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asiaplk26
Level 2

How to categorize in banking?

How should I categorize payments from customers in banking? As a services income or account receivable?

3 Comments 3
CharleneMaeF
QuickBooks Team

How to categorize in banking?

Hello there, @asiaplk26.

 

If the payments aren't linked to any invoices, you'll want to categorize them as income. Otherwise, you may use the Accounts Receivable (A/R) account, so they'll be marked as a credit to the customer and apply them to open invoices.

 

Also, here's a quick guide on how to review and categorize your downloaded transactions in QuickBooks.

 

Additionally, you may want to consider learning the reconcile workflow in QuickBooks. This helps you keeps your QuickBooks accounts accurate.

 

Stay in touch with us if you have other banking concerns, asiaplk26. We're always here to help.

asiaplk26
Level 2

How to categorize in banking?

Thank you, the payments are linked to invoices. 

Could you answer another question?

We often pay for equipment rental, that rental is included in the customer invoice. Should we categorize equipment rental charges as an expense?

asiaplk26
Level 2

How to categorize in banking?

So Im changing category from services income to account receivable and the balance in qb gets smaller and the difference with bank account gets bigger. Why is that? What am I doing wrong?

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