QuickBooks Pro Plus desktop 2020 to income from bank feeds and income categories. Get ready because we bookkeeping pros are moving up the hill top with QuickBooks Pro Plus desktop 2022. We are in our big fee practice file going through the setup process with a view drop down the open windows list on the left hand side, the company dropped down the home page in the middle maximizing it to the gray area.
Reports drop down company and financial going down to that balance sheet standard. We’re going to customize that report up top with a range change a 101 to one to 1231 to one fonts and then numbers changing the font size of bringing it up to 14. Okay, yes, please.
And okay, then go into the reports drop down again, company and financial profit and loss standard range change from Oh 101 to one to 1231 to one customizing that report fonts and numbers changing the font size bringing it up to 14. Okay, yes, please.
And Okay, one more time with the reports drop down this time in the accounting and taxes, the trial balance range changed from a 101 to one to 1231 to one, customizing that report fonts and numbers changing the font bringing it up to 14, we’re going to say okay, yes, please.
And okay, then the bank feeds center, go into the bank and drop down a bank feeds and we’re going to be selecting the bank feeds center only there. If you have bank feeds set up maximizing the bank feeds, we’re going to go back to the uncategorized items focusing in on the deposits. So I’m going to filter and filter by the deposits. And then we’ll say close that back out.
And now we’re going to do some categorizations of some of these types of deposits. So once again, we’re concentrating if I go to the homepage on the left hand side, and those kinds of the easiest types of deposits, the ones that we’re going to wait until they clear the bank before we actually record them as revenue, and then use those deposits to think about the different types of income categories we might have.
So if I go on to the profit and loss, we categorize the last one as the website sales. So we imagined we had sales, which I’m going to assume that sales is going to be the term I will use if there’s going to be inventory involved.
So those would be like inventory sales. The website sales, I’m going to assume are kind of sales for my personal website. And then I’m going to, I’m going to try to go through some of these and not break the rules, which I tried to set up last time, which is that you do not typically want to put income accounts on there by customer.
Because what you would like to do is put it on there by category, and then have the sub accounts break out the added customers that would be inside that subcategory. And you don’t typically want to put too much detail in terms of the things that you sell, such as inventory items, or too much detail on the service items you provide. Because once again, you would like to summary categories here.
And then the more detail you could break out in sub reports breaking up the income, by customer and by item, whether that be inventory item, or service item. So I’m going to go through here and just add a couple more categories from our list to get an idea of them.
So I’m going to I’m going to say down here, we’re going to say let’s just go through some of these Amazon, let’s say we have an Amazon item. And we have to add an income item related to that. So I’m going to say income item, it’s gonna be a deposit, we’re gonna say the payee.
Now notice Amazon has some differences. And you might have different type of things that you get paid from Amazon, you might sell stuff on Amazon, you might have Amazon Prime type of income, you might have other other things that you know a bunch of different things, apparently you get paid for.
With regards to Amazon, you could have books, of course that you have on Amazon, and then audio books would be on Audible, I believe. So here I’m going to start off by just saying this is Amazon. And also just realize that you might try to distinguish between the money that you’re getting from amazon for one thing, versus another thing by having a different customer name. And that will allow it make it a little bit easier possibly then to set up the rules, which we’ll talk about later.
That can distinguish one income item from the same customer to another. So I’m going to call this instead of just Amazon I’m going to call it.co amazon.co. And I’m going to say tab and we’re going to set that up with a quick set up. So quick add this will be a customer I’m going to set it up as a customer and then tab and tab.
The account that I’m going to assume it to be I’m going to assume that this is going to be for the Amazon Prime so basically for like kind of AdSense revenue from from Video content. So I’m going to call, I’m going to set up a new account, instead of just calling it like Amazon Prime income, which is kind of like naming the vendor, I’m going to try to put a category for video content, and then call it ad revenue, revenue, video content, ad revenue generally.
And so I’m going to set that up, might not be the best category, but they do do content, video content, and ad revenue, it’s going to be an income type of account. So I’ll make sure I change that this time income type of account. And then we’re going to say save it and close it. And then tab tab, and then we could set up a rule for that. So if I was to say I want to add a rule here, more details, we could set up the rule.
