 QuickBooks Desktop 2023. Bank feeds matching deposit from customers. Let's do it within two weeks. 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 QuickBooks Desktop Bank feed practice file we started up in a prior presentation going through the setup process we do every time in the view drop down we got the hide icon bar the open windows lists are checked off got the open windows that's open on the left reports drop down company financialists do the profit and loss the P to the L change in that range in a one oh one two two to twelve thirty one two two and then customize it and fonts into the numbers changing the font up to fourteen okay yes and okay reports drop down again going down to company and financial the balance sheet standard and then we'll customize it do that change of the range from oh one oh one two two to twelve thirty one two two and then fonts and numbers changing the font to fourteen okay yes and okay and then the banking going into the bank feed center which is only there if you got bank feeds turned on which we've done in a prior presentation so there it is I'm going to go to the unrecognized items going to sort this by the deposits and thusly and by this one okay then we're going to go back to the homepage we've been focusing in on the deposit side of things trying to first think about the easiest way we can build our financial statement simply from the deposits from the bank feeds and like something like gig work and now we're thinking about an accrual process where we have an invoice then we receive the payment then we make the deposit where in the world are the bank feeds going to fit into this process well normally at the end after we make the deposit in our system we match it up with the bank feeds however we've talked about in prior presentations how we can basically fit the bank feeds into the matching to the invoice invoice then wait till it clears the bank match the bank feed to the invoice the bank feed then recording the receive payment and the record deposit or we can enter the invoice and then receive the payment enter that match the bank feed to the receive payment for it to then create a deposit or possibly we can enter the invoice have the receive payment use the receive payment form to deposit directly into the checking account and then use the bank feeds to match out to the deposit that has been made with the receive payment form and now we're going to do the full service process which is probably the most common we will make an invoice increase in accounts receivable other side go into sales we will then receive the payment on it and we're going to make we're going to make two invoices here and then we're going to receive the payments on them and then we're going to make the deposit into our system imagining that we got cash payments that we are then going to deposit into the bank physically and then we're going to be able to check off using the bank feeds that would clear after we deposited into the system to match which would help us with the bank reconciliation and tying out our books to the bank which is more of a full service accounting system where we're doing our book keeping separate from the bank and then double checking it to the bank it's also a system that has to be used if you're going to get something like multiple cash payments either from the sales receipts or the receive payment or sales receipts and then you're going to deposit them at one lump some into the bank if that's the case you kind of have to do the full process yourself and you can't record it with the bank feeds because generally you're going to need to group them in our system in such a way that they're going to match to what is on the bank statement so if I got multiple receive payments I'm going to have to group them together using undeposited funds and then pull them together with the deposit form to show them as they will be seen on the bank statement or bank feeds in order to easily match them out the same could be said with the credit cards because the credit card company might group your deposits into multiple sales grouped together that they put into your bank account and you're going to have to be able to match that to the credit card company using possibly undeposited funds in a similar way so you're going to have to use that process okay let's let's go through the logistics here let's do this we're going to say bank feeds I'm going to use like this Skillshare one right here let's use this one and I'm going to I'm going to break this down into let's use this one I'm going to break this down into two payments imagining we've we got a sale for a thousand dollars and then a sale for $277.55 which adds up to a total deposit that we then deposit of $1,277.55 so let's go back to the homepage I'm going to imagine that this happened first in our time frame here right so first we invoiced we did work but then we're going to invoice the customer so I'm going to go let's go here and I'm going to say customer skillshare which I'm not sure if I spelled that correctly I apologize if it's misspelled whatever and then I'm going to say the date it's from 080122 and then I'm going to set up a new item called Skillshare item and I'm just a generic item I'm going to say it's a service item Skillshare is the name of it no rate because I'll just plug in the rate it's not going to be subject to tax that means sales tax I'm going to make a new account called Skillshare which again you normally wouldn't name the account for the name of the customer but that's kind of been what we've been doing what we saw with the gig work because you might do that with gig work if you were going through the invoicing process because you have the added detail of invoices with which means you can group by item then you wouldn't you wouldn't need to do it that way you might have less income accounts on the income statement but I'm trying to stay consistent with what we've done thus far our main focus was on like the gig work kind of situation so it's a it's an income account so I'm going to say save it okay boom and then that's misspelled or something whatever it's a name it's a name just add it so this is going to be $1000 so this is going to I'm going to say this is going to increase because it's an invoice a thousand dollars to accounts receivable the other side's going to go to sales but a particular account driven by the item which is the the Skillshare revenue it's also going to have a sub account ledger for the accounts receivable for the customer of Skillshare and for the sales account will also be able to break out the sales account by item and by customer meaning the item of Skillshare item and the customer of Skillshare which are the same name which okay so let's go save and new let's do it again ultra base Skillshare and this time we'll say this is let's say this happened on two just for whatever and then this is also skill Skillshare and we'll say this was another 277 which will hopefully add up to that one deposit that we saw clear and so that looks good this is going to increase accounts receivable other side going to the revenue let's save it and close it and check out what that transaction does so I go to the balance sheet and then go to the A to the R accounts receivable and we've got our Skillshare at the 1000 and the 277 double clicking there they are it's past due but as indicated by the red the big red thing and then the other side went into sales on the PL profit loss new account Skillshare there it is we can also see that on the balance sheet we can break the accounts receivable out by the sub ledger by customer reports drop down we've got the customers and receivable customer balance detail there's the Skillshare items the total now adding up in AR 1337.55 which should always tie out to the balance sheet that looks good we can also see that in the customer center customer center drop down and we see that we have the Skillshare right there there's our two invoices and we've got the transaction detail we can see the invoices this way as well all invoices versus the open