I have a new client who is in the process of opening a business bank account but does not want to hold checks she has received for sales so she is depositing them into her personal account. Upon recording the invoice/sale and then trying to record the receipt of the payment I do not have to option to record the receipt to an equity account, which is where it should be. How can I "trick" QBO into doing this without making a mess. My first thought is to record it to checking as if it's a regular deposit and then do a journal entry to remove it from checking and put in into the equity account but this just seems messy and inefficient. I know we all have clients who periodically get cash payments and don't deposit all of it so there should be some way to do this. This makes me miss regular QB where I could just put things where they should go!!!
The way you explained it is the best way in QBO
make a deposit in the amount of the income - I would use the cash bank account and not checking
then pay a payment out of the cash bank account and use the owner equity drawing account as the expense for the payment
it is not main equity, the money supposedly came into the company, then she took it out, that is equity draw
Thanks. I figured that's what I would have to do. I just don't think it should be that way. Yes, I have separate Owner's Draw and Contribution accounts. I just wish QBO was more flexible so I could accurately record transactions. I thought it was supposed to make things easier, not harder and more time-consuming.
@Malcolm Ziman wrote:
"This makes me miss regular QB where I could just put things where they should go!!!"
There is no option to record a receipt to an equity account in QB Desktop either
several ways to do it, easiest is to use make deposits, check the money from the sales receipt and use equity draw as the cash back account
QBDT is flexible
"several ways to do it, easiest is to use make deposits, check the money from the sales receipt and use equity draw as the cash back account
QBDT is flexible"
Good idea. Thanks. You can do the same thing in QBO