How to Record Deposits in QuickBooks Online/Desktop – Learn the Process

In QuickBooks, entering the undeposited funds or non-income deposits is important for maintaining accuracy and efficiency. Businesses can maintain well-organized financial records for financial analysis and decision-making with proper bank account administration.

It involves a lot of banking transactions such as deposit slips, which need to be managed carefully to make sure that every transaction is recorded and matched with the bank statement. Businesses not only maintain a methodical approach to tracking financial transactions, but they also give openness and accountability by capturing customer and invoice details during deposit recording. 

Businesses can minimize inconsistencies and possible errors by using undeposited funds to make sure that every payment is accurately recorded in their accounting system prior to being deposited into their bank account. While taking care of undeposited funds, keeping thorough records of non-income deposits is essential since they support the company’s overall financial stability. So, maintaining accurate records of client deposits and payments is essential to small business financial stability and expansion.

How to record deposits in QuickBooks Online ?

QuickBooks Online streamlines the deposit process to help businesses manage cash flow more effectively and keep a clear picture of their financial situation.  In QuickBooks Online, deposits can be entered manually or by using the Bank Deposit tool. Both approaches are essential for maintaining proper bookkeeping records and managing finances.

Recording using Bank Deposits feature

One of the best ways to record deposits in QuickBooks Online is the Bank Deposits feature, which helps to streamline financial processes and produce accurate financial reports. Businesses can quickly record and organize their deposits with this function, making sure that all transactions are appropriately recorded in their financial records. By comparing deposit records with related bank transactions, the Bank Deposit feature expedites the reconciliation process and makes error-free and seamless financial reporting possible. 

Recording deposits manually

Businesses can also manually record deposit entries in QuickBooks Online, providing flexibility and control, enabling thorough financial transaction recording and expedited bank reconciliation procedures. With the help of this technique, small businesses can precisely record every deposit and give a thorough picture of their entire financial operations. Through the procedure, businesses will maintain accurate financial records and make well-informed financial decisions by having a comprehensive grasp of their cash flow.

While deciding which approach you want to go with, there are several ways to enter deposits into QuickBooks Online, such as via a sales receipt or a customer payment. All of these methods support thorough financial reporting and smooth connection with the accounting system.

Enter deposits from Sales Receipt

Making deposits from a sales receipt into QuickBooks Online enables thorough financial analysis and precise financial reporting, both of which help in making well-informed decisions.

1. Find the Sales receipt in the deposit section.
2. Enter the corresponding amount.
3. Once the amount is entered, it will reflect in every sales transaction.

These deposited money are necessary for monitoring and analyzing cash flow, which offers important insights into the performance and health of the company’s finances. Precisely recording the deposits made from sales receipts is essential to producing accurate financial statements and carrying out in-depth financial analysis for forecasting and strategic planning.

Enter deposits from Customer Payment

In order to facilitate thorough financial planning for small businesses and maintain accurate financial records, Customer Payments must be used to submit deposits into QuickBooks Online. It entails precisely recording the money that clients give the business, ensuring that its records accurately represent the real funds. This procedure is essential for keeping the company’s financial records accurate and transparent, for making account reconciliation easier, and for creating a transparent trail of all incoming cash.

This procedure guarantees that all customer revenue is appropriately documented and classified, offering a transparent picture of the company’s financial situation. Businesses can precisely manage their cash flow, reconcile accounts, and produce crucial financial reports by recording these deposits. It makes it easier to spot patterns and trends in client payments, which supports strategic financial planning and well-informed decision-making.

In QuickBooks Online, deposits may be made straight from the Home Screen or the Bank Register—two essential features that help small businesses keep their accounting procedures efficient and their bank account reconciliations in order.

Deposit Money Using the Home Screen

The ability to deposit money directly from QuickBooks Online’s Home Screen is a practical and effective method that helps maintain accurate financial records and streamline corporate processes.

Through the Deposit option on the Home Screen, businesses may easily record and match incoming payments to the appropriate transactions. This technique guarantees correct documentation of all financial inflows, supporting thorough financial records.

This function makes a substantial contribution to the overall accuracy and efficiency of financial processes, which in turn promotes improved decision-making and the expansion of businesses.

