QuickBooks Online (QBO) is a versatile accounting software widely used by small to medium-sized businesses. One of the critical aspects of managing finances in QBO is accurately recording bank deposits. This process ensures your financial records reflect your actual bank transactions, helping you maintain accurate books and making financial reporting and analysis easier.
In this comprehensive guide, we will walk you through the step-by-step process of recording bank deposits in QuickBooks Online, addressing various scenarios such as customer payments, other income, and transfers from other accounts.
Introduction to Bank Deposits in QuickBooks Online
A bank deposit in QuickBooks Online refers to the process of recording the money you’ve received and deposited into your bank account. This could include customer payments, sales receipts, and other forms of income. Accurate recording of deposits is crucial for maintaining up-to-date financial records and ensuring that your bank account balances match your QuickBooks records.
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Steps to Record a Bank Deposit in QuickBooks Online
Step 1: Sign in to QuickBooks Online
To begin, log in to your QuickBooks Online account. Ensure you have the necessary permissions to access and manage banking transactions. If you are unsure about your access rights, check with your QuickBooks administrator.
Step 2: Navigate to the Bank Deposit Screen
Once you’re logged in, follow these steps to access the bank deposit screen:
- From the Dashboard:
- Click on the
+ Newbutton located on the left-hand side of the navigation bar. - From the dropdown menu, select
Bank Depositunder theOthersection.
- Click on the
- From the Banking Menu:
- Navigate to the
Bankingmenu on the left-hand side. - Click on the
Bankingtab. - Select the bank account where you want to record the deposit.
- Click on
Record a depositin the upper right corner of the screen.
- Navigate to the
Step 3: Select the Account for Deposit
In the Bank Deposit screen, you will see a form with several fields. Start by selecting the bank account where you are depositing the money. This is the account that will be credited with the deposit amount.
- Account: Select the appropriate bank account from the dropdown menu. Ensure this is the account where the physical deposit was made.
Step 4: Enter the Deposit Date
Next, enter the date of the deposit. This date should match the date on your bank statement to ensure consistency and accuracy in your records.
- Date: Use the calendar picker to select the deposit date. You can also type the date manually.
Step 5: Add Received Payments
If you are depositing payments received from customers, you can select them from the list provided in the Select the payments included in this deposit section.
- Select Payments:
- QuickBooks Online will display a list of received payments that have not yet been deposited.
- Check the box next to each payment you want to include in the deposit.
- The total of the selected payments will appear at the bottom of the list.
- Review Payments:
- Ensure all selected payments are correct.
- If any payments are missing, ensure they have been recorded properly in QuickBooks as received payments or sales receipts.
Step 6: Add Additional Funds to Deposit
If you need to add funds to the deposit that are not from customer payments, such as income from other sources or refunds, use the Add funds to this deposit section.
- Received From:
- Enter the name of the person or entity from whom you received the funds.
- Account:
- Select the appropriate income account to categorize the deposit.
- Amount:
- Enter the amount of the deposit.
- Payment Method:
- Select the payment method (e.g., cash, check, credit card).
- Memo:
- Optionally, you can add a memo for additional details.
Step 7: Review and Save the Deposit
Before saving, review all the information entered to ensure its accuracy. Double-check the total deposit amount, the selected bank account, and the deposit date.
- Review Total:
- Ensure the
Deposit Totalat the bottom of the form matches the total amount deposited in your bank.
- Ensure the
- Save the Deposit:
- Click
Save and closeif you are done, orSave and newif you want to record another deposit immediately.
- Click
Step 8: Verify the Deposit in the Bank Register
After saving, verify that the deposit has been correctly recorded in your bank register.
- Navigate to the Bank Register:
- Go to the
Accountingmenu. - Select
Chart of Accounts. - Find and click on the bank account where the deposit was recorded.
- Review the bank register to ensure the deposit appears correctly.
- Go to the
Recording Different Types of Bank Deposits
Customer Payments
When recording customer payments as deposits, ensure you have already recorded the payments in QuickBooks Online. These could be payments against invoices or sales receipts.
- Record Payment:
- Ensure the payment is recorded as received in QuickBooks.
