How do I record Interest earned from my bank?

when my boss earns interest in her bank account - do I make the payee my boss' name as vendor?

Thanks for visiting this thread, nonyanon.

Yes, you can make your boss the payee or vendor when recording interest earned from her bank. Even so, I'd still suggest consulting your accountant about this. They can provide expert advice on how to record interests in QBO. For instructions, you can use the steps outlined by my colleague above.

You might also want to visit our QuickBooks Online learning guides for tutorials and webinars about the product.

If you have any other follow-up questions about this or any QuickBooks questions, please let me know by adding a comment below. I'm always here to help. Have a good one!

I am trying to categorize the interest earned from my bank through the banking feature as I have my bank account connected to QB. When I go to categorize the interest I choose the interest earned category that was already made in the category groups. But as per usual when categorizing anything with this it needs to know the gst/hst for this transaction. What do I put? hst on sales/hst on purchases/zero rated sales/ zero rated purchaes/ exempt sales/exempt purchases/out of scope sales/out of scope purchases.

This is so silly but need to know sorry.

Hi there, @hal_ashley. 

I want to help share some insights regarding your question about the sales tax feature in QuickBooks.

 The GST and HST are default accounts and automatically created. Regardless you created your own GST and HST accounts, QuickBooks Online will still use the default accounts.

Looking at your situation, I recommend speaking with your accountant. They can check your tax setup and transactions linked to your concern.

You can also ask them about the proper procedure for recording the transactions that fit your business needs to avoid issues in the future.

I've added some articles about managing sales tax and bank transactions in QBO:

• Set up and use automated sales tax in QuickBooks Online.
• Categorize and match online bank transactions in QuickBooks Online.

If you have any other questions about recording vendor/customer transactions in QuickBooks, please feel free to add a comment below. I'm always here to help. Keep safe!

Hello,

I used to have the option to add the interest when I reconciled each month on both our checking and saving account.  But now those boxes are not shown when I try to reconcile.  I have cleaned out my history, cookies etc.  Any idea why this option is not showing anymore?  Both are set up as bank accounts. Thanks 

Hello there, @Lisa9801.

I'll share the reason why you're no longer seeing the option to add interest when reconciling your accounts so you can manage your financial data accordingly.

The Interest earned option is only available when your bank accounts aren't connected to online banking. Based on your description, I can tell that you've already connected both your checking and saving accounts. That's why the said option no longer shows when you reconcile in QuickBooks Online (QBO). 

Also, I encourage you to reconcile your accounts in QBO regularly (every month). This helps monitor your income and expense transactions and detect possible errors accordingly. You may want to check out this article as your reference to guide you in doing and fixing reconciliations in QBO: Learn the reconcile workflow in QuickBooks.

I'm all ears if you have other reconciliation and banking concerns or questions about managing transactions in QBO. You can drop a comment below, and I'll gladly help. Take care always, @Lisa9801.

I have done what you have listed but now how does the monthly interest get to my reconciliation page?

Thanks

Hi @KMK3 

This may sound really silly of me but I don't reconcile my accounts. AND my accountant is okay with this. So I don't know how to help you on this next step I'm sorry.

Hello, @KMK3. We appreciate you chiming in on the thread with your concern about the interest of your bank in QuickBooks Online (QBO). It's our pleasure to share additional information that clarifies your issue.

As my colleague ReaM shared, if you don't have the Interest earned option on your reconciliation page, it is due to your bank account already connected to Online banking. 

If you don't have the option to record it there, we can still record it by creating a new interest account and choosing a Bank deposit to post the amount. 

To create an account:

1. Go to the Accounting tab on the left side.
2. Select the Chart of Accounts, then hit New.
3. Below the Account Type column, select Other Income.
4. In the Detailed Type drop-down, choose Interest Earned.
5. Enter a specific name in the box.
6. Then tap Save and close.

After that, let's create a bank deposit to post the amount. See the steps below:

1. Click on the +New button.
2. Choose Bank Deposit.
3. On the deposit page, select the account you've created.
4. Enter the amount.
5. Then hit Save and close.

Please check out this article for reference: Record and make bank deposits in QuickBooks Online.

We'll be including these articles for future reference in managing your accounts in QuickBooks:

• Record and make bank deposits in QuickBooks Online
• Reconcile an Account in QuickBooks Online
• Learn the reconciliation workflow in QuickBooks.

We're always here for you if you have any other QuickBooks-related concerns. Have a fruitful business, and take care always, @KMK3!