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Kirthana_RAD
Level 1

Bank deposit and bank feed

Hello,

 

I am new to QBO, and I currently work for a non-profit and managing QBO. 

 

What would be the correct option if I have some checks (small donations from individuals) that I deposit to the bank, let's say, once I  week. Can you confirm or advise if the  steps that I should follow are the following: 

- create a Sale Invoice for each check (because each check is from a different donor) and choose 'Undeposited Funds' as Deposit to account

- create a Bank Deposit for the total amount of the checks and still use the Undeposited Funds? 

- use 'Match' when QBO downloads the bank feeds? 

 

I am a little confused :) 

 

Thank you very much! 

4 Comments 4
katherinejoyceO
QuickBooks Team

Bank deposit and bank feed

Hello there, @Kirthana_RAD

 

It's an honor for me to answer your concern about how you record donations in QuickBooks. 

 

To give you insights, you can record donations as a bank deposit, sales receipt, or an invoice for a non-profit business. 

 

First off, you'll need to create a revenue account to track the funds you received from donors rather than depositing it into the Undeposited Funds account. Here's how: 

 

  1. Go to the Settings menu, then select Chart of Accounts.
  2. Click New to create a new account.
  3. In the Account Type dropdown, choose an account type.
  4. In the Detail Type dropdown, select Non-Profit Income
  5. Enter a name for your account such as "Fund donations". 
  6. Select Save and Close.

 

Once done, you'll need to create a fund donation item on your product and service items page. I'd suggest you select the non-inventory part since your only receive money. Check out this article for more detailed steps: Add product and service items to QuickBooks Online.

 

Then, you're ready to track the fund donation as a bank deposit, sales receipt, or an invoice. See Step 5: Track the fund donation outlined in this help article: Track funds you receive from donors in QuickBooks Online.

 

Just in case, you can also read through this article for future reference: Set up and record in-kind donations. It helps you learn about recording donations for your business in QuickBooks Online. 

 

Visit us here in the Community if you need additional guidance, @Kirthana_RAD. I'd be glad to give you more ideas and help you with your other QuickBooks concerns.  

Kirthana_RAD
Level 1

Bank deposit and bank feed

Thank you! 

 

I think I got that, but I was wondering, after doing that, what is the best way to register a deposit from the bank of more than one check. 

 

So, for example, QBO downloads from the bank a deposit of 100 $, which was made of 3 checks, 30$, 20$, 50$ (anyway it only shows as 1 of 100$ in the bank). What is the best way to proceed with QBO? Should I create a sale receipt, then a deposit? Or just a deposit?

Kirthana_RAD
Level 1

Bank deposit and bank feed

Thank you! 

 

I think I got that, but I was wondering, after doing that, what is the best way to register a deposit from the bank of more than one check. 

 

So, for example, QBO downloads from the bank a deposit of 100 $, which was made of 3 checks, 30$, 20$, 50$ (anyway it only shows as 1 of 100$ in the bank). What is the best way to proceed with QBO? Should I create a sale receipt, then a deposit? Or just a deposit?

JessT
Moderator

Bank deposit and bank feed

Thank you for the details, Kirthana_RAD! I'll continue to help.

 

You are doing the right thing. You can continue recording individual donations as a sales receipt and create a bank deposit for the total amount. That deposit then becomes the matching entry to your downloaded transaction. This will work.

 

See information about matching bank transactions.

 

Feel free to go back to this thread if you have more questions in mind.

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