QuickBooks Online deposit form, get ready to start moving on up with QuickBooks Online. We’re going to be using the free QuickBooks Online test drive searching in our search engine for QuickBooks Online test drive, choosing the option that has intuit.com in it into it being the owner of QuickBooks,
we will be using the United States version of the software and verifying that we’re not a robot. Zooming in a bit by holding down control up on the scroll wheel currently at 120 5%, zoom in noting that if I hit the cog drop down, we’re currently in the accountant view as opposed to the business view, we’re going to be duplicating some tabs to put our reports and as we’ve done every time,
right click on the tab to duplicate it, right click in the tab again, to duplicate it again, tab to the left as the tab to the right is thinking we’re going to go to the reports down down below. And we are choosing the balance sheet Report tab to the right and reports on down below.
This time the profit loss the PTL, the income statement and scroll up top, we’re going to do the range change change in the date range, we’re going to go from a 1012 to January 1 2022 to 1231,
two to December 31 2022, and run it and then I’m going to close the hamburger tab to the left, and then scroll up changing the range from a 101 to two to 1231 to two tab January to December 2020.
To run it to refresh it close the hamburger. That’s the setup we do every time go into the tab to the left.
And then hitting the drop down. We’ve been focusing in on the customer side side of things the sales cycle, the revenue cycle, noting it will change depending on the type of industry that we are in or it will be different for different companies. In other words,
the easiest cycle you might have is if you’re just getting money from like YouTube, or gig work or Amazon, and it’s coming from the platform, you might use bank feeds to simply deposit it with the use of in essence of deposit form.
So if you have that type of business, and you’re you’re recording your sales transactions, you’ll be basically generating deposit forms through the bank feed. The other way you might have things set up as you might have a cash register type of situation,
which would be a cash based system, but not one where you can wait till something clears the bank. And that case, you would be making the sales receipts at the point of sale, you would typically have some internal controls. So you would want to be tying out your sales records to the cash register,
for example, and then make the deposit in our system using the deposit form in such a way that it’ll be grouped in the same format that will be shown on the bank statements so that we can reconcile, and we could fit the bank feeds in that kind of area as well. We’ll talk about that more shortly.
And then we’ve been focusing in on the full service accrual system, which is the invoice so if you’re in a type of business where you have to do the work first and then invoice the client, then the invoice increases the accounts receivable,
then we would expect to receive the payment from the customer, we could record that receipt of the payment directly into the checking account, which in essence would be like a deposit using the receipt payment form like a deposit form,
or we might put it into undeposited funds, and then deposited into the bank. And then we would have to think about how the bank feeds are going to fit into that if we’re using those, and how the bank reconciliation will work in that scenario.
So let’s run through that scenario again. And then we’ll end up at the end of the cycle. So we’ll do the full accrual cycle ending up at the final stage,
which is of course money, increasing our checking account on the sales cycle of things. So let’s let’s first start off with an invoice we’ll make a couple of different invoices. So we can see some of the issues that could happen when we go through this whole process into the deposit inside of the money.
So let’s start with AAA. I’m just making up AAA again. So we’ve closed up the prior presentation. So we’re going to start over every time with fresh data. I’m not going to put any email address. I’m going to go through this fairly quickly because we’ve seen it in the past.
And I’m just going to say this as a service item. Let’s make it service one. I’m just going to say well, let’s add a new item. I’m going to say new item.
And then we’re going to add a service item. I’m just gonna call it service one item, copy that and description. I’ll say it’s for $230 Whatever, and it’s going to go to this service account, I’m not going to deal with the sales tax, no sales tax, turning that off,
and then done. And save and close. And so let’s say that we had, say, two of those, that comes out to 460. What’s this going to do? It’s going to increase the accounts receivable, because it’s an invoice by the 460, the other side is going to go to sales.
And that’s it. Let’s hit the drop down again, I’m gonna say instead of Save and Close, I’m gonna say Save and New and do another transaction. So another transaction, let’s say this is for BBB tab, setting up that one.
And this one, we’re going to say, same service item or selling service item one, and I’ll sell one of them this time for 230. This also is going to increase the accounts receivable other side go into the sales. Let’s save it and close it this time, save and close,
check it out on our financial statements balance sheet first, I’m going to refresh it. And then I’m going to go into the accounts receivable. And in the AR scrolling down, we’ve got the AAA the BBB, there’s the 460, there’s the 230 Scrolling back up, then I can go back.
And let’s go to the income statement, profit and loss and scroll down. And so now we’ve got the services here. Going into that item, there’s the services.
Scrolling back up and back to our report. Let’s go back to the first tab. Now let’s make actually one more, I’m gonna do one more invoice. And let’s make it for CCC.
This time, you might have guessed for CCC. And then save it. And then down here we’ll call it service item. And let’s say we sell three of these for CCC.
