How should I record a cash sale but not deposit it into my bank account?

Hi anthonyndoca,

Let me help you record your cash sale in QuickBooks.

You can deposit it to your Undeposited Funds account. It’s like a cash drawer in your chart of accounts where you can deposit all your cash sales before depositing it to your bank account. Refer to screenshot 1.

When you create a deposit, you’ll see the funds in this account ready to be deposited. Refer to screenshot 2.

Let me know if you have other questions about handing your cash transactions. Thanks!

JessT, I don't feel the question was answered. The question I think is: How to record cash sale to track the sale but never deposit funds in the bank? Does  Undeposited Funds has to be used?

Let me clear out the confusion, PAP2.

The cash sales can be tracked and deposited in the Undeposited Funds. This is an account which holds your funds until you're ready to deposit them at your real-life bank. Which means, you still have to deposit the payments to the appropriate bank account so QuickBooks will match with the bank records. 

You can check the article about Undeposited Funds that JessT provided. It'll help you better understand how the account works. 

Don't hesitate to get back to us if you have more questions in mind. 

@anthonyndoca 

In QB you should have a bank type account called cash, that is cash on hand, so make the sale and deposit to the cash bank account.  Then you spend it as you need to, or use equity draw to keep the money for yourself (assumes you are not taxed as a corporation)

I like this idea better than undeposited funds. Our business is a sole proprietorship so this will work. Some of the cash is used to purchase small supplies, owner's draw and some does get deposited in the bank. I thinks it would be easier to make an entry to move funds from a cash account to others as needed. Thanks for the input, much appreciated. 

I know this is an old post but I don't think this answers the question at all.  It's the same question I have, I receive money from a sale, then I take that money and put it in my pocket(draw or shareholder distribution), it never goes to the bank. If I I put it in undeposited funds then did a transfer of funds from undeposited funds to the bank, then my bank account would not match my QuickBooks ledger.  This money never sees the bank but I want to record it as a sale and income.  What is the best way to do that? 

Thanks for joining the thread, @Not_so_in_tuit_ive.

Yes, what you've mentioned is correct. Once you deposit the amount from the Undeposited Funds to the bank, it won't match your bank's statement since the money didn't go through to your actual account. 

I'd recommend following the suggestion that Rustler mentioned above. Simply create a cash account and deposit the funds in it. That way, your sales, and income will reflect in the Profit and loss report. 

Here's how:

1. Go to Settings ⚙ and select Chart of accounts.
2. Click New.
3. From the Account Type drop-down menu, choose Cash at bank and in hand.
4. From the Detail Type drop-down list, select Cash on hand.
5. Enter the name of the account.
6. Write down your opening balance.
7. Click Save and close.

Once done, make sure to reconcile your accounts regularly. This ensures the transactions agree with your real-life bank and credit card statements.

Please know that you can always get back to us if you have other questions. We're always here to help.

Cash at bank and in hand is not an option in my Account-Type drop down menu. 

Thanks for joining this thread and following my peer's response, @valeried1001.

Your options may be different. For the US QuickBooks Online (QBO) account users, you can choose Bank for Account Type. The Cash at bank and in hand is for the QBO UK version, and the other QBO rest of the world version can use the Cash and cash equivalent to select a Cash on hand detailed type account.

Please see the screenshots for visual reference:

QBO US

QBO UK


QBO AU & ROW

For your reference, you can check this article for more details about the main account types and how to add additional accounts: Learn about the chart of accounts in QuickBooks Online.

Do you want to hold customer payments before depositing them in your bank? You'll want to use the Undeposited Funds account later. Take a look at this article for more insights: What's the Undeposited Funds account and how to use it?

Let me know if there's anything else I can help about setting up your chart of accounts. I'm always ready to help you more. Stay safe and well.

Thank you very much for the reply. I was unware that there were different versions for different countries. I appreciate the feedback. 

10. A pub owner receives cash and card payments for their sales. When banked some cash is held back as a float for the till. How can you record this on one transaction?

A. Expense paid from cash
B. Sales receipt deposit to cash
C. Cash back option within a bank deposit
D. Transfer to cash

which one is correct?

Hello there, Mohibuzzaman.

I see how crucial it is to accurately record the process of holding back cash as a float for the till when making bank deposits. Let me provide an answer and share insights about this.

The correct option for recording the scenario you described would be option C (Cash back option within a bank deposit).

The Cashback option within a bank deposit in QuickBooks allows you to record the cash held back as a float for the till when depositing the sales proceeds. This accurately reflects the process of retaining a portion of the cash received as a float for the till, ensuring that the transaction is recorded appropriately in the accounting system.

If you continue to have uncertainties, I also suggest seeking advice from your accountant. This step is essential to guarantee the precision and correctness of your financial records and bookkeeping.

If you find yourself needing to record a cashback transaction to your credit card account in QuickBooks Online, this article can serve as your reference guide: How can I record cash back to my credit card account?

If you have any further questions about documenting cash and card payments, please don't hesitate to reach out. Wishing you success in effectively managing your transactions in QuickBooks

So if cash is kept as float vs deposited to bank do the “floated” need to be reconciled yes or no and how regularly.

also what account should “floated” funds be posted to?

It’s a pleasure to have you in this discussion, Nvalesoto. I see how crucial having a clear understanding of the reconciliation process and the frequency required for your floated funds in QuickBooks Online (QBO). I’m here to provide insights so you can feel assured and in control of your financial management.

Yes, it's important to reconcile floated funds regularly to maintain accurate financial records. The frequency of reconciliation can vary based on several factors, such as the volume of transactions, the size of the Float, and the nature of Expenses.

Generally, it is recommended to reconcile weekly or monthly to ensure that the cash on hand matches the recorded amounts in your account. This practice helps prevent discrepancies and keeps your financial records in pristine condition.

As for your second question, floated funds are advised to be added to a Petty Cash or Cash-on-Hand account in your Chart of Accounts (COA). This dedicated account allows you to keep track of the cash you have on hand for daily operations, making it easier to manage and keeping it separate from your bank accounts for better organization.

Furthermore, to help you navigate the reconciliation process with ease, I recommend bookmarking these helpful resources:

• Reconcile an account in QBO
• Fix issues the first time you reconcile an account in QBO
• Fix issues at the end of a reconciliation in QBO

Remember, I'm always here to support you. If you have questions or need further clarification on handling floating funds, reply below or create another post. I'll be more than happy to assist you and ensure a smooth experience with QBO.