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MeemawMickey
Level 1

How do I record interest earned in my Savings account

I just took over as bookkeeper for a small company.  I realized the interest coming into the Savings account is showing as an expense, so it isn't reflected properly in QB.  How can I change this and what category do I use?

1 Comment 1
Pete_Mc
Community Champion

How do I record interest earned in my Savings account

Look in your Chart of Accounts for an Interest Income or under and Interest Acct see if there is a Sub Acct called Interest.  The Deposit into the Checking and/or Savings Account should be associates with the Interest Income Acct.

 

Just to keep things organized, I have a main Income Account and then Sub Accounts for Interest, Consulting, etc.  The various Income goes to the appropriate Income Sub Acct.  But you can set them up as Primary Accounts if you want, it really makes no difference as long as the money shows as Income. 

 

NOTE: Although whomever was doing the books before put the Interest Income in an Expense Acct, don't change anything prior to 2022 without checking with your CPA/Tax Accountant.  They won't like it if you change their Year End numbers. 

 

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