Recording and making bank deposits in QuickBooks Online is essential for maintaining accurate financial records. This step-by-step guide will help you understand the process, making it easy to deposit payments and match them with your bank records.
Go to the + New menu.
Select Bank Deposit.
Choose the bank account to deposit to.
Select payments to include in the deposit.
Enter any additional details (e.g., fees, cash back).
Click Save and Close to complete the deposit.
To begin, log in to QuickBooks Online and navigate to the + New menu on the left sidebar. This menu contains various transaction types, including invoices, expenses, bills, and deposits. Scroll down to the Other section and select Bank Deposit. This action will include the Bank Deposit window to record and finalize your bank deposits.
Once on the Bank Deposit page, you must select the bank account where the funds will be deposited. Select the appropriate account from the dropdown list in the Bank Account field. Ensure you choose the correct account, affecting your financial reports and making reconciling easier.
Note: If you haven’t set up your bank account in QuickBooks yet, you’ll need to do this first. To add a new account, navigate to Accounting > Chart of Accounts > New and follow the prompts to set up your bank account.
Under the Select the payments included in this deposit section, QuickBooks will display a list of payments that have been recorded but have yet to be deposited. These payments include customer payments, checks, and other deposits you received.
Go through the list and check the boxes next to each payment you want to include in this deposit. By selecting these payments, you're telling QuickBooks that you’re depositing them into the same bank account. It’s essential only to select payments deposited together in your bank account to match your records with the bank statement later on.
After selecting the payments, you may need to provide additional information to complete the deposit accurately.
Add Funds to this Deposit: This section is for any additional funds that must be included with the deposit, such as interest income, rebates, or owner contributions. Specify the amount and the correct account for tracking purposes.
Cash Back Goes To: If you received cash back from the deposit (such as for a business purchase or petty cash withdrawal), enter the amount in this field. QuickBooks allows you to select an account for the cashback, such as a petty cash account, to keep records accurate.
You can account for any transaction fees, such as bank service fees or credit card processing fees, in the Add Funds to this Deposit section. Select the appropriate account, such as Bank Fees, and enter the fee amount as a negative number. This adjustment will ensure that your QuickBooks records match the amount deposited in the bank after deductions.
Double-check all fields to make sure the details are correct. The Total at the bottom should match the amount you deposited in the bank. Reviewing ensures that the deposit record accurately reflects your bank transaction, which will be critical for reconciliation.
Once you've confirmed the details, select Save and Close (or Save and New if you have more deposits to record). QuickBooks will record the deposit, and the payments will no longer appear in the Undeposited Funds section.
Reconcile Regularly: To keep your books accurate, reconcile your bank account regularly. This will help identify any discrepancies and maintain alignment with your bank statement.
Record Deposits Promptly: Enter deposits as soon as they’re made to avoid confusion when reconciling or running reports.
Use Undeposited Funds: QuickBooks has an account that temporarily holds payments until you record a bank deposit. This process ensures accurate reporting and tracking of customer payments before they’re deposited.
By following these steps, you’ll effectively manage bank deposits in QuickBooks Online, ensuring accurate financial reporting and simplifying the bank reconciliation process.
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Manage deposits in QuickBooks Online.
Recording bank deposits in QuickBooks Online helps keep your financial records accurate and up to date. It ensures that customer payments, refunds, and other incoming funds are properly tracked, making reconciling your bank account and generating accurate financial reports easier.
To record a bank deposit, go to the + New menu on the left sidebar, scroll down to the Other section, and select Bank Deposit. This will open the Bank Deposit window where you can enter deposit details.
The Bank Deposit screen will display a list of all recorded but undeposited payments. Select only those payments that were deposited together in your bank account. This approach helps ensure that your QuickBooks records match your bank statements, making reconciliation easier.
If there are bank fees or other deductions (such as credit card processing fees), you can record them under the Add Funds to this Deposit section. Enter the fee amount as negative and select the relevant expense account, like Bank Fees or Processing Fees.
The Undeposited Funds account temporarily holds payments received until they’re officially deposited into your bank account. This helps you track which payments have been received but not yet deposited, accurately representing your cash flow.
Use the Cash Back Goes To field in the Bank Deposit screen to record cash back, such as for business expenses or petty cash withdrawals. Select the appropriate account to categorize the cash-back transaction.
If you select the wrong bank account, you can edit the deposit. Go to Accounting > Chart of Accounts, find the incorrect deposit, and click Edit to change the bank account. Ensure the correct account is selected to avoid discrepancies during reconciliation.
It’s best to record bank deposits in QuickBooks Online when you make them in your bank account. Regularly updating these records ensures your books stay accurate and saves time during bank reconciliation.
If you need to add additional funds (like rebates or interest income) to a deposit, enter them in the Add Funds to this Deposit section on the Bank Deposit screen. Select the correct income or other account to ensure accurate categorization.
To edit or delete a recorded deposit, go to Accounting > Chart of Accounts, find the deposit in the correct bank account, and select View Register. Find the deposit, click Edit to modify it, or choose Delete if you need to remove it.