I am setting up a QB account for a local business. They receive a bulk bank deposit from the government after they send them billing for each of their customers (which is around 40 clients). The bank is connected to QB so the deposit is automatically recognized when we update it. I have a few questions:
1. Where does the bank deposit (income) get recognized? I'm currently throwing it in our income account, for now.
2. We need to be able to break out all the clients services via invoices and then receive payments against those invoices so we have a detailed view of what services and clients make up the majority of our revenue. So when I receive payment against these invoices, are we double booking income along with the bank deposits? Should it be either assigning the bank deposits "or" receiving payments? I know this sounds confusing but not sure which way is the correct way to recognize our income.
Thanks for any help in advance!
It’s nice to see new users here in the Community, jleigh37!
Thanks for elaborating the situation. You’re already on the right track; there are just some few steps we need to include in-between. I’ll be here to lend a hand.
When the earnings’ transactions are downloaded from your bank into QuickBooks Online, the default account used is Unrecognized Income. From there, the program already recognizes it as money-in type of deposits.
Your way of breaking out those customers’ services via invoices and marking them paid are correct. You only need to match those payments to the downloaded deposits to avoid duplicates.
I’ve added an article below for additional reference:
By doing these steps, you should now be able to manage those transactions without duplicates.
The Community is always here to help you with any QuickBooks concerns. Don’t hesitate to post here at any time and I’ll around.
Cheering you and your business to continued prosperity.
Thanks for asking this question. This has been my dilemma as well. Unsure how to handle these types of transactions. I did a google search on this topic and it brought me straight to this question/answer feed. So glad that Intuit's community comes up in google searches.
These are the kinds of stories we love to hear, @Angela Mays!
It’s awesome to hear that you’re having an easy time with our program, as our goals was to make it as easy to use as possible. With QuickBooks, taking charge of your financial tracking is as easy as a few taps and swipes of a finger.
If there are any features, you haven’t tested out yet, I think you’ll really enjoy our free video tutorials. They demonstrate how to find and use every aspect of QuickBooks Online: Video Tutorials for QuickBooks Online.
Also, be sure to check out these articles for tips on how to unlock the app's full potential: Help Articles for QuickBooks Online.
Always feel free to leave your post if you have other questions. The Community and I are always here to help.
Hi! Thank you for the answers you shared!
How about if you have already added the deposit and you want to match it to an open invoice? Like, the deposit has been made months ago and the previous bookkeeper did not match it and I have to match it now because if not I will only create a duplicate transaction for it thru receive payment. Thank you in advance!