- Follow the steps to include these payments in the deposit.
Other Income
For income that is not from customers, such as interest income, sales of assets, or refunds, you can add these amounts in the Add funds to this deposit section.
- Categorize Properly:
- Use the appropriate income account to categorize these funds.
Transfers from Other Accounts
If the deposit is a transfer from another bank account, record it as a transfer rather than a deposit.
- Record Transfer:
- Use the
Transferoption from the+ Newmenu. - Select the accounts involved in the transfer.
- Use the
Tips for Accurate Bank Deposits
- Regularly Reconcile Bank Accounts:
- Regularly reconcile your bank accounts in QuickBooks Online to ensure your records match your bank statements.
- Use Clear Memos:
- Add clear memos to deposits to make it easier to identify the source of funds.
- Double-Check Dates and Amounts:
- Ensure dates and amounts match your bank records to avoid discrepancies.
Conclusion
Recording bank deposits accurately in QuickBooks Online is essential for maintaining correct financial records and ensuring your accounts are up to date. By following the steps outlined in this guide, you can effectively manage your bank deposits and ensure your financial data is accurate. Regular reconciliation and attention to detail will help you avoid discrepancies and keep your business finances in good order. If you have any questions or need further assistance, don’t hesitate to contact QuickBooks Online support at +1-855-838-5970.
Frequently Asked Questions
One important rule to follow when recording bank deposits in QuickBooks is to ensure that all payments are properly categorized and matched with their corresponding invoices or sales receipts before making a deposit. This helps maintain accurate records and makes bank reconciliation easier. Always double-check the dates and amounts to ensure they match your bank statements.
To categorize bank deposits in QuickBooks Online:
1. Go to the + New button and select Bank Deposit.
2. In the Add funds to this deposit section, enter the details of the funds, including who the funds were received from, the appropriate income account, and the payment method.
3. Ensure you select the correct bank account where the deposit was made.
4. Categorize each line item accurately to reflect the nature of the deposit, such as income, loan, or refund.
Deposits in QuickBooks should be accounted for by:
1. Recording customer payments against invoices or sales receipts.
2. Using the Bank Deposit feature to group multiple payments into a single deposit that matches your bank statement.
3. Categorizing each deposit correctly to reflect its source, whether it’s customer payments, other income, loans, or transfers.
4. Regularly reconciling your bank accounts to ensure that the recorded deposits match your actual bank deposits.
To view deposits in QuickBooks Online:
1. Navigate to the Accounting menu on the left side.
2. Select Chart of Accounts.
3. Click on the bank account where you recorded the deposits.
4. In the bank register, you will see all transactions, including deposits. You can filter by date or transaction type to find specific deposits.
To record a deposit without an invoice in QuickBooks Online:
1. Click on the + New button and select Bank Deposit.
2. In the Add funds to this deposit section, enter the details of the deposit, including who the funds were received from and the appropriate account.
3. Fill in the payment method and amount.
4. Save the deposit. This method is useful for recording income that doesn’t have an associated invoice, such as refunds or interest income.
To move money from Undeposited Funds in QuickBooks Online:
1. Click on the + New button and select Bank Deposit.
2. In the Select the payments included in this deposit section, check the payments you want to move from Undeposited Funds to your bank account.
3. Ensure the bank account selected at the top is the one where the funds were deposited.
4. Review and save the deposit. This will transfer the funds from Undeposited Funds to the specified bank account.
To record a deposit that is not income in QuickBooks Online:
1. Go to the + New button and select Bank Deposit.
2. In the Add funds to this deposit section, enter the details such as who the funds were received from.
3. Choose an appropriate account that is not an income account, such as a liability account for loans or an asset account for owner contributions.
4. Enter the amount and save the deposit. This ensures the deposit is correctly categorized and does not affect your income totals.
To find deposits in QuickBooks Desktop:
1. Go to the Banking menu at the top.
2. Select Make Deposits.
3. If the Payments to Deposit window appears, you can see the undeposited funds listed.
4. To view past deposits, go to the Reports menu, select Banking, and then Deposit Detail.
5. This report will show a list of all deposits, allowing you to filter by date and review the details of each deposit.
