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Join nowI noticed in my company bank account that a unknown customer deposited 7k into our account and subsequently I had the bank wire them back the same day. How do I record the deposit and subsequent wire back out..
Thanks
Let me share some steps regarding recording your transactions in QuickBooks Online (QBO), Grimayoj.
In QBO, you'll need to create a new profile or category for the unknown customer. This way, it will be included as you record the Bank Deposit. Afterward, you can create an Expense transaction since you've mentioned that your bank wired them back.
Here's how:
Step 1: Create a Bank Transaction
Step 2: Create an Expense Transaction
You can also refer to this material to learn more about recording a wire transfer: Record a wire transfer in QuickBooks Online.
Furthermore, you can deposit payments into Undeposited Funds to put them into payments before combining them into a deposit.
I'm always around to help if you have other concerns aside from recording a wire transfer. Just enter your inquiries in the comment section.
Wont I have an artificially high expense line on the P&L? And since we would be recording the deposit as a deposit that part of the transaction will not be on the P&L so my P&L for that month will not be a representation of what happened since there isnt an income transaction to offset the Expense.. is this the best way to handle this?
Thanks
We appreciate you getting back in the thread for clarifications, @Grimayoj.
I'll add information to help you keep your book accurate when recording wire transfers.
Yes, the process provided by my colleague is the appropriate way to record wire transfers.
Please note that you'll need to choose an income account related to the wire transfer when recording a deposit for the amount transferred into your bank, while the amount transferred out to your bank will utilize the expense account. This way, the income transaction will offset the Expense, which prevents you from having a high expense line with your Profit & Loss report.
For more information, refer to this article: Record a wire transfer in QuickBooks Online.
On the other hand, you might want to review this material for guidance on reviewing your transactions to ensure they match your bank and credit card statements: Reconcile an account in QuickBooks Online.
Keep us updated in the Community if you have additional questions when recording wire transfers or other related concerns in QuickBooks Online. We're always here to help.
So just to be clear... I received a wire from an unknown source into my company bank account.. My bank then wired it directly back to that unknown company... You were using the word "transfer" so I wasn't sure what you meant by that.
Thanks
So just to be clear... I received a wire from an unknown source into my company bank account.. My bank then wired it directly back to that unknown company... You were using the word "transfer" so I wasn't sure what you meant by that.
Thanks
I appreciate you for getting back to this thread, @Grimayoj.
The transfers mentioned by my previous colleague above are wire transfers. Since the money was sent back to the unknown customer after depositing it, it can be considered a transfer.
To record this, you can enter a bank deposit in QuickBooks Online (QBO) to account for the money sent to your account. Then, enter an expense transaction to record the amount being wired back to the unknown customer. For the detailed process, refer to the steps outlined by my colleague, IrizA.
I also suggest contacting your accountant regarding your Profit and Loss concern to ensure your books are balanced and accurate. If you're not associated with one, visit our ProAdvisor page to look for a professional near your area.
Furthermore, QBO offers a variety of reports to help you get an overview of your business, allowing you to see how your sales and expenses are performing.
Please know that the Community is open 24/7 to address any follow-up concerns you have about recording deposits and wire transfers. Simply mention me in your reply, and I'll get back to you promptly. Stay safe, and have a good day.
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