How to Record Deposits in QuickBooks?

QuickBooks is a powerful accounting software that is very useful for small and medium-sized businesses. If you are running a business, you should know how to properly record bank deposits in QuickBooks Online or the Desktop version. In this blog, we will tell you step-by-step how to record deposits and download QuickBooks Desktop, so that your financials always remain accurate.

Why is it important to record a deposit?

It is important for your business to:

  • All the deposits are recorded accurately
  • Match your bank transactions and QuickBooks data.
  • There should be no problem at the time of tax filing and audit.
  • Keep proper track of cash flow.

Benefits of Recording Deposits in QuickBooks

Properly recording deposits has several benefits that help your business accounting:

  • Income was proportionally categorised
  • Bank reconciliation becomes easy
  • Duplicate or missing payments are avoided
  • Get accurate financial reports during tax season
  • Analyzing the business performance becomes easy

How to Record Deposits in QuickBooks Desktop?

If you’re using QuickBooks Desktop, then open the desktop version on your computer, then choose the Company file in which you want to record the deposit. Now, you will see a Payments to Deposit window, and here you will see the list of all received payments that have not been deposited yet. Check the relevant payments and press OK. After that, the Make Deposits screen will be opened. Now select the deposit account here. Now it’s time to fill in the Date, Received From, Payment Method, Amount, and Memo fields carefully. After verifying all the details, click on “Save & Close”. Now your deposit has been successfully recorded!

How to Record Deposits in QuickBooks Online?

If you use QuickBooks Online, then log in with your user IDs. Click on New and select Bank Deposit. Then, in the “Account” section, select the bank account into which the deposit is going. Then you will get a list of all pending payments, and select the payments you are depositing. 

If you are making a direct deposit, then fill in the “Received From”, “Payment Method”, “Amount”, and “Category” fields. “Memo” and “Reference No.” are optional, but helpful for future tracking. After checking all the details, click on “Save and Close” or “Save and New”. QuickBooks Online now shows your deposit.

Ideas for Accurate Deposit Recording in QuickBooks

  1. Avoid duplicate entries: Once you have recorded a payment, do not deposit it again.
  2. use bank feed: QuickBooks Bank Feeds helps you download transactions automatically.
  3. Do regular reconciliation: Finding discrepancies is aided by monthly financial reconciliation.
  4. Use the memo field: Writing the source or reference of the deposit is helpful for future audits.
  5. Attach Receipts (Online Users): You can attach receipts in QuickBooks Online.

Conclusion

Accurately recording deposits on both QuickBooks Online and QuickBooks Desktop platforms is essential to the financial accuracy of a business. Your transactions should be clear, so that there is no problem in bookkeeping and tax filing. The procedures listed above will make it simple for you to record the deposit. If you still have any confusion, then contact our experts without any hesitation.

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