Deposit Money Using the Bank Register

Making a deposit using QuickBooks Online’s Bank Register is a comprehensive method that covers a range of financial tools for small businesses and smoothly connects with financial reporting.The steps involved in making a deposit from the Bank Register are:

1. Enter the deposit amount.
2. Select the bank account.
3. Decide the deposit based on the type of transaction.

Businesses can easily create financial statements, reconcile accounts, and track their cash flow thanks to this integration with financial reporting. A comprehensive approach to financial management is made possible by the smooth integration with a variety of financial tools, including budgeting, spending monitoring, and invoicing. This gives small businesses the resources they need to remain solvent and make wise decisions.

Steps to Record a deposits in QuickBooks Online

Step 1: Place transactions in the Undeposited Funds account.

1. Click + New.
2. Choose Receive payment.
3. Choose the customer from the Customer drop-down.
4. Click on the checkbox for the invoice you’re receiving payments for.
5. Select Undeposited Funds, from the Deposit to dropdown.
6. Fill out the form.
7. Click on Save and send, Save and new, or Save and close.

Step 2: Integrate bank deposit and QuickBooks transactions.

In QuickBooks, every bank deposit generates a unique record. Put money on each of your deposit slips one at a time. 

1. Choose + New.
2. Choose Bank Deposit.
3. Select the account you wish to deposit the funds into from the Account menu.

4.  For every transaction you wish to combine, check the box.
5. Verify that the selected transactions’ totals correspond to the amount on your deposit slip. Refer to your deposit slip for guidance.
6. Choose between Save and new and Save and close.

How to manage the bank deposits in QuickBooks Online?

Review previous bank deposits

1. Click on Reports.
2. To access the section about sales and customers, scroll below.
3. Choose the report for Deposit Details.

All of your completed bank deposits are listed in the report. To obtain further information, select individual deposits.

Remove the payment from a bank deposits

1. Select All Sales from the Sales menu.
2. Locate and open the payment that you wish to cancel. “Closed” should be the status.
3. Click the date link next to the name of the customer. The bank deposit is now open.

4. Tick the box next to the payment you wish to cancel.
5. Either choose Save and close or Save and new.
   

The money will be returned to the account for undeposited funds. It can be applied to a different deposit.

Delete a bank deposit

1. Select Chart of accounts after selecting Settings.
2. Locate the bank account where the deposit was made, then choose the View register.
3. Find the bank deposit and click on it to view additional information.
4. Click Delete.
    

Every deposit payment is returned to the Undeposited Funds account. You can make a fresh deposit to get started.

How to View Bank Deposits in QuickBooks Online?

Viewing bank deposits in QuickBooks Online helps small businesses develop successful financial plans by providing insights into their financial operations. Businesses can watch the flow of money, spot trends in their sources of income, and reconcile their financial records by examining bank deposits. As a result, they are better equipped to comprehend their cash flow trajectory, spot possible cost-saving opportunities, and decide on expansion and investment with knowledge.

Monitoring bank deposits closely can aid in spotting any disparities, assisting in the discovery of fraud and guaranteeing financial compliance. Viewing the bank deposits is an essential part of keeping small businesses financially stable and helping them make well-informed decisions.

How to include bank service charges or processing fees in bank deposits in QuickBooks Online ?

There are times when the bank is going to take some service charges and processing fees. You need to make sure that you don’t edit the original QuickBooks transaction ,instead add the cost while using the bank deposit window:

1. To access the “Add funds to this deposit” area, scroll down.
2. Make a line item entry for the fee.
3. Select who sent the payment.
4. From the Account menu, choose Bank Charges.
5. Enter a negative value for the fee amount.
6. Compare the deposit amount to the bank charge.
7. Click on Save and new or Save and close. 

• If you don’t have an open bank charge account, kindly follow the below – mentioned steps:

1. Click the + Add New option from the account menu.
2. Choose Expenses as the account type and Bank Charges as the detail type in the account creation panel.
3. Name the account something straightforward, such as “Bank fees.”

How to record deposits in QuickBooks Desktop?

QuickBooks Desktop offers a unique method for you to merge all of the details so that your records correspond to your actual bank deposits. You need to make sure that every transaction is appropriately recorded, including the date of the deposit, the mode of payment, and the source of revenue, which is a useful tactic for streamlining the deposit recording process.

By streamlining the recording procedure for many transactions and utilizing the batch deposit option, you may save time and lower the risk of errors. To make sure that all deposits are appropriately reported in QuickBooks, it is also advantageous to routinely reconcile bank accounts. There are different procedures and techniques for making deposits from QuickBooks Desktop, which facilitates the easy transfer of money to specified accounts or platforms.