invoices that looks good let's go back to the balance sheet or let's go to the income statement profit and loss notice that this one also gives us the sub ledgers since we used an an invoice so meaning I can break out those items by sales and sales by customer and change the date from 01.01.2.2 to 12.3.1.2.2 and you can see the ones that I used an invoice for will show up here so if I used invoices and sales receipts to record all of my sales then this number should tie out to what's on the profit and loss we didn't because we used because on these other ones we used the deposit so that's the pros and cons that you can also have reports drop down sales by item the things we're selling which we set up as a as a Skillshare item 01.01.2.2 and so if we had set up items using invoices and sales receipts instead of deposit forms the total of this number would also tie out to what's on the sales on the profit and loss which would lead us not to need to put like names as our account names as we might do if we're using like gig work and recording these items with deposit forms instead of invoices and sales receipts okay so then we're going to go back to the homepage the next step receive the payment receive the payment skillshare so we've got two of them I'm just going to record one at a time so I'm going to take this one first I'm going to say uh don't show me that again I'm sick of it I'm sick of it I don't want to see it again and then I'm going to deposit that one let's say this happened on the fourth on the deposit so this is a deposit form therefore it's going decrease the accounts receivable the other side's going to go into undeposited funds by default although we could put it directly into the checking account note in this case we're not going to we don't want to and it would be a problem if we did because if I deposit these two separately into the checking account then I'd have to tie them together in order to match the bank feed because the whole point is that I'm going to group these two together and imagine we put them into the bank physically as a group not one at a time and therefore they're going to show up on the bank feeds and bank statement and for the bank reconciliation as one lump sum that that's why I have to use the undeposited funds in essence in this case as a clearing account to properly group them so let's go and save it and new let's do it again skillshare for the second one ultra vase and then we'll check that one off it's going to be cash again we'll say it's going to go into undeposited funds note you have a similar issue you don't have the same issue with a check because you would expect the check to hit your account in the same amount as each payment but the credit cards you can imagine that would also have that grouping problem where you got to go in and out of undeposited funds I also kind of like going in and out of undeposited funds because I don't like to have it having the deposits of a sales of a payment form as the deposit I like to have all my deposits be deposits or transfers right and so rather than having this show up in my gl as a deposit to the checking account okay so I'm going to say let's save and close that's not a big deal though but so save and close it so now I've got these two items here so now I can group them together but before we do I'm going to close that out close this out let's see what happened on the financials if I may we're going to say now the AR has decreased so the AR is going down you've got it going in you've got it going out and then we can also see that on the the unearned revenue the I'm sorry the undeposited funds there's the undeposited funds has gone up now so we've got to deposit those into the checking account that's the next step if I go into the customer center then we can see here in a skillshare that we've got these payment forms the invoices have now then paid off if I look at this side of the transactions invoices that are all invoices are here the open invoices we only have that one left okay so then we're going to go to the homepage and I'm going to deposit both of them at one time imagining that I took those two items and deposited them into the bank as one lump sum and therefore they're not going to show up on the bank statement as one thousand and two seventy seven fifty five but rather as one thousand two seventy seven fifty five that's how I want them to show up on my side as well so I can easily match up to the bank statements using either the bank feeds or bank reconciliation and or bank reconciliation so I'm going to say okay there it is this is a deposit form we're doing a full service bookkeeping system recording our side of the books here and then matching it to what the bank will do so this will increase the checking account the other side is going to decrease undeposited funds let's save it let's close it let's go to the balance sheet and double check it double clicking to double check we've got the deposit on this one that's the one boom okay closing that out and then undeposited funds is gone because it's zero so if I want to see that zero so I can zoom on it and drill down I got to go into the advanced stuff which isn't really advanced it's not don't let that scare you we're going to say okay active cells so now I've got the zero so I can double click on it and I can see it going in and out of undeposited funds which is what the use of a of a clearing fund is then we can say well how do the bank feeds fit in well they're just going to match out over here I'm just going to match it out I'm going to say this is kind of part of my reconciliation it's not going to record anything new but what's it going to do if it's not recording anything new how come that's not it's just going to match it out it's just going to match it out here I think it did it automatically so it actually found it it put it into the recognized area so see how it says confirm here so it's saying hey I found a match for it so and that will often be the case if you go all the way through to the deposit notice it was more difficult the system didn't find the match when I entered just an invoice in the sales receipt because but but if I have the actual deposit I think QuickBooks has a little bit more information they can say okay there's the deposit the dollar amounts the same it also has the date and possibly it can help out with the with the name here although I'm not sure QuickBooks can can use the name to really figure that out but in any case note that it's tempting to enter this into the system if I if I see the details no that looks good so we can then confirm it if I hit the drop down and say match so now it matched it out so now I've entered it into the system now if it didn't find it I can say match this way and then I would go to the match area and find the match all right so what's that going to do it's not going to do anything new if I go into the balance sheet and I go into my checking account the deposit form was already there but now it's been it's been matched out and confirmed on the on the checking account side on the business transaction or the bank feeds and the reason I'm kind of hesitating here is because I thought it would give a little lightning bolt so I'm hoping I didn't ignore it I would think it would give me a little lightning bolt but uh that should help me out with the bank reconciliation so when I go into the bank reconciliation it'll help me to tie everything out and we'll talk more possibly about the bank reconciliation process in uh future presentations so where we stand at this point in time if I go to the reports drop down and accounting and taxes trial balance and go from 010122 to 123122 and then customize it fonts and numbers and just bring that up to 14 or let's go to 16 just remember this is a nice tool that you can be using and it probably would be making some of these transactions a little bit easier as we enter invoices and so on that have to do with both the balance sheet and the income statement because it allows us to check the balance the sheet and income statement in one report