 QuickBooks Desktop 2023, deposit form. Let's do it, we're into it. QuickBooks Desktop 2023. Support accounting instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more, like QuickBooks backup files, when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Here we are in the QuickBooks Desktop Sample Rock Castle construction practice file provided by QuickBooks going through the setup process, maximizing the homepage to the gray area, going to the view dropdown open windows list on the left hand side, opening up the major financial statements by going to the reports dropdown, company and financial, P and L profit and loss, the income statement in other words, date change, range change, 01, 01, 24, 212, 31, 2, 4, January through December, 2024, customizing the report fonts and numbers, changing that font on up to 12, okay? Yes, please, okay. And then we're gonna go to the reports again, company and financial, open up the balance sheet this time. The other major financial statement changed to date 12, 31, 2, 4, 2, 4, customize it so we can change the fonts and numbers there too and make it 12 again, okay? Yes, okay. That's the startup process we do every time, going back to the homepage and prior presentations. We've been talking about the customer cycle. You also might know as the sales cycle, the revenue cycle, the accounts receivable cycle, the customers meeting with QuickBooks, the people that we expect to be receiving money from typically at the end of the cycle for goods and services we provide to them. Remember that we could be actually customers in real life, but from a QuickBooks standpoint, we're looking at one side of the table here. These are people that we are selling goods and services for and hoping to get paid at the end of the process. We talked about different formats that could be taken depending on our industry that we are in, such as waiting for the deposit to clear the bank and just entering a deposit form, possibly with the use of the bank feeds, could be done possibly with gig work or having a cash-based system where we have to then record the transactions as we receive them and then deposit them like a food truck possibly, or the full accrual system where we might use an invoice for work that we had done that we are billing or invoicing for, like an accounting business, law firm, landscaping or something like that. We're first looking through this full accrual process here. We talked about the invoice in the past and then we went to the receive payment. Now the receive payment was a little bit tricky, you'll recall, because we know that the receive payment is gonna decrease the accounts receivable. Let's talk about the whole thing. The invoice is gonna increase the accounts receivable, the other side's gonna go to sales. We're mainly concerned with the receivable then. Then we're gonna track the receivables to make sure that we get paid and we're gonna enter the receive payment when we get paid at that point in time. This part got a little bit tricky because it's possible that we deposit at this point in time with the receive payment form directly into the check-in account. If I go to this form, in other words, I could see that I could include an option here to the check-in account which we saw that we'd have to turn that option on in the settings we looked at in the prior presentation to have that option. So you could deposit it directly into the checking account there. However, oftentimes you wanna use the default setting which is to put it into undeposited funds. There's a reason that's the default setting and that's because it's possible that you're gonna get paid in such a way that you're gonna have to group those payments together and put them into the bank in such a way that they're gonna be shown on the bank statement. In other words, if you get cash payments, for example, then you might group those cash payments together that you got during the day and deposit them into the bank multiple cash payments from different customers and that's how it's gonna show up on the bank statement. If you deposit each individual customer payment in the books directly into the checking account, then it's not gonna match what's on the bank statement. You're gonna have to do some taking some calculations on the reconciliation. You don't wanna do that. You wanna make it as easy as possible. Same thing could happen with the credit card, for example, the credit card company might group multiple customer sales, put them into the bank account in a grouped format and you wanna make sure that you have a system together so that you are doing the same thing on your end so that you can reconcile and that's gonna be an important kind of point there. So then we got the deposit, the last part of the cycle you can see is the deposit form. Notice they put it over here in the banking section but they indicated with an arrow it's kind of related to the customer cycle and that's because most deposits we're hoping increases to our checking account are coming from sales in some way, right? We're hoping that they're deposits from customers but they might not be. We could have a deposit that happened because we put money in as the owner, investing money from our personal account into the checking account for the business or we might have got a loan, for example, those are the two main examples of a deposit that was not from a customer from the business in some way. So they kind of put it out here in between the two areas. Notice that that number two represents that we have something in undeposited