Hi there,
Making sure you're adding your transactions correctly is a great way to keep your books clean. I'll be happy to help figure this out.
First, it's important to make sure you're using the correct bank account when creating the cheques. Another variable that makes a difference is your accounting method in QuickBooks. There are two types of accounting methods in QuickBooks Online; Accrual Basis and Cash Basis.
Accrual basis
- In this accounting method, the time when you enter a transaction and the time when you actually pay or receive cash may be two separate events.
- An accrual basis report shows income regardless of whether your customers have paid your invoices and expenses regardless of whether you have paid all your bills.
Cash basis
- A bookkeeping method in which you regard income or expenses as occurring at the time you actually receive a payment or pay a bill.
- A cash basis report only shows income if you have received cash and expenses if you have paid cash.
Knowing this info, you can now select which accounting method works best with your business. You can edit this by clicking the Gear icon > Account and Settings > Advanced > Accounting method to Cash > Save).
In case you need further assistance, feel free to contact our support team using this link here.