And same thing. So I’ll save it and close it. Now of course, we would then track that and expect to be paid on those items, we could track those in the sales area that we talked about in a prior presentation by looking all at all the sales transactions and sorting them, possibly by the open. Open Invoices, for example, could close this out open items.
So there’s those three, we can go to the invoices this way and look for the invoices, we can go to the customers and look for the items with the Open Invoices here there’s a a, b, b and c cc. The point is that we’re going to be receiving a payment on it in the in the next step.
So notice if I go to the receive payment, and we saw the receipt payment last time, it connects to the invoice so the receive payments going to decrease the accounts receivable and record the other side to some kind of cash account.
Normally we go to undeposited funds. Now we’re focusing in on the deposit side this time. So just note that you could put this directly into the checking account,
which would make the receive payment, basically like a deposit type form. So let’s just do that to see what it looks like in the sub ledger.
Now, you’d only want to do this, if this payment is going to be hitting your bank account in the same dollar amount, meaning you’re not grouping it with any other payments because for like cash or credit card groupings.
And that would happen if you got like an electronic transfer for that exact amount or like a check. So we’re going to save it and close it. And let’s just see what that looks like Save and Close.
So this is not exactly a deposit form. But in essence, functionality is the same thing. I’m going to run the report again, go into my checking account.
And let’s see what that one looks like scrolling down in our data. So there’s the AAA payment. Notice that it’s in here, it’s increase in the checking account, but it’s not a deposit.
Now the reason I point that out is because when you sort your data if you filter your data, notice that the checking account has a many different kinds of transactions in it, it’s often the case that you might want to try to sort your data by increases and decreases.
And if you have to include the payments as like a deposit, it’s one more thing you kind of have to think about, I’d kind of like to have all the deposits either be or increases the either deposit type transactions or or transfers.
So that’s one thing to kind of consider but you should be able to tie this amount out to your bank feeds. So you could connect the bank feeds if you have them turned on to to this amount because when it goes to the bank, you can basically tie it
out here so it should still work as long as you don’t have a grouping kind of problem. If I go into that. Then that goes into my might receive payment,
which functionality kind of work like a deposit form, okay closing that back out, Scrolling back up. And there was that the other side of it went to the accounts receivable, if I go into the AR, we can see the accounts receivable goes up and then down for that amount.
Now the other two, let’s, let’s assume that we’re going to use the other method for the other two, and put them into undeposited funds, and then deposit them.
And we’ll talk about why to do that. So let’s go to this one, let’s go to BBB. Let’s say we just received payment for this one. And I’m going to say BBB to 22,
I’m going to say this time, I’m going to put it into undeposited funds, that’s going to be a clearing account, a grouping account, it’s not going directly into our checking account yet, because I have an issue one or a couple of reasons you could be one,
I have an issue with groupings to make sure I group it in my checking account in the proper way that it’s going to show up on the bank statement and to maybe I just like to see all my checking account to have an actual deposit form for the increases, instead of having the received payment form.
So I’m going to save and close. And then the other one was that owed us money with CCC receive payment. And so we’ll do the same thing here, it’s gonna go to undeposited funds.
So let’s save and close that. So now those two items went into undeposited funds, let’s check that out. Go into my tab to the right. And I’m going to go to the Run Report. And if I go into my my undeposited funds, there’s this clearing account.
Now note, this is is basically a cash account what you would expect to be up here in the checking account. It’s down here because it’s not functionality working in the same way as the checking account. You’re not connected to bank feeds and everything. But this is basically cash that you’re holding on to or don’t want to put directly into your checking account until you group it in the proper format.
And when you put it into the checking account, you want to do it in such a way that it’ll tie out to the bank, which you can match with the use of the bank feeds or with the bank reconciliation process. So so that undeposited funds was impacted with that last transaction. So here are those two, and then if I go back, up,
the other side went to the accounts receivable went down, and it went into undeposited funds. So okay, so now we’re going to make the deposit into the checking account with a deposit form.
Now, note when you when you think about the deposit form, if I hit the plus button, you can see it’s actually over here on the right hand side, it’s not in the customer area, you would think that basically it’s part of the customer cycle,
the sales cycle, but there are times when you might get a deposit that’s not coming from a customer such as for example, you the owner puts money into the company, you want to make sure that that gets recorded not as revenue. And then you might get a loan, for example, which might be a deposit,
that’s not going through the customer cycle. But hopefully, most of the deposits are coming through the customer cycle. So if you’re going to be entering, like like a deposit that’s going through undeposited funds, so anytime I’m entering a deposit, that is going to be going through this account of undeposited funds, then I’m going to want to use this deposit form.
Generally, that’s the general rule, because it’ll have another little item within it to basically group those deposits together, we’ll see in a second, if you have another kind of deposit,
such as such as a deposit that’s coming from you, the owner, or from the bank, or then it’s not tied to this grouping issue, you might just go right into the check register.