Direct bank transfers are one way that QuickBooks Desktop users can deposit money. You may quickly move money into and out of your account by connecting QuickBooks to your bank account. Another way is to accept payments and deposits straight into your QuickBooks account by using merchant services. For effective handling of deposit procedures, you can make use of third-party payment processors.To guarantee correct and timely transactions, it is important to take into account the significance of effective fund allocation and transfer procedures.

Use Direct Deposit

By using QuickBooks Desktop’s direct deposit option, you make the deposit process easier by sending money directly to specific accounts in a convenient and effective manner. With the use of this function, businesses save time and do away with paper checks by electronically depositing wages, vendor payments, and other transactions into the bank accounts of their workers or vendors. 

Businesses can plan payments ahead of time and guarantee safe and prompt financial transfers without making numerous journeys to the bank by utilizing the direct deposit feature. It ensures accuracy and adherence to payment standards while lowering the possibility of errors related to manual payment processing.

Use a Third-Party Payment Service

Another way to deposit money using QuickBooks Desktop is to use third-party payment providers to make safe and effective transfers of funds to designated accounts. There are a number of benefits provided by these third-party payment providers, such as increased payment management flexibility and safe transactions. 

QuickBooks Desktop users can simplify their financial procedures, lower manual mistake rates, and keep easy track of every transaction by integrating third-party payment systems. These services offer strong security measures that guard confidential financial data and lessen the possibility of fraud. Businesses may effectively manage their financial operations while guaranteeing the security and integrity of their transactions thanks to this seamless connectivity.

Maintaining accurate financial records and ensuring the classification of incoming cash into income or expense categories depend on your ability to effectively categorize deposits in QuickBooks Desktop.

This classification is essential for giving a clear picture of the company’s financial situation and for helping decision-makers. It’s critical to take into account various aspects when classifying deposits, including the source of the money whether it comes from loans, sales revenue, or other sources of income. 

For deposits use a Bank Deposit Account 

Using a dedicated bank deposit account is a useful way to classify deposits in QuickBooks Desktop, which facilitates tracking and classification of incoming funds.

This approach has a number of advantages, including streamlining the reconciliation procedure and giving you a comprehensive picture of the financial activities of your company. In order to put this into practice, you can open a Bank Deposit account in QuickBooks Desktop’s Chart of Accounts and set it aside only for deposit transactions.

To ensure that all deposits are precisely categorized and conveniently available for reporting and analytical needs, just utilize this account as the “Deposit To” box when recording deposits.

For deposits use Undeposited Funds Account 

Using the Undeposited funds account is an alternate method for classifying deposits in QuickBooks Desktop that offers more flexibility in handling and classifying money prior to final deposit allocation.

This technique expedites the reconciliation process by enabling users to combine several payments from clients or customers into a single deposit. Businesses can precisely categorize and match received payments with matching invoices or sales receipts by using the Undeposited Funds account. This lowers the possibility of inaccuracies in financial reporting by assisting in the maintenance of clear and ordered records. 

It ensures greater control over the entire deposit management process by providing a practical means of tracking outstanding deposits and keeping an eye on cash flow.

Steps to record a deposits in QuickBooks Desktop

Step 1: Transfer funds to the Undeposited Funds account. 

Put the transactions you wish to combine into the Undeposited Funds account if you haven’t previously. There are 3 scenarios:

Scenario 1: Payments processed with QuickBooks Payments:

Step 1: Create a new QuickBooks Payments account or link an existing one.

Register for QuickBooks Payments if you haven’t already. Additionally, link your current QuickBooks Payments account to QuickBooks Desktop if you already have one for another product.

Step 2: Enable your payment methods

You can begin sending bills that your clients can pay online as soon as you enable payments.

Activate online payment for all customers: 

1. Activate online payments for every client.
2. Click Edit , then choose Preferences.
3. After choosing Payments, select the option for Company Preferences.
4. Choose the payment options you wish to offer to every customer under the Online Payments section. Next, choose OK.
5. Choose “Apply to current customers.”

Activate online payment for a specific customers:

1. Choose the Customer Center from the Customers menu.
2. Locate the client.
3. To edit their profile, select the Edit icon.
4. Choose Payment Preferences.
5. Choose the payment methods you wish to offer this customer in the Online Payments section. Next, choose OK.

