 QuickBooks Online 2022, income from bank feeds and income categories. Get ready because it's go time with QuickBooks Online 2022. Here we are in our bank feed practice file we set up with our 30-day free trial holding down control scrolling up a bit to get to the 125% currently in the home page otherwise knowing as they get things done page in the business view as compared to the accounting view to change to the accounting view as something you can do by going to the cog up top switch to the accounting view down below we will be toggling back and forth between the two views either here or by jumping to the sample company file currently and the accounting view going back to our bank feed practice file opening up a few tabs to put reports in by right-clicking on the tab up top and duplicating it back to the tab to the left right clicking again and duplicating again back to the tab to the left one more time right-clicking again and duplicating again as that is thinking let's see where the reports are located over here on the accounting view which is on the left-hand side under reports back on over to the business view in the second tab the reports are located in the business overview and then in reports closing up the hamburger up top we're going to be opening up one of the faves that being the balance sheet the big balance sheet report there it is range change up top from 0101 212 1231 21 and run going to the tab to the right and we're going to go back into the business overview again into the reports closing the hamburger and going down to the profit and loss the other major financial statement report otherwise known as the income statement range change 0101 212 we're going to say this is 1231 21 and run and then we'll go tab to the right one more time we're going to go to the to the business overview and then the reports closing up the hamburger this time typing in for the trustee trial balance the underappreciated but well well deserved credit worthy report which I would recommend using 0101 21 to 1231 21 and run basically balance sheet on top of the income statement without the subtotals we're going to go to the balance sheet back to the balance sheet we're thinking about items that are going to be increases now when we think about our bank feeds let's first open up the bank feeds let's go to the tab to the left and go to the bank feeds which under the business view is going to be on the bookkeeping side of things on the left-hand side and then transactions up top and then into the banking however we're most likely going to be adding some transactions as we go or accounts as we go which I don't like the way the business view personally does that at this point in time so I'm going to switch it now to the accounting view so we can see where the bank feeds are located in the accounting view and more easily add accounts which I would recommend at this point in time unless QuickBooks changes its business view format so we're going to switch it on over to the accounting view so that we can see where the bank feeds are located which is under banking now and then the banking up top tab closing up the hamburger this is the information we pulled over from our financial institution currently in what I call bank feed limbo it's been pulled over but doesn't have the information to be included yet in the final product that being the balance sheet the income statement otherwise no one is the financial statements so now we want to go into the deposit side of things so if I look at the balance sheet then we've got increases to the checking accounts so as we add these we're going to have some increases which will be good considering we have a negative balance here and we want to assign them then to go into the tab to the right the income accounts so typically we're going to be working on a type of scenario and that where the bank feeds are going to be as easy as possible so if I jump back on over to our flow chart then we're in the customer area we're thinking about how can we record our revenue in as easy a way as possible not only be on attack spaces but being dependent on the bank feeds which will be dependent on what type of industry we are in one of the easiest industries to be able to do that would be if you're getting paid from platforms such as like YouTube adsense other kind of teaching platforms and whatnot and so now we're gonna we're gonna use that method and then we'll talk about deviations from that method to more of a full-service cash basis system and then to an accrual type system possibly adding inventory at future presentations as well so right now we're gonna be basically on a cash basis system so we're not going to be using the sales receipt or the invoice to record the sales but recording them with the deposit form as the deposit clears the bank with the bank feeds which is not the design of QuickBooks but does work and is easier it does create our financial statements but we lose some of the detail including being able to sort our revenue as easily by customer and sort it by item inventory or service items which are typically done with sub ledgers so if I go back on over here then I'm gonna add some accounts as we go into these accounts now notice the general rule is that we you don't want too many accounts on the income side of things you want broad account categories and then to support those categories with sub ledgers breaking out by customer breaking out by item whether that be inventory or service items that you're selling however if you are just dependent on the deposits those sub reports aren't gonna be as useful so you might be more likely to add some more income accounts possibly by the platform so you might call it like YouTube income or AdSense income or you know Amazon income or book rental income or something like that more so than you otherwise would in other types of industries where you would typically want to be not putting things in place by the actual customer that you're getting the money from because you can get that on the sub report okay let's go back to the bank feeds we're gonna add some more these categories as we go so I'm sorting this time by the amount up top so that we can see then the inflows I'm focused in on the inflows which is gonna hopefully be revenue I'm gonna start with Amazon because Amazon is a good example of having one customer that might be giving us income for multiple different things and you can see the same kind of issue that might be taking place in different types of industries as well depending on the things that you are selling the things that you are doing in order to generate revenue and you could have a similar kind of scenario on the expense side of things meaning you might have one vendor that you purchase multiple different things for so you can have a similar kind of situation that would be well how do I want to allocate these to the account and how can I make that as automatic and automated as possible with the use of the bank feeds so for example Amazon you might have something like affiliate marketing type of income or something like that you might sell things on Amazon you might have royalties that you're getting on Amazon for books that are being sold so you could and you might have different locations that you have that you're selling on Amazon you might have Amazon Prime type of presentation stuff that could be on Amazon and you might want to distinguish then those different things into different line items on the your income statement into different accounts you can't do that by distinguishing the different items that you're selling because you don't have you're not using a create sales receipt or an invoice that's one way you can deal with that problem you could actually go in and make basically a sales receipt and match this up to the sales receipt the sales receipt allowing you then to enter the detail