So the check register could be the easiest way to enter a deposit or the bank feeds, right the bank feeds can come through if you don’t have an issue, and you can record the transactions with a bank feed. But for now, we’re going to assume that deposit,
we’re looking at these deposits that make up that that 2982 52 In undeposited funds. So let’s open the bank deposit form. And you can see that right here, there’s the two nine a 252.
That’s the amount in undeposited funds. These are the transactions right here that make up that amount that are coming through from either the receive payments, or the sales receipts, which are like the credit which are like the cash register type of transactions.
So now we’re able to say okay, I’m going to take these two items right here, because I’m going to deposit those two items together into the system. And that’s going to be the purpose of this because why would I do that? Because now it’s going to show up on the bank statement.
Because I physically deposited let’s say these two cash at the same time or these two credit card transactions got grouped together when they hit the bank account. I want them to show up on my system in the checking account as 920, not as 230, and not in 690.
Because if they’re two separate amounts, I won’t be able to reconcile either with the bank feeds or with the or with the the bank reconciliation, or at least not easily,
I’ll have to do added work. So that’s the point. So what’s this going to do, it’s going to be a checking account. So it’s going to be increasing the checking account, you could choose a savings account or multiple checking accounts, here’s the date that we would have tags, if applicable.
And now we’re taking these off. Now, if it was some other kind of thing, meaning like I was putting money into the system, then I can do the receive from here and just give the account, the account might be simply going into like an equity account, my investment account if I put the money in, or a loan payable. So I’ll talk more about that in a second.
Let’s record this Save and Close. So this is a deposit form. So it would do what you would expect, it’s going to be increasing the checking account. So if I go into the checking account, we’re going to say, Okay, I want to have an increase to the checking account of the deposit.
So there’s the 920, notice it’s in there as 920, not the two separate amounts, if I go into that amount, takes us back in to the source document of these two items being checked off right there. 920. And closing that back out.
Scrolling up to the top, back to my report, the other side is in undeposited funds, let’s run it again, I don’t think I refreshed it. It’s an undeposited funds, which isn’t yet down to zero, because it has some other items in it. But the undeposited funds is going to go up and then it’s gonna go down.
And notice here your it shows you the detail. So it’s in that allows you to kind of tick and tie. So it’s kind of nice, that shows you the increases and the decreases. So you can kind of tick and tie out the amounts here. So there’s undeposited funds, you go up, and then it should go back down.
Okay, so then if I go back to the to the first tab, the other ways that you might have a deposit is you the owner might put money into the business.
So if if I, if I was to I could do that with a deposit form, hitting the drop down, go into a deposit. And I could say instead of checking off one of these items, I’m just going to say, I’m not going to put a receipt from it, because it’s from me,
I can put the owner and I can put some kind of equity account would be the point here. So let’s say their owner’s equity, let’s say it would be like owner, Owner, owner investment.
And I’m going to I’m going to say that’s going to be an equity account. Owner investment. And there we go. So I set it up. Hopefully I set that up as an equity account. And then you can say the payment was $1,000 or something like that.
Payment Method payment $1,000. And, and the other way that you might get a deposit is a loan loan, payable, loan payable.
And you get, let’s say $2,000. So we’ll put so we might just enter a transaction into the system thusly. And you can use these items down below to do that, you want to make sure that if you’re getting if you’re the month one putting money in or if you got a loan, you didn’t record these deposits to an income account.
Otherwise, you’re going to overstate your income. And if you have income taxes, you’re going to be paying taxes on the money you got from a loan or investment, which isn’t good.
So if I record that, then of course, I go to my balance sheet, I’ve got an increase in the checking account. So the checking account should go up by those those amounts, there’s the deposit,
I put it into a lump sum, and the other side is not going to the income statement. But instead it’s going to the owner investment account and the loan payable account that we increased.
So that’s the other way we can enter a deposit. Now oftentimes, if I go to the first tab the other way you can enter a deposit that sometimes it’s faster or more intuitive to some people.
If you’re entering like a lot of deposits from a bank statement or something is to go to the register, which you can find by hitting the caret here, we can go down to the accounting and I’m going to see your chart of accounts. Close the caret now. Now the register is something we usually think about with the checking account.
But you have a register for every kind of balance sheet account the income statement accounts do not because they’re a different kind of account.
So I could think about it as increases or decreases to a register. So if I go into a register for example, I’ve got my drop down forms right here,
check deposit sales receipt that that that that I could choose a dip Acid. And then I can say that this is going to be whatever, I’ll just make a deposit of $5,000. Other side going to loan payable again just to practice loan payable.
And then if I record that, notice, if I go into the detail on it, it’s still a deposit form. So it’s just a quicker, kind of easier way possibly, to enter a deposit. So if you’re entering a lot of transactions, if I go into it, it’s still just a deposit form. And you could see it populated down here.