Step 3: Send an online invoice

1. Choose the Create Invoices option from the Customers menu.
2. From the Customer: Job dropdown, choose the customer. Note: Verify that the Email field contains an email address.
3. Following Check out the available online payment alternatives and let your consumer know how to make a payment.
4. Click the Change link if you would want to modify this invoice’s payment options.  Check the boxes corresponding to the options you wish to be accessible. Next, choose Save.
5. Include the goods and services you must market.
6. Complete the remainder of the invoice.
7. On the invoice form, select the Main tab.
8. After choosing the Email dropdown, choose Invoice.
9. Examine the message on the invoice. Once you’re prepared, click Send.

This sends the invoice and a Pay Now button to your customer via email. Your client only needs to click the button to complete the online invoice payment.

Modify the payment methods for a given invoice.

You have the ability to modify the available payment methods when creating an invoice. This just affects the one invoice that you modified; it has no bearing on any other invoices.

Scenario 2: Invoice payments you process outside of QuickBooks:

Enter a payment from a customer

• For Windows

1. Select Receive Payment from the Customers menu or the QuickBooks Home page.
2. Choose the customer’s name from the drop-down menu.
3. Put the Received Amount here.
4. Verify the date and then select the payment option.
5. Choose the invoice or bills that you wish to settle.
6. Choose Discounts and Credits to add a discount or credit.
7. Click Save & Close.

• For Mac 

1. Choose Receiving Payments from the Customers menu.
2. Click on Make a Payment.
3. Complete the fields.
4. Choose the unpaid bills and expenses for which you are getting paid. Beside the charge or invoice is a check.
5. Decide on the method of payment deposit: To retain the payment in your undeposited money account, choose Group with other undeposited funds; alternatively, choose Deposit to and then input a particular bank account.
6. Click Save.

Choose a payment from the list, then adjust the details to make changes. Click the Show/hide customer information icon to view a customer’s payment history.

To apply a discount for early payment

1. Navigate to Customers and choose Accept payments.
2. In the Receive Payments window, enter the customer’s payment.
3. Click on Discount Details.
4. Modify the discount’s amount (Optional step).
5. QuickBooks determines a recommended discount amount based on the date of payment and your terms of payment with the customer.

Scenario 3: Sales receipts for payments you process outside of QuickBooks:

Payments for sales receipts are automatically deposited by QuickBooks into the Undeposited Funds account. QuickBooks takes care of the rest; all you need to do is create a sales receipt. If you would prefer to choose which account you make payments to:

1. Click on the Edit menu, then choose Preferences.
2. Payments can be chosen from the list. Next, select the tab for Company Preferences.
3. The Use Undeposited Funds as a Default Deposit to Account checkbox should be selected and unchecked.
4. Click OK.

Every time you create a sales receipt, you may now choose to use an Undeposited Funds account or a different account.

1. Choose Create Sales Receipt from the Homepage.
2. From the Customer drop-down menu, choose the customer.
3. Choose Undeposited Funds from the Deposit to drop-down menu.
4. Completion of the form is required.
5. Select Save & Close or Save & New.

Step 2: In order to combine payments, record a bank deposit in QuickBooks.

You can enter the money into QuickBooks as soon as you obtain your bank’s deposit slip. 

1. Choose Record Deposits / Make Deposits from the Homepage.
2. Choose the payments you wish to combine in the Payments to Deposit window. Next, choose OK.
3. Choose the account you wish to deposit money into from the Deposit to option in the Make Deposits window.
4. Verify the amount of the deposit. Verify that the account and the chosen payments correspond to the bank’s deposit slip. Refer to your deposit slip for guidance.
5. Input the day you visited your bank to make the deposit.
6. As needed, add a memo.
7. Once finished, choose Save & Close.

How to manage the bank deposits? 

 Review past bank deposits

To view previous deposits as well as the aggregated transactions: 

1. Click on the Reports menu. Next, choose the Report Center.
2. Go to the Banking section.
3. Locate the report on Deposit Details, then click the Run icon. 

All of your documented bank deposits are listed in the report. To obtain further information, you can choose individual deposits.

Delete a bank deposit

You have the option to erase a bank deposit if you ever need to start over: 

1. Click on the Reports menu. Next, choose the Report Center.
2. Go to the Banking section.
3. Locate the report on Deposit Details. Next, click the Run icon.
4. Locate and access the deposit that you wish to remove.
5. All of the payments that are included in the deposit are visible in the Make Deposits window.
6. Examine them to determine if you really need to start a new.
7. In the window, right-click and choose “Delete deposit.” To confirm, click OK.