We’ll talk more about the rules later. Because this is a good example of something that we can have that distinguishing factor between one rule and another. So I’m not going to set up any rules for this time, I’m going to close it out and just record this instance of that one. And so let’s go ahead and add that. So add it.
Now it’s in the added to register area. Note that I can go to the customer drop down and go to the Customer Center. And now I’ve got this customer information so I can see kind of the detail by customer. So here’s the Amazon. Here’s the details related to it. There’s our deposit. Let’s close that out.
For now let’s go to the profit and loss. And now we’ve got our other categorization for the profit and loss for the video content in our categorization, which we can then again further break down by the by the actual customer, which which we saw over there in the Customer Center. Or we can run other reports for that.
So let’s go back to the bank feeds and say, then we’re going to add another one and say that like Google, let’s say Google, let’s pretend that Google here is for like YouTube, YouTube revenue generally. So I’m going to call this the PE E. Let’s say it’s Google AdSense, AdSense tab, I’m going to add this one quick add in the customer, it’s going to be a customer going to say okay, TAB TAB, and then the account,
I’m going to put it to basically that same account, video content, video content in AdSense, I’m going to put into that categorizing in one account now having two customers in it, we got Amazon and this one. Again, I could set a rule for this. But I’m not going to set the rule quite yet. We’ll do that later. I’m just gonna say add that one. And then if I go to the my profit and loss, I can go to my P and L.
And now we’ve got two items in this one account, if I go into that one account, we’ve got these two items in there, different names, different, different customers, in essence, we set them up as customers, I can close this out. And then I can see the detailed by customer, once again, by going to the Customer Center customer drop down Customer Center, and break it out in that way.
So now we’ve got the customer here, or we can run reports that will kind of give us more detail on these income accounts would be the report. Now note you would like to be able to see this also in a report.
But we’re not gonna be able to pull that out. In other words of report that you would expect to be able to break this information out by reports drop down, if I go to the sales item, and look at it from the sales by customers Sales by Customer detail, you would think it would populate here, oh 101 to one to 1231 to one.
But we only have that one invoice that we made, the ones that came through the bank feeds are not added here. And that’s because we don’t have the actual forms that are that are being populated. We’re only internet deposit form. In other words, if I go into the home tab, those reports are generally driven by invoices and the sales receipts and all we’re recording is a deposit.
So we’re not getting that added detail, you could add that added detail by creating a sales receipt and then matching it up. But that will take a little bit more detail in order to populate those reports. So we’re kind of losing a level of detail by going not only from a cash basis, but too reliant on the bank statements.
But you know, there’s going to be trade offs from the simplicity to to the details. So I’m going to go back on over to the profit and loss. In other words, if I was to double click on this item, the sales forms are usually a sales receipt or an invoice and we’re recording this sale with a deposit form.
Therefore those those sub reports are not picking it up because we’re not using the sales type of forms. But you still have the more detail if you go to the Customer Center into the customer center here and you can see the customers in that area. So let’s go back down to the bank feeds and see what else we got here.
Amazon, so we got amazon.com Let’s just imagine this one is for like book sales or something like that. And it’s a little bit different than the other one, which we said was the video sales. Now this one I’m going to call Amazon dot Come to distinguish it, even though it’s still Amazon.
And you might just call it Amazon because I want a different customer that I’ll be able to possibly use for a different rule up top. So I’m getting a little bit fancy in terms of the rules. We’ll talk more about rules later. But that could help me even though again, it’s the same customer, I might want a slightly different name to help me out with the automation.
So I’m going to say click Add. And this is going to be a customer. So I’m going to say, Okay, and so there we have it. Now the account, I’m not going to just put Amazon as the account. Instead, I’m going to try to call this as book revenue, book revenue on the account book, revenue.
Hold on a second, let’s hit the drop down. And let’s say new account and put it in here, this is going to be an income account that we will set up and I’m going to call it book revenue. And I should call it like royalties or something would be more more professional sounding, but I’ll call it revenue.
