Recording Cash Deposits with Square POS

Hi there, @richandreplenished.

I'm here to provide you with the best way to manage your deposits so your bank transactions will match to your cash deposits.

You'll need to deposit the transactions from your undeposited funds into QuickBooks Online.  This way you'll be able to match the transactions on your actual deposit. 

Let me guide you how: 

1. Select the Plus icon (+) on the Toolbar.
2. Under Other, select Bank Deposit.
3. In the Choose an account field, select the bank account to which to deposit funds.
4. If available, select the checkboxes of the transactions to deposit in the Select the payments included in this deposit or QuickBooks Payments sections.
5. In the Add funds to this deposit table, enter information about any additional items to include in this deposit, including who the item was Received From, the Account, Payment Method, and Amount of the item.
6. Select Save and close or Save and new.

For more details about this process, please check out this article: How to record bank deposits.

Once done, you can now match the transactions from your actual deposit. 

Here's how:  

1. On the Banking page, select the For Review tab.
2. Select the transaction to open it.
3. Select the Find other records or Find match button to open the Match transactions window.
4. Use options on the Show drop-down to narrow the transaction you're looking for.
5. Select all the checkboxes of the matching transactions, then verify if the total amount is the same as they downloaded transaction.
6. Select Save.

To learn more about matching transactions in QuickBooks, please refer to this article: Add and match downloaded banking transactions.

Also, here are some articles about the use of deposited funds in QuickBooks and how it works for your future reference: 

• How to Use the Undeposited Funds Account to Receive Payments in QuickBooks Online.
• How to Record Bank Deposits in QuickBooks Online.

If you need additional assistance with this procedure, feel free to reach out to our Customer Care Team. They have the tools to check on your deposits and guide you with the steps. You can reach them through the contact details found in this link: Contact the QuickBooks Online Customer Support team.

These resources should get you on the right track.

Please don't hesitate to reach out to me here should you have any further questions, I want to make sure you're taken care of. Thanks for coming to the Community and take care.

Hi @BettyJaneB,

Thanks for your reply. I may need to clarify further. My cash sales from Square are automatically synched to undeposited funds in QBO daily by commerce Sync. However, the amount I want to deposit doesn't always match what is sent from Square. For example, I may leave some of the cash in the register for change, or may need to use some cash to purchase goods. Also, my deposits are whole numbers so if Square says I made 450.27 cash I would only deposit the cash not  the change amount. I want to make sure everything matches.

I think I may have come up with a solution that may work. Let me know what you think of the following scenario?

• I'm thinking of creating a Petty Cash/Cash on Hand account
• I can have Commerce Sync deposit all cash received for the day to Cash on Hand account
• Then when I'm ready to make a deposit. (I need help here)
  • Could I just transfer the amount to my checking when I'm ready to make a deposit? I'm thinking this could solve my problem because the bank transaction should match the amount deposited.
  • Or, should I transfer the deposit amount from Cash on Hand to undeposited funds. And then make the deposit from undeposited funds?

One thing missing from the scenario is when the drawer is short or over. How would I account for over/short?

Thanks,

John

I appreciate the clarifications you've given, @richandreplenished.

Allow me to provide additional insights about this concern.

Transferring an amount from Undeposited Funds to a Petty Cash account isn't recommended. This is because it will not clear out the amount from the Undeposited Funds.

What you're going to do is to Deposit the amount and add a line item with a negative value for the expenses to be deposited. You can also create another deposit to be transferred on the Petty Cash account for the change in whole numbers that you wish to deposit.

To guide you with the process, please check out this article: How to set up petty cash.

Please let me know how it goes. I'll be around if you need additional assistance. Have a great weekend!

Hi @BettyJaneB,

I would like to make sure I understand. Say the following Cash Transactions are automatically added to my Undeposited Funds from Square using Commerce Sync.

• Day 1 - $100.27
• Day 2 - $167.89*
• Day 3 - $230.56

*On Day 2 we ran out of a product and spent $16.54 at local grocery.

The actual deposit amount would be as follows.

• $498.72 - Total cash collected over 3 days
• -  $16.54 - spent at grocery
• $482.18 - Available cash to deposit
• - $17.18 - Keep in Petty Cash
• $465.00 - Actual Deposit

When I go to undeposited funds it shows me the cash amount I collected over the 3 days as options to select for deposit.

• Day 1 - $100.27
• Day 2 - $167.89
• Day 3 - $230.56
• Total   -  $498.72

However, based on the scenario above, how would I record the following?

• Actual Deposit Amount - $465.00
• Grocery Expense - $16.54
• Petty Cash on Hand - 17.18

Thanks again for your time. I hope you have a Great Weekend also.

Appreciate the complete details of your concern, @richandreplenished.

I can help walk you through recording cash deposits in QuickBooks Online.

When your Square POS transactions were recorded in the system, it was recorded under Undeposited Funds. To record it as deposit to a specific bank account, here's how:

1. Click the Plus Icon.
2. Choose Bank Deposit.
3. In the Bank Deposit page, choose the specific bank account where you want the transactions will be deposited.
4. Under the Select the included in this deposit section, put a check mark on all the Square deposit transactions.   
5. Go to the Add Funds to this deposit section.
6. Enter the following negative amount transactions:
   • Grocery $16.54
   • Petty Cash $17.18
7. Click Save and Close.  

That should do it! This should allow you to record your income as deposit minus the expenses.

Feel free to visit the Community page if you have other questions about recording cash deposits and expenses. I'm always here to lend a hand.

Thank You @IamjuViel. 

This would make the bank account balance. However, should I be concerned with the following?

• Does the grocery amount show somewhere as an expense or COGS? For example if the grocery purchase was Strawberries.
• Does the Petty cash amount add to the petty cash already on hand?

Thanks,

John

@Angelyn_TThank You!

I have a couple quick follow up question. When would I use the cash back feature at the bottom of the deposit screen?

Thanks,

John

The Cash back goes to option is where you record a deposit to a different account type, richandreplenished.

For instance, if you receive a rent of $500 and you want to deposit the $400 in the bank and the $100 for yourself. You'll have to tell the program to properly account the $100 and use the Cash back goes to option.

You can check out this article for your reference: How to record bank deposits.

If there's anything else you need, please don't hesitate to reply. Thank you.