09 Mar Money – What To Do With It Once You Get It
Money – What To Do With It Once You Get It
One of the challenges we at Reconciled Solutions see most with business owners working with Quickbooks Online is how to handle bank deposits.
When possible, I like to enter checks while I have them in front of me. Then I have the date, check number, etc., which mitigates the chance for error.
HINT: If I have a batch of checks and am not sure if there is an outstanding invoice or not, I start with Invoices just to rule that out and keep it clean. Otherwise, you may document a sales receipt and leave an invoice unpaid.
INVOICE ~If the money is to pay an invoice already created, GO TO:
Sales / Invoices / Clients / Receive Payment.
Once you type in the customer name, all open invoices for that customer will be listed. This will give you an opportunity to enter all the information you have from the check. QuickBooks Online will match the amount to invoice(s) if possible. If there is no exact match, QB will post to the oldest invoice first.
SALES RECEIPT ~For money received on site (like when you go to the grocery store), or if you know outstanding invoices, GO TO:
Client / Create Invoice / Create Sales Receipt
Here you enter the item(s) sold and the amount that was paid. HINT: If you are entering sales for the entire day, create a customer called Daily Sales. This will allow a list of sales receipts for that customer name that makes locating them for easy future reference! **** One of my favorite tips is to create a memorized template for total daily sales entered from the “Z tape” at the end of the day! ****
BANK DEPOSIT ~The money documented above will default to an Undeposited Funds account and can be found here~ GO TO:
Banking – Make Deposits
Both payments received (for invoices) and sales receipts will be listed here in a window for Payments. Batch the checks as you take them to the bank by checking them off in this list. I like to run a tape on the actual checks and verify with the QuickBooks Online deposit.
Be sure you are depositing into the correct bank account and that the date is accurate. Once saved, you will find this deposit in your bank register (and on your bank statement at reconciliation time!)
If there is any confusion, let us at Reconciled Solutions help you. Knowing the difference between applying a payment to an Invoice vs. creating a Sales Receipt and when to use them can make life oh….so much easier!
(Author: Cathy Ramos)