And I’m going to say save it and close it. There it is. And we could set a rule up for that one, distinguishing the rule, by having a different vendor that might make a little bit easier. We’ll talk more about rules later though, if I add that, then I can go back to my profit and loss. And now we’ve got these different revenue accounts by the things that we are doing.
So we’ve got the book revenue, the sales, the video content, and the website revenue. Let’s go back on over to the bank feeds and see what else we we’ve got here. We’ve got interest payment, we’ve got audible, so audible might be audio book revenue. So we can set that up by we could say okay, let’s set that up. And say we’re going to say this is going to be the payee, or Dibble and set that up.
Say we’re going to say a quick add here as a customer. And okay. And again, you’d be tempted to say, I’m just going to call this audible revenue. But it would probably be better to call it book, you know, audio, audio book revenue, instead something like audio book revenue.
And you might say, well, what’s the difference, because I’m not going to get paid audio book revenue, other than, than one this one company most likely. So you could see why you’d want to set it up by as a customer, maybe that would be appropriate. But the general rule said you wouldn’t set it up by the customer. So I’m going to say save it and close it audiobook revenue.
And we’ll add that one, we could set up a rule for that one too. But I’m just going to add it for now. And then if I go back to my profit and loss. So now we’ve got our categorize breaking out in the audio book revenue for the total revenue down here. And if we go back to the bank feeds, we could say,
Okay, what about what about PayPal, PayPal is that kind of issue, you got the issue of do I want to wait till it hits my bank account, and then record the revenue just using PayPal as a facilitator of the transaction, which could be useful, you could do that, especially if you only have one person that is paying you through PayPal.
But if you’re getting multiple payments through PayPal, and you’re paying for things from pay file, then it becomes more difficult to do that. And you would like to actually download the transactions because PayPal is acting kind of like a bank in that situation. And so we’ll try to add PayPal, basically, as a, as another institution, we can’t just link to PayPal, but we could possibly download the transactions from PayPal and add them in a similar fashion.
And then we could try to tick and tie off the intercompany transactions from PayPal. And so we’ll talk more about that maybe in a future presentation. Google, we’ve got interest payments, Audible, you know any, any other we’ll talk about other deposits possibly later. So there, so there, we got that. And the other one we have here is interest.
So if you’ve got interest income, then you might want to put that up top in revenue. But that might not be part of your normal operations. So you might say interest income, maybe I’ll put that in other income at the bottom. So I’m going to show let’s say interest income, the PE E is this, this is called the bank, the bank. And then I’m going to say Quick Add, it’s not really a customer or a vendor.
So I’m going to say other. And then we’re going to put this to the account of let’s say new account, add an account. And let’s call this one. Instead of an Expense Type, I’m going to put it down here, other income, not income, but other income. So it’s at the bottom because it’s not really part of our normal operations. Just call it let’s call it interest, interest income.
And then save that. And then this one, let’s let’s go ahead and add that here. We’ll say let’s add that. And then if I go to my profit and loss on that one, it’s not up here in my normal income items up here, but rather it’s down here in the interest income down below.
Because like the unrealized gains, it’s not really part of my normal operations. It’s just happens to be whatever the interest is over and above it. So here’s my net income from kind of normal operations and our imaginary kind of setup here. And then here’s going to be Other income that we have down below.
So that’s one way that you can categorize these, obviously these categorizations can can differ by the type of industry you’re you’re in, you might be in an industry where you just call in everything, just sales. If you sell inventory, you might just call it sales revenue. And then you could break out the other stuff that you’re selling, if you’re using the detail of the sales items.
Or you might have some information like if you’re doing these platforms and whatnot, you’re tempted to break it out by platform, which might, you know, in that case, be something that you could do. Or you might say that I’m going to try to break it out by the things that I am doing, given the larger categories here and hopefully using the other tools for the more detail. Although you are limited here with the other resources, you don’t have the sub reports that you would have in sales.
If you’re using the deposits forms as we have seen, you do have however, the customer information and the customer center to give you to give you that more information. In future presentations, we’re going to go back to the homepage here.
And imagine we have a bit more complex of a situation adding like if we’re collecting the money at a cash register, and therefore we have to enter it into the system or if we actually have to invoice clients that being on an accrual method that’s going to add a level of complexity.