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Level 1

How to Record Bank Deposits in QuickBooks Online

I am trying to go through and update my quickbooks online for 2017 & 2018. How would I categorize Deposits from customers?  I do not create invoices from Quickbooks so it does not show that they owe us money. Do I have to go back and create invoices for all of my deposits? I am trying to make this as easy and quick as possible. Thank you!

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Level 15

How to Record Bank Deposits in QuickBooks Online

If you want to see these as Sales, you use Sales Receipts. You only use Invoice, because you want to see it as sales and to reflect they owe you and that you are anticipating the payment arriving later.

 

If you simply want to "do banking" as income, you don't have Sales data.

 

If you charge customers sales taxes, and don't use sales transactions and simply use the Banking tools to track this as income, you would be reporting Tax collected as your income, which means your own taxable income is higher for funds that were not your income. That is always a problematic situation. No one likes to pay income taxes on funds that are not your income.

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Level 10

How to Record Bank Deposits in QuickBooks Online

@PQI

 

"Do I have to go back and create invoices for all of my deposits? I am trying to make this as easy and quick as possible. Thank you!"

 

You don't need to create Invoices for the historical deposits. You can add as Sales Receipt directly from the Bank Register in QBO if you don't charge Sales Tax to Customers. It will create Sales Receipt in the backend. This is very easy and quick to do as you want, you can record 30 or more transactions within one-hour time. You will just to need to enter the date, customer's name and deposit amount.

 

Here is how to do it in QBO:
From the left Dashboard, select Accounting > Chart of Accounts > Select Bank account in question > Click View Register
Once you're on the bank register, select ADD Sales Receipt as transaction type from the drop-down arrow under the Date column. See the screenshot below for reference.

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add_sales_receipt.PNG

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