All deposit payments are returned to your Undeposited Funds account. You are able to make a fresh deposit and start again.

Record recurring deposits

You can set up a recurring transaction for an existing deposit if you record the same deposits on a regular basis: 

1. After choosing the Banking option, select Use Register.
2. Look for an existing deposit and open it.
3. Select Memorize Deposit with a right-click on the deposit.
4. If you would want QuickBooks to automatically record the deposit, select Automate Transaction Entry. If not, choose Add to my Reminders List to receive a prompt to initiate the deposit.
5. Choose the frequency (monthly, weekly, daily, etc.) from the How Often dropdown menu.
6. Enter the start date of the recurring deposits in the Next Date section. On the first day, the first recurring deposit will begin.
7. Enter the number of deposits you would like QuickBooks to create in the Number Remaining field.
8. You can specify how many days in advance QuickBooks will record the deposit in the Days In Advance To Enter area. If you would want to record the deposit on the day of your choosing, enter 0.
9. Click OK when you’re finished.

When you select the date and frequency of the deposit, QuickBooks will automatically record it.

How to deposit payments into two separate bank accounts?

If you must deposit money into more than one bank account: 

1. Choose Record Deposits / Make Deposits from the Homepage.
2. Choose the payments you wish to combine in the Payments to Deposit window. Next, choose OK.
3. Choose the account you wish to deposit money into from the Deposit to option in the Make Deposits window.
4. Under the payment you wish to transfer to a different account, add a new line.
5. Choose the second account from the dropdown menu on the second line. Next, enter the desired amount as a negative value in the second account. You can enter all or a portion of the amount.
6. Once finished, choose Save & Close.

How to deposit payments into an account other than a bank account?

You often record deposits in QuickBooks for a bank or other current asset accounts, since you’re simulating a real-life bank deposit. Should you wish to transfer a deposit to a different kind of account:

1. Choose Record Deposits / Make Deposits from the Homepage.
2. Choose the payments you wish to combine in the Payments to Deposit window. Next, choose OK.
3. Choose the desired account to receive the deposit from the Cash back goes to dropdown in the Make Deposits window.
4. Enter the desired amount to be deposited into the account. To move everything at once, enter the whole amount of the deposit. The account you choose from the Deposit to section will get the remaining amount if you don’t deposit the entire amount.
5. Once finished, choose Save and choose.

How to Deposit Cash into QuickBooks Desktop Cash Account?

Step 1: Open QuickBooks and Create a Cash Account

Setting up a specific cash account in the program and creating a platform for cash transactions and management are the first steps in putting money into the QuickBooks Cash Account. 

1. To create a new account, go to the Chart of Accounts area.
2. After logging into your QuickBooks account and choosing “New.” Designate it as a “Cash” account.
3. Select “Bank” as the account type.
4. Give it a fitting name, such as “Cash Drawer” or “Petty Cash,” and establish an opening balance that corresponds to the first amount of cash. 

For easier tracking and reporting, make sure the account is correctly categorized and connected to the right bank.

Step 2: Record the Cash Deposit

After creating the cash account, users can enter the cash deposit into the QuickBooks Cash Account, which guarantees precise tracking and distribution of actual dollars. To accomplish this: 

1. Go to the ‘Banking’ menu and choose ‘Make Deposits.’ 
2. Next, choose the applicable account and enter the deposit amount, date, and any other pertinent information. 

To keep accurate records, it is important to make sure that the amount entered corresponds with the actual cash deposited. Verifying that the deposit corresponds with the matching bank statement strengthens the procedure even more. 

Conclusion

In order to keep accurate financial records and guarantee the integrity of your company’s accounting system, you must record deposits in QuickBooks. Making sure that all deposits from sales to refunds to other sources are accurately entered will help to guarantee that your financial records accurately depict the current health of your company. 

This facilitates efficient cash flow management and makes the month-end or year-end closing reconciliation procedure easier. QuickBooks’ user-friendly interface efficiently tracks and organizes deposits, reducing errors and increasing productivity. Acquiring proficiency in this area of QuickBooks will enable you to keep accurate financial records, which are necessary for long-term business growth and making smart decisions.