as soon as you send your invoice even if the payment hasn't been made. When you issue an invoice in March, your income will be counted on the said month as well.
You can learn more about the difference between the cash and accrual methods by checking out this article: Choose between cash and accrual accounting methods in reports.
Also, your business may receive retainers or deposits from customers before performing any services. When you send an invoice, you can pay it using the money from the deposits. If you wish to learn more about this process in QBO, you can check out this article: Record a retainer or deposit.
If you have other concerns about managing invoices and income transactions in QBO, please feel free to leave a comment below. I'm always ready to help. Take care, @Chris.
