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Experienced Member

How to correctly record cash sales in QB Desktop

We have patients that sometimes pay cash for services we provide. The owner of the company on occasion will take the cash. Therefore, I am not depositing it into any of our business checking accounts. How do I correctly record this transaction? I had created a journal entry to debit cash and credit sales. However, when I do this and print out the P & L statement my cash shows as a negative amount. Thank you!!!

2 Comments
QuickBooks Team

Re: How to correctly record cash sales in QB Desktop

I can help you record the cash sales correctly, PWOP.

 

When you sell something or provide a service and get paid on the spot, record the sale with a sales receipt. Here's how:

  1. Click Customers.
  2. Choose Enter Sales Receipts.
  3. Fill in the necessary fields.
  4. Click Save and close.

If ever, you let your customers pay you at a later time, you'll have to create an invoice to record the sale. Then, receive the payment once they pay. 

 

You can go ahead and delete the journal entry and start creating the sales transactions to correct your Profit and Loss report.

 

Feel free to get back to us if you have further questions. We're here to help you out. 

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Re: How to correctly record cash sales in QB Desktop


@PWOP wrote:

We have patients that sometimes pay cash for services we provide. The owner of the company on occasion will take the cash. Therefore, I am not depositing it into any of our business checking accounts. How do I correctly record this transaction? I had created a journal entry to debit cash and credit sales. However, when I do this and print out the P & L statement my cash shows as a negative amount. Thank you!!!


For cash sales you usually use a sales receipt

then you deposit the funds in a cash type bank account you set up to track cash on hand

 

then if the owner keeps some, pay out that amount from the cash account and use owner equity drawing as the expense (reason) for the payment