So a lot of times when you have a quick transaction field, like the register here, it will still not default to a journal entry, but a deposit form. And you’re even selecting, in essence, that deposit form just in a quicker or a little bit different layout for the deposit. And that’s the same with the bank feeds.
So lastly, let’s think about bank feeds, which under the accounting view is under the banking, and then on the bank feeds. If I close if I close up the hamburger, if you’re in like a gig work situation, and you’ve got the Receive Items.
Now note, if you’re not in a gig work situation, you’d have to match up your the money that you’ve received to like the invoice or to the received payment, or to the sales receipt, or to the deposit, you’d have to see where the where it’s gonna match up.
But if you’re just gonna record a deposit, and then just record it as income, because it’s gig work, like if you got it from YouTube, or something like that, and that’s how you’re going to run your system. Because you’re in a fairly simplified kind of accounting system,
due to the industry you’re in, then you could take the description, add the payee, for example. And then you could you could add the category, which would be some kind of income account.
Typically, if it’s coming from a customer, so I could say new, I’m just going to call it an income account, I’m going to say this is going to be just income test account, and save it. And then, and so now you’ve got your same data.
Now, once again, it’s going to basically record a deposit, because this is a bank feed. So it’s increasing. That’s what bank feeds have, they have increases or decreases to the checking account. But the format looks a little bit different here.
But when you go back into, it’ll just be a deposit. So once again, you’ve got the increase in the dollar amount that’s given to you by the bank, you’ve got the date,
which is basically which is given to you by the bank, and then you’re adding the payee, which hopefully you can find from the bank memo or description, and then you are adding the account based on what you got the money for. And that I can add that.
And if I was to go find that, let’s just go to the income statement to find it in the transaction was in 2023, apparently, oh 10123201, or let’s say 1230 123, run it.
And then so there it is. So if I go into that amount, and then there’s there it is, the point I’m trying to make here is that it’s still put it in place as a deposit.
So if you drill back down on it, then you’re still going to find a deposit form, it’s not going to be going to the the the form of the bank feeds not going to show you the same format of the bank feed.
So the takeaway from this I’m going to close this back out is that if you hit the plus button up top, remember that these forms, QuickBooks wants to use these forms to create the transactions.
And for good reason, oftentimes, because there’s often other things that are designed to help facilitate the ease of the accounting system by using these types of forms. So we might have some quicker ways to do data inputs, such as the use of registers, such as the bank feeds,
increases and decreases, but the system will probably still try to default to a form if there is a form that relates to the normal accounting transaction.
And that’s useful to know because it will allow you to get basically drill back down on the on the information from the financial statements and see what is actually happening as you as you enter the data into the system.
So the general rule is, if there’s a day to day kind of transaction, then one of these forms will be applied to it. If there’s not a form that applies to it, because generally, it’s not a day to day transaction, you want to think is cash affected.
Because if cash is affected, even if it’s not a normal transaction, such as me, the owner putting money into the business, or me getting a loan, those aren’t day to day transactions, then because cash is still affected,
I might be able to use like a deposit form or if cash was going down a check form or expense form. If it’s not a day to day transaction, and cash isn’t affected, that’s when you might need to new use the journal entry.
And that would be for example, if I bought equipment and I financed the entire thing or something like that. Now, that doesn’t happen every day, and cash isn’t affected. Therefore, I can’t use a default form generally.
And I’d have to go to the to the journal entry. Remember that all these forms, every financial transaction you do makes the journal entry. In that we have the double entry accounting system, two accounts are affected and so on.
But it’s going to be doing so with the use of the forms because that’s how the system is designed to work. And then you only default to actually a journal entry entering with debits and credits, if there’s no other form that we can use.
Okay, so now let’s hit the drop down on the cog and switch to a business view, and just see where some of the stuff is located under the Business View. So the homepage, the get things done page on the left was here, we still got the plus button up top, that’s where we have the invoice and the receive payment.
We’ve been working in the Get Paid area, which is the sales cycle, the revenue cycle, where we have the Get Paid information, we’ve got the customers, sorting our invoices, here is where we went, we have our invoices, that was sorted our items.
And then we also had all the sales transactions, which are in a different area, which is the banking or bookkeeping area. And so that’s under the transactions, you could sort all your sales transactions here. So we went into here possibly to find like our open invoices and so on.
And then we also had our bank feed information, which you would think would be under banking, but no, it’s also under the bookkeeping.
And then you’re gonna go to the transactions up top where it’s like bookkeeping, and then transactions and then you’re on the bank transactions tab up top, and then I’d have to close this out.
And then sometimes it does this on this test file. It goes into there, but then there’s your banking information. So once again, those two the two layouts are similar Have you know same areas, generally that’s just where they’re housed could change slightly