funds. The something in undeposited funds is either from the received payment which we saw in the past or the sales receipt which we'll talk about in the future and you can see them reflected on the balance sheet with the undeposited fund account right here. So that's really a cash account. Notice it's not up here in the checking account area because from a Quick Book standpoint it doesn't act like a cash account meaning it doesn't have any special need. You're not gonna connect it to a bank feed or anything like that. So that's why they put it down here in this other current assets which is a little bit kind of funny because again you would group it in cash if you were to group all these things together typically but then it gets by double click on this and I say 010124. You could see that it's gonna go up with the payment and then it's gonna go down with the deposit. So what we're gonna do is remove it from undeposited funds if we're using this process and put it into then the checking account. That's where we left off last time that would be the normal process or the next step if I go back to the homepage of the invoice received payment to the deposit. Now also just realize that the deposit form you could think of it as the standard form that will be used anytime there's basically or pretty much anytime there's an increase to the checking account. You could use the sales receipt so it's not always a deposit form but the deposit form is typically the form that you would use for an increase to the checking account. So if you had a system for example which was the easiest system that you could use where you basically have a gig work situation and you're just getting paid by a platform you're not gonna invoice, you're not even gonna create a sales receipt in that case but you're just gonna wait till the thing clears the bank say like a YouTube channel that gives you a payment or something you wait till it clears the bank possibly with the bank feeds you add it into the system as a deposit then even though you're using the bank feeds it'll usually go into the system basically as a deposit. So that's another way that you might see that form. If you're entering deposits directly into the system and they're not connected to undeposited funds like you put money into the system yourself for example or you're recording deposits manually kind of into the checking account based on the bank statement or something like that then you might not, I wouldn't use this deposit form typically like if I double click on this or if I click on it it'll open up this window which will show those two items that went through either the receipt payment or the sales receipt. And if you don't wanna use those and you have another kind of deposit that you'll be dealing with you can click off of this and you could just basically record the form or the account that you're receiving from. In other words, this is gonna go into the checking account the date and then you've got the account that you're gonna receive it from. So if that's what you're gonna do sometimes it's easier to just use the register. So if I'm entering directly into the checking account I might just go to the register. So in other words, closing this back out you could find the check register here or you could go to the banking dropdown. This is how I usually do it and you could go to use register and then find the checking account and go into the checking account register. So in the checking account register you can enter a deposit. So for example, that's a journal entry but let's go up to a deposit here. Here's a deposit. So here's a payment. It's a payment. Here's just a deposit that was recorded. So you can enter basically the account down here. This one will split but you can enter the account down here. You can see the splits by going like this. Actually it's not opening the split. You can double click and see the deposit form. So there is that. And then you've got the deposit field. So this one is like kind of like a checkbook. So this is the easiest kind of area I think if you're just manually, if you're just doing a data input of a deposit but you could use the deposit form. I'm gonna close this back out. I would typically use the deposit form when I'm connecting the deposit meaning I would click on the form on the homepage when I'm connecting the deposit to the receive payment and the sales receipt because that number two once again represents the grouping these two items that I would like to match up. Meaning if I went into the bank and I grouped these together, like say these were two cash payments. They're not, but let's say there were two cash payments. If I deposited them together at one lump sum of 2,440, I wanna make sure that I record that properly on my end as one lump sum payment instead of as two separate payments if they're gonna record that way on the bank statement making my bank reconciliation comparing our books, what we did on our side to the bank side easy, that's gonna be the point. That's the whole point of that process. So if I close this out and I look at it, let's just look at a prior deposit. You can see you got the checking account here, you've got the date, you got the deposit, you got who it was received from. Now if this was connected to the sales receipt or receive payment, then it's gonna pull this information in automatically from say the payment that was received which was pulled in from the invoice because you recorded that in the invoice. So it's all connected, which is nice. It's going to the account of undeposited