How to Record a Deposit in QuickBooks Desktop and Online

Managing your business finances effectively requires accurate record-keeping, and one of the essential tasks is recording deposits in QuickBooks. Whether you use QuickBooks Desktop or QuickBooks Online, correctly entering deposits ensures your financial reports are accurate and up to date. This guide will walk you through the process of recording deposits in both QuickBooks Desktop and QuickBooks Online.

Why Recording Deposits Is Important?

Recording deposits in QuickBooks is crucial for the following reasons:

• Ensures accurate financial records
• Helps reconcile bank statements
• Keeps accounts receivable organized
• Provides a clear view of cash flow

How to Record a Deposit in QuickBooks Desktop?

Step 1: Open the Make Deposits Window

• Launch QuickBooks Desktop and log in to your company file.
• Click on the Banking menu.
• Select Make Deposits from the drop down menu.
• If payments are waiting to be deposited, QuickBooks will open the Payments to Deposit window. Select the payments you want to deposit and click OK.

Step 2: Choose the Bank Account

• In the Make Deposits window, ensure that the correct Deposit To account is selected from the dropdown list.
• If you have multiple bank accounts, choose the one where the funds are being deposited.

Read more: How to Create a New Company File in QuickBooks

Step 3: Enter Deposit Details

• In the Received From column, select the customer or entity making the payment.
• Under From Account, choose the correct income or accounts receivable account.
• Enter the Payment Method, such as cash, check, or bank transfer.
• Input the Amount received.
• If applicable, add a Memo for reference.
• If you have multiple payments in a single deposit, enter each separately on a new line.

Step 4: Save the Deposit

• Once all deposit details are entered, review the information for accuracy.
• Click Save & Close to finalize the deposit, or Save & New if you need to record another deposit.

Step 5: Verify the Deposit

• Go to the Banking menu and select Use Register.
• Choose the bank account where the deposit was made.
• Locate the deposit and verify that all details are correct.

Read more: How To Create an Invoice in QuickBooks Desktop

How to Record Deposits in QuickBooks Online?

Step 1: Navigate to the Bank Deposits Section

• Log in to your QuickBooks Online account.
• Click on + New on the left-hand menu.
• Select Bank Deposit under the Vendors section.

Step 2: Select the Bank Account

• In the Bank Deposit window, select the account where the deposit will be recorded.
• Ensure the deposit date matches the transaction date.

Step 3: Choose Payments to Deposit

• If the deposit consists of customer payments recorded in Receive Payments or Sales Receipts, you’ll see a list of undeposited funds.
• Check the box next to each payment included in the deposit.

Read more: How to Create an IIF File for QuickBooks Desktop.

Step 4: Enter Additional Deposit Details

• If the deposit includes non-customer payments (such as owner investments or loans), enter them under the Received From section.
• Choose the appropriate Account (e.g., Income, Loans, Owner’s Equity).
• Enter the Payment Method and Amount.
• If applicable, add a Memo for reference.

Step 5: Save and Review

• Double-check all entered details for accuracy.
• Click Save and Close or Save and New to finalize the deposit.
• To review the deposit, go to Reports, select Transaction List by Date, and confirm the deposit appears correctly.

Conclusion

Recording deposits in QuickBooks Desktop and QuickBooks Online is a crucial step in managing your financial transactions. By following the outlined steps, you can ensure accurate bookkeeping, streamline your reconciliation process, and maintain a clear view of your business’s cash flow. If you encounter any issues, consulting QuickBooks support or a professional accountant can help keep your records in order.