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Highlighted
Level 2

How do I end up with minus cash?

OK, so I probably shouldn't even have considered using this software and just carried on with a Google sheets spreadsheet :-/

 

I sell Avon. I order, I deliver, I pay Avon. Not a complicated business.

 

I've spent all day reading articles, watching Youtube videos and generally cursing the universe. My dashboard currently shows 

ENDING BALANCE
£-3,257.51 in my cash account.
I do not have a bank account for this business, linked or otherwise. I'm paid in cash, I toddle to the Post Office, I hand pretty much all the cash over.
 
Obviously I've not got this set up correctly. I have successfully sent myself 137 emails today though (I had to assign every customer my email address lol)
 
Should I just delete the whole thing and crawl back into a corner. The TV ads made it look so easy...
Solved
Best answer 12-26-2019

Accepted Solutions
Highlighted
Moderator

How do I end up with minus cash?

I know the struggle of using a product that is new to you. You'll learn more as you use QuickBooks Online, peacehavenavon.

 

The details you've provided are very useful so we can get to the bottom of correcting your data. Based on those details, I'd agree that there's a problem with the set up or the process.

 

I'd recommend reviewing how the products or items were set up. Here's how:

  1. Click the Gear icon in the upper-right corner and select Products and Services.

     
  2. Look for the item and click Edit.
  3. In the Product/Service information drawer, go to the Income account field. Make sure it has the correct income account.
  4. Update it to the correct one if necessary.
       • For Service and Non-inventory items, you can update the historical transactions by checking (✔) the Also update this account in historical transactions box.
       • For Inventory items, you'll need to open each transaction to update the details.

     
  5. Click Save and close.

If your bank register's balance is still negative, it is possible that you haven't deposited all your sales transactions. I've noticed this when you mentioned that some are showing as deposits or payments.

When you pay an invoice, you'll have an option to select where you want to deposit the payment.

  • If you select your bank account in the Deposit to field, the payment will directly affect your bank register.
  • If you select the Undeposited Funds account in the Deposit to field, you still need to create a bank deposit.

Here's how to create a bank deposit for your sales transactions:

  1. Click the + New button on the left menu and select Bank deposit.

     
  2. In the Bank deposit window, go to the Account field and select the bank account.
  3. Go to the Select the payments included in this deposit section and mark (✔) the payments.
  4. Click Save and close.

That should create a positive impact your bank register.

 

If you wish to start over from scratch, there are different ways to do this. You can check out this article for the detailed information and steps: Delete Your Data And Start Over In QuickBooks Online

 

You can also reach to your accountant about your concern . They can give you a few advises aside from what I've mentioned above.

 

You have us if you still need more guidance in navigating QuickBooks Online. Happy holidays!

View solution in original post

5 REPLIES 5
Highlighted
QuickBooks Team

How do I end up with minus cash?

I can help you figure it out, peacehavenavon.

 

Before anything else, I'd like to thank you for choosing QuickBooks Online.

 

Let's check if you've added an opening balance when you set up your cash account. It's one of the reasons if there are lots of expense transactions and the balance is zero.

 

Also, we need to make sure to record all your money in transactions. This is to keep your account balance updated. You can create an invoice and apply a payment, or create a sales receipt.

 

Keep your posts coming if you need more help.

Highlighted
Level 2

How do I end up with minus cash?

Thanks for your reply, especially on a holiday day! 

 

i think I'm just too thick for this.

 

I started with a zero balance.

 

I added my invoices from Avon, all good

 

I'm obviously doing something very wrong when I record payments and don't have it set up correctly for sales. I have stock but no sales, just a negative cash balance. The cash account is all mucked up too. some invoices are showing as deposit, some as payment. I have no customer invoices outstanding but figures just seem to land randomly in the cash account. Pretty sure I didn't pay the customers for ordering from me but the accounts suggest that's exactly what I did.

 

Is there a way to roll it back to before I invoiced anyone?

Highlighted
Level 2

How do I end up with minus cash?

Is there any way to pay someone to set this bloomin thing up for me? Once it's set up I can probably keep going but setting it all up is way beyond my complete lack of accountancy qualifications

 

Highlighted
Moderator

How do I end up with minus cash?

I know the struggle of using a product that is new to you. You'll learn more as you use QuickBooks Online, peacehavenavon.

 

The details you've provided are very useful so we can get to the bottom of correcting your data. Based on those details, I'd agree that there's a problem with the set up or the process.

 

I'd recommend reviewing how the products or items were set up. Here's how:

  1. Click the Gear icon in the upper-right corner and select Products and Services.

     
  2. Look for the item and click Edit.
  3. In the Product/Service information drawer, go to the Income account field. Make sure it has the correct income account.
  4. Update it to the correct one if necessary.
       • For Service and Non-inventory items, you can update the historical transactions by checking (✔) the Also update this account in historical transactions box.
       • For Inventory items, you'll need to open each transaction to update the details.

     
  5. Click Save and close.

If your bank register's balance is still negative, it is possible that you haven't deposited all your sales transactions. I've noticed this when you mentioned that some are showing as deposits or payments.

When you pay an invoice, you'll have an option to select where you want to deposit the payment.

  • If you select your bank account in the Deposit to field, the payment will directly affect your bank register.
  • If you select the Undeposited Funds account in the Deposit to field, you still need to create a bank deposit.

Here's how to create a bank deposit for your sales transactions:

  1. Click the + New button on the left menu and select Bank deposit.

     
  2. In the Bank deposit window, go to the Account field and select the bank account.
  3. Go to the Select the payments included in this deposit section and mark (✔) the payments.
  4. Click Save and close.

That should create a positive impact your bank register.

 

If you wish to start over from scratch, there are different ways to do this. You can check out this article for the detailed information and steps: Delete Your Data And Start Over In QuickBooks Online

 

You can also reach to your accountant about your concern . They can give you a few advises aside from what I've mentioned above.

 

You have us if you still need more guidance in navigating QuickBooks Online. Happy holidays!

View solution in original post

Highlighted
Level 2

How do I end up with minus cash?

Bingo!

Income account should have been "sales of product income"

Changed "stock" to "purchases: cost of sales"

 

and now it sort of looks about right so I'm going to turn it off and sleep!

 

Thank you so so much!