fund, which again, if this was connected, which this one looks like it was, would populate automatically. And then you've got the check number of, and then the payment is gonna be a check. And then, so these are the payments that we've received. We're not writing a check, we're having a deposit here. And then a class field, we'll talk about classes later, that's a specialty kind of area. And then the amount that we're receiving, notice we have two line items that were combined together. So we didn't deposit them individually, even if they were individual payments, if we combined them together depositing them into the bank at the one lump sum here. So what's this form gonna do? It's gonna increase the checking account and the other side is gonna be recorded to whatever account it's gonna be recorded to here, typically undeposited fund, if you're going through that process, or if you were the one that put money and you could choose some other account that would be like an equity account here, investment from the owner or something. So I'm gonna close this back out and let's drill back down from the balance sheet then and think about that end result. So let's double-click on the checking account. If I double-click on the checking account, change the date range 010124. So now we've got the deposits. Notice that the deposits are generally the things that are gonna be increased in the checking account. So that form, that one form is generally gonna be the main thing that increased the checking account. Although you could have a sales receipt, right? I mean, you could have a sales receipt and you could have a sales receipt and a receipt payment if you make these things go directly into the checking account. So we talked about that with the receipt payment, not so much with the sales receipt. We'll talk about that in the future. But if you go through undeposited funds, which is one of the nice kind of things and everything that's an increase is gonna be a deposit. If you drill down on the deposit, it takes you to that deposit form. Even if you enter the deposit with like a bank feed or with the register, which looks like a different data input form, it will still use this deposit form when you drill back on the data. So even if you use a simplified, smaller registered data input, it's still using a full deposit form, which is something you wanna just kind of keep in mind. So I'm gonna close that back out. So let's go to the balance sheet. So the deposit goes in. The other side will typically be coming out of undeposited funds, double-clicking on the undeposited funds, changing the range from a 101 to four. So now you've got the payments which increase the undeposited funds because we've received the payments from the customers and then the deposits decrease in the undeposited funds. So let's close this out. I'm gonna close this out here. And the main point, I'm going back to the balance sheet. Just note that when it goes into the checking account, I'm gonna change the date, 010124. Then you wanna make sure that when you have the deposit going into the checking account, I went all the way down to the bottom on 121224 here. So this 493612, double-clicking on that. The main point is if I had two line items, I wanna make sure that I've combined them together in such a way that it's gonna be recording on my side that will match the bank statement side, making the reconciliation process as easy as possible. Okay, closing this back out, closing this back out. Just note that if you are in a system where you have like a simple system where it's like gig work and you're waiting for something to go through the bank and then record the transaction, then typically your income is gonna be recorded or your deposit will be recorded at that point in time. You're gonna be dependent on the bank to record it. And then the other side will go to the profit and loss to an income line item somewhere down here if that was the system in like a simplified type of system, which you could do possibly if you had gig work, you're getting paid by a platform that you just wanna wait till it clears the bank and then enter it into the system. So if I go back to the homepage, note then that you would be using this deposit form to increase revenue, which isn't really what QuickBooks is designed to do because it's designed to increase revenue with an invoice or a sales receipt, even if on a cash-based system. So by doing that, you do limit some of your other reports possibly like sorting your information by customer or something like that, but it might be totally worth it in terms of the ease of that system if you get all your money from like a platform and it's an easy system to just wait till it clears the bank. So just note on that, you can use deposits in that way for gig work and also just realize that you can also think about other systems like if you had a full, a cruel system that we'll talk more about in the bank feeds, if you've got an invoice, could you wait till something clears the bank and then connect the bank feed to the invoice or could I enter the receive payment and then wait till something clears the bank and connect the deposit to the receive payments or do I just want to record all three which is typically what you will do in a full service accounting system and then connect the bank feed to the deposit that has already been recorded, not so that you can double record it but then you would just be checking that it has been recorded matching it which would be kind of more of a bank reconciliation kind of process or system.