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CT58
Level 2

Cash payments

Can I deposit a cash payment directly into Owner's Draw?  I don't see that listed as an option in the "Receive Payment" window in the drop down box for "Deposit to".  I don't think I want to create another Owner's Draw account.  In fact, I don't think I can.

 

What would be the best way to account for a cash payment that was directly pocketed for personal use?

Solved
Best answer September 16, 2020

Best Answers
Rustler
Level 15

Cash payments

You have to account for the money in the business accounting books, so deposit the funds to the cash type bank account.

then write a check on the cash type account to yourself and use owner equity drawing as the expense (reason) for the check.  (a check is just a data entry form)

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3 Comments 3
Rustler
Level 15

Cash payments

You have to account for the money in the business accounting books, so deposit the funds to the cash type bank account.

then write a check on the cash type account to yourself and use owner equity drawing as the expense (reason) for the check.  (a check is just a data entry form)

View solution in original post

Angelenestory
Level 1

Cash payments

Hi there! Do you know how to record past cash payments? I've been adding them as cash and then QB creates an invoice. They are all sitting as undeposited at the moment. Wondering if this is okay. Thank you for any help!

Angelene 

Joesem M
QuickBooks Team

Cash payments

Hello there, @Angelene.

 

Yes, what you did is the correct way of recording the cash payments. Also, as long as it hasn't been deposited to the correct bank account then leave the transactions in the Undeposited Funds. 

 

In case you need to deposit the transaction, you can create a Bank Deposit for this. To create a bank deposit, here's how:

 

  1. Select Bank Deposit from the + New icon.
  2. On the Account section, choose a bank account where you want to deposit the amount.
  3. Select the checkbox for each transaction you want to combine.
  4. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  5. Click Save and close or Save and new.

 

To learn more about recording deposits, refer to this article: Record and make Bank Deposits in QuickBooks Online. It also includes a video tutorial for visual reference.

 

Also, I'd like to share this reference that you can check out to guide you in managing your bank transactions together with smooth reconciliation: Categorize and match online bank transactions in QuickBooks Online.

 

Know that you can always get back to me if there's anything else that you need. I'll be here to you. Have a good one!

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