How to Record Bank Deposits in QuickBooks Online

Welcome to the Fit Small Business QuickBooks Online training course. In this lesson, we’re going to cover recording deposits in QuickBooks Online. We will show you step-by-step how to record a deposit in QuickBooks Online and the impact recording deposits has on the financial statements.

To follow along with me, log in to your QuickBooks Online account now, or click the link below for a free 30-day trial of QuickBooks Online.

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To complete this lesson, you can either watch the video below, read through the step-by-step instructions, or do both. Let’s begin.

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Why Recording Deposits in QuickBooks Is Important

Payments received from anyone who is not a customer should be recorded as a deposit in QuickBooks. For example, a tax refund check, a rebate check from a vendor or an insurance claim check should all be recorded as a deposit in QuickBooks. This will ensure you are tracking all banking transactions, which will help you to reconcile your account at the end of the month.

Pro Tip: When depositing payments for your business, it’s imperative to use a business checking account that’s separate from your personal accounts. This will prevent you from commingling funds and potentially pierce the corporate veil. We compared a range of options for small business owners and Chase came out on top. First-time account holders are eligible for up to a $200 bonus.

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How to Record a Deposit in QuickBooks Online

There are three simple steps to record a deposit in QuickBooks Online. First, navigate to the “Quick Create” menu by clicking on the plus sign located on the top right section of the QuickBooks homepage. Second, select “Bank Deposit” right below the Other column. Third, complete the bank deposit fields and save your work.

Follow these steps to record deposits in QuickBooks Online:

1. Navigate to the Quick Create Menu

From the Homepage, click on the plus sign at the top and select “Bank Deposit” right below the Other column as indicated below:

Navigate to Quick Create Menu in QuickBooks Online

2. Complete the Bank Deposit

Complete the following fields for a deposit for Paul’s Plumbing, as indicated below:

Complete the Bank Deposit in QuickBooks Online

A brief explanation of what to include in each field is below:

1. Bank account: Select from the drop down of the bank account into which the check needs to be deposited.
2. Balance: This is the current balance in the bank account you selected.
3. Date: This is the date you will make the deposit. TIP: The date that appears here affects how this transaction shows up on your financial statements. Be sure to enter the date as close as possible to the actual deposit date.
4. Received from: Select from the drop down the person or business that you received the check from. If you have not set them up in QuickBooks, you can do so here by selecting Add new from the drop-down menu.
5. Account: Select from the drop down the account that you want to track this deposit. In the setting up the chart of accounts lesson, we walk through step-by-step how to set up accounts.
6. Description: Type a description in this field to record the purpose of the check.
7. Payment method: Select a payment method from the dropdown menu: cash, check or credit card.
8. Ref no.: If the payment method is a check, type the check number in this field. Otherwise, you can leave this field blank.
9. Amount: Enter the amount of the deposit.
10. Cash back goes to: If you plan to get cash back, select the account the petty cash is for (i.e., petty cash or cash register etc.).
11. Cash back memo: Indicate here if there is a specific purpose for the cash back.
12. Cash back amount: Enter the amount of cash back you plan to receive from this deposit.
13. Total amount: This is the total amount of the deposit less the cash back amount.
14. Save and close: Once you have completed all of the fields, save your work.

How to Review a QuickBooks Deposit

To review the QuickBooks deposit, navigate to the home screen and click on the check register button. Transactions will appear in date order, you can scroll down to locate the transaction you need to review.

Review a QuickBooks deposit after it’s posted by following these three steps:

1. Navigate to the QuickBooks Home Screen

From the home page, select “Transactions” and then “Banking” from the left menu bar as indicated below:

Navigate to the QuickBooks Home Screen

2. Navigate to the Check Register

Click on the “Go to Register Button” to display the check register, as indicated below:

Go to the Check Register in QuickBooks Online

3. Review the QuickBooks Deposit Record

Review the QuickBooks deposit information to ensure the date, account number, and amount are correct. If you need to edit any information, follow the steps in the next section, how to modify a bank deposit.

The most recent banking transactions will appear at the very top of the check register as indicated below:

Review the QuickBooks Deposit Record

How to Edit a QuickBooks Deposit

If you realize that you made a mistake after recording deposits in QuickBooks, you can easily make a change. Head over to the check register and locate the deposit you need to update. Make the necessary changes and save them.

Follow these steps to edit a QuickBooks deposit:

1. Choose the Deposit to Modify in the Check Register

Locate the deposit that you need to make changes to in the QuickBooks check register as indicated below:

Choose the Deposit to Modify in the QuickBooks Check Register

2. Make and Save Changes to the Deposit

Make the necessary changes and then click the “Save” button as indicated below:

Make and Save Changes to Deposit in QuickBooks Online

Impact of Recording Deposits in QuickBooks on the Financial Statements

When recording deposits in QuickBooks, it affects a couple of accounts and the balance sheet and profit and loss statement. The checking account is increased and the other income account is increased by the amount of the deposit. The balance sheet is affected because the checking account appears on that report as a current asset. The profit and loss report is affected because the other income account appears on that report.

When a deposit is recorded in QuickBooks, your accounts and financial statements are affected as follows:

Frequently Asked Questions (FAQs) About Recording Deposits in QuickBooks

We have included the most frequently asked questions about recording deposits in QuickBooks. If you don’t see your question, visit the Fit Small Business Forum and post your question there. One of our industry experts will promptly respond to your question.

The most frequently asked questions about recording deposits in QuickBooks are:

How do I record a deposit in QuickBooks without an invoice?

From the QuickBooks homepage, click on the plus sign which will display the “Quick Create” menu. Select “Bank Deposits” right below the “Other” column. Complete all the fields of information displayed on your screen to record a deposit in QuickBooks.

How do I record a loan deposit in QuickBooks?

Follow the steps below to record a loan deposit in QuickBooks:

1. Add a new account on the chart of accounts for the new loan:
   1. From the left menu bar, click on the “Accounting” tab and select “Chart of Accounts.”
   2. Click on the “Add New” button
   3. Leave the opening balance field blank
   4. Save the new loan account
2. Record the loan deposit:
   1. Navigate to the Check Register
   2. Click on “Add deposit”
   3. Complete the deposit date, amount, and select the loan account
   4. Save the deposit

How do I record an ACH deposit in QuickBooks?

Follow the four steps below to record an ACH deposit in QuickBooks:

1. Navigate to the Check Register
2. Select “Deposit” as the transaction type
3. Enter the deposit date, amount, account and type “ACH” in the reference number field
4. Save the ACH deposit

Wrap Up

That wraps up the section on how to record deposits in QuickBooks Online. The next lesson in our QuickBooks Online Training Course will be how to transfer money between accounts. In this lesson, we will walk you through how to transfer money between bank accounts.

If your business is still using a personal checking account for business purposes, check out our guide on free online business checking accounts. These accounts make it easy for startups to keep their funds separated and avoid commingling transactions.

To access this lesson or any of the others in the series, click the buttons below. You can also get started with a free 30 day trial of QuickBooks Online.

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