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js_leonard48
Level 1

How to record interest on your bank account

I tried to record this as a deposit to the bank account, but the result was a negative amount reflected in the asset column of the balance sheet and no change to the bank account balance.

Solved
Best answer December 10, 2018

Best Answers
SkinnyRaven
Level 8

How to record interest on your bank account

There is an "interest earned" entry option from the reconcile window. Or make deposits will work. If your deposit did not work as expected it's likely the from account.

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5 Comments 5
SkinnyRaven
Level 8

How to record interest on your bank account

There is an "interest earned" entry option from the reconcile window. Or make deposits will work. If your deposit did not work as expected it's likely the from account.

pwlhcondo
Level 2

How to record interest on your bank account

Working in Online Simple Start there is no place to enter interest (as there was in desktop pro 2016)

MirriamM
Moderator

How to record interest on your bank account

QuickBooks Online (QBO) and QuickBooks Desktop (QBDT) are distinct products, each is designed with unique features tailored to different business needs. In QBO Simple Start, you can easily create a bank deposit to record the interest earned. Let me guide you through the process.

 

To start, let's create a new interest account to track the interest. Here's how:

 

  1. Go to the Gear icon at the top and choose Chart of accounts.
  2. Select New to create a new interest account.
  3. Under the Account Type column, select Other Income.
  4. Choose Interest Earned under the Detail Type column.
  5. Under the Name column, enter any name which is applicable.
  6. Select Save and Close.

 

After that, here's how to create a bank deposit:

 

  1. In the left menu, click the + New button.
  2. Choose Bank Deposit.
  3. Under Add funds to this deposit, select the customer’s name who paid the interest, then select the interest account you just created.
  4. Enter a description, payment method and amount.
  5. Choose Save and close.

 

For more detailed guidance on tracking deposits, check out this article: Record and make bank deposits in QuickBooks Online.

 

For upcoming tasks, I encourage you to regularly reconcile your accounts in QBO, ideally every month. This will help you stay on top of your income and expenses and quickly identify any mistakes. To help you with this, check out this article: Learn the reconcile workflow in QuickBooks.

 

In addition, we have a team of experts who can offer personal guidance on linking your accounts, automating tasks, and teaching the best bookkeeping practices to increase your efficiency. Check out QuickBooks Live Expert Assisted for more details.

 

I'm all ears should you have any concerns in handling your bank transactions, just click the Reply button.

pwlhcondo
Level 2

How to record interest on your bank account

Thank you for your response.

 

I guess I wasn't clear enough....in the desktop version I came from the interest and/or fees were fields on the initial reconciliation screen with the ending date and balance.

 

Ken

RCV
QuickBooks Team
QuickBooks Team

How to record interest on your bank account

Thanks for coming back, pwlhcondo. Let's discuss how the reconciliation feature works in QuickBooks Online (QBO). 

 

In the QBO Simple Start version, the option to enter interest and fees directly on the initial reconciliation screen is unavailable as you experienced with QuickBooks Desktop Pro 2016. However, we can still record these transactions differently before you start the reconciliation process. To record interest income and bank fees in QBO Simple Start, you can follow these steps:

 

  1. Click the + New Plus icon on the left-hand panel.
  2. Under the Vendors menu, select Expense.
  3. Choose the appropriate 'Payee' (usually the bank).
  4. Choose the payment account (e.g., the checking account).
  5. Select the account category for bank fees (typically 'Bank Charges' or similar).
  6. Enter the fee amount and any necessary details.
  7. Once done, press Save and close.

 

Then, we can record the interest by following the steps below:

 

  1. Click the + New Plus icon on the left-hand panel.
  2. Select Bank Deposit.
  3. Choose the bank account where the interest was deposited.
  4. Enter the Date of the interest income.
  5. In the Add funds to this deposit section, select the account category for interest income (typically 'Interest Earned' or a similar income account).
  6. Enter the amount of interest.
  7. Provide a description if needed.
  8. Once done, press Save and close

 

To learn more about this one, you can check out this article: Record and make bank deposits in QuickBooks Online. After recording these transactions, we can proceed with your reconciliation where the interest income and bank fees will be included in the transactions for the account you are reconciling. Here's how:

 

  1. Choose the account you want to reconcile.
  2. Enter the statement ending balance and date as provided by your bank statement.
  3. Match each transaction on your bank statement with those in QuickBooks, including the bank fees and interest income you entered.

 

By recording these transactions separately, you can ensure they are accurately reflected in your financial records and reconciliations. You can check out this article for more details about reconciling your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

 

Moreover, you can check out this article for more details about running a reconciliation report: How do I view, print, or export a reconciliation report?

 

The Community always has your back if you have other concerns with managing your bank transactions or any QuickBooks-related concerns. We're always determined to assist you with any concerns you have, pwlhcondo.

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