of the item that you're selling but that's an added step in the process so if you wanted to use the bank feed to use the deposit to put directly into the system you could then say okay is there any difference in the memo that I'm getting in terms of these different items that I can use to set up a rule that would distinguish these different types of things even though they're coming from the same customer and so that's the kind of thing we can look at you also might say even though they're both coming from Amazon maybe I'm going to make a vendor that's going to be separate maybe I make this one Amazon dot co which is distinguishable from Amazon dot com dot California for example so even though they're the same vendor in actuality they're both the company of Amazon in this case I might actually make a different vendor as a way to distinguish all the items that are coming from that you know for that particular reason if I'm using the bank fees to give us a little bit more detail so I'm gonna create the Amazon dot co here as a customer and we're gonna say save now clearly Amazon is kind of like a platform but they're basically our customer in this instance and then we're gonna say the income account instead of having to go into the generic service income I'm gonna make another income category account let's add a category and I'm gonna imagine this is like from Amazon Prime type of income so I'm gonna say it's video content or something like that that they're paying me for so I'm gonna hit the drop down and I'm gonna say that this is gonna be some kind of income account and then I'll just say other income the second category is not too important so other primary income and then I'm gonna call this just video content income which is kind of generic so I'm trying to make it generic I could make it less generic can call it Amazon Prime income I'm as on Prime video content income I might want to do that in this case to give me that detail on the income statement given the fact that I don't have that added detail from the items on the sub ledgers so I'm gonna go ahead and save that I'm gonna talk more about the rules later so I'm not gonna set up the rules for this one at this point in time we'll get back into this later and jump into those rules and think about okay how can I distinguish Amazon income here versus Amazon income from affiliate marking possibly or Amazon income from other items and automate that just coming in from the bank feeds we'll talk about that more when we get to the rules area for now let's just add this one and what that's going to do then is if I go to the balance sheet hold control down and scroll up and I run this report again I can go into my checking account go into that checking account and that big four dollars or whatever it was should be in here somewhere where's that four dollars that I got where's the four dollars there it is so there's the 450 it's a deposit form if I go into that one we'll see that it doesn't go back to the bank feeds it goes back to a deposit form because that's the form used for an increase to the checking to the checking account so I'm gonna close this back out I'm gonna scroll back up top go back then to our report go to the tab to the right to the income statement or profit and loss run it again and so now we've got this other category called video content income that we put here we also have the customer that's going to be set up in the customer detail to see that I'm going to add another tab I'm going to go to the first tab right click on it and duplicate that tab so that we have another tab we can be navigating around before our reports tab now we're in you'll note the accounting view as opposed to the business view and I want to go into the sales area on the left-hand side which is right there sales area and then we're gonna go into the customers section so in the customer section closing this out and we can now have amazon.com as the customer if I go into it you'll note I don't have the normal transactions I would have because it wasn't a sales receipt it wasn't an invoice and it wasn't a a sales payment receipt but I still want to add the customer in that way because it helped me set up my rules and it also will help me if I want to make a detailed report and and basically filter it by customer so if I went into the cash detail here for example and I wanted to filter it by deposits and by customer then that added customer field becomes useful so we're losing a little bit of information by not having the sales receipt or invoice but we're gaining in terms of ease or quickness of data input okay let's try another one let's go back to the tab to the left I'm going to look for another one here so I'm going to try this one which is a Google one so this is Google AdSense so so now I'm gonna say let's add that one and let's pretend that this one is for like YouTube revenue YouTube revenue that we're going to have so I might I want I want to add it to the to the vendor again you could have multiple different areas that you might get paid by Google for different things in which case again you might want to change like I might call it instead of just Google Google AdSense and maybe I get paid by Google for something else and I can change I can have different vendors which might help me to sort it I'm gonna basically add that I'm gonna say this is gonna be saved for that customer the category I'm gonna put back into my generic category that I put up top which was the video content the video video content income account so I'm so I'm gonna put it in that generic category and I'm combining the different areas Amazon Prime and the I'm assuming YouTube revenue into this video content income account you might want to break them out again you might want to do what I said generally you wouldn't do if you had a full service accounting which would be to actually list the customer who paid you right which would be the platforms in this case at you know Google AdSense and and then the other customer that I just did Amazon that paid you but I'm gonna put it into the generic category here again we could set a rule for this to make it more automated in the future but I'll get into rules a little bit more in the future with regards to these items so I'm gonna go ahead and add that and if we see what happens if I go to the balance sheet hold down control scroll up a bit we're gonna refresh this report and if I go into the checking account hold control scroll back down and I'm gonna look for a Google now notice again I can sort in here if I have the detail in Google so I might say I might filter something like this by customizing the report and I might say I want to filter possibly by the name of Google and that's and that gives you some more detail even though you don't have as much detail in in in the sub reports breaking this information out your sales out by by customer going back on over the other side is gonna be in the income statement if I run that report in the income statement now in this website or video content income we should have the two items that are now included in there from the two different basically customers that are going into that area for similar kind of things for video content we're imagining let's do another one I'm gonna go back to the first tab again and let's try one that's slightly different for Amazon here so this is a different Amazon account which I might want to say okay this is coming from something that's gonna be a little bit different so I'm actually gonna make another vendor I could keep the same vendor and have them go into two separate accounts and then basically use my rules to determine something in the memo to identify that these are these are going to two different accounts although the same vendor or you might want to adjust the vendor and say I'm gonna make this a different vendor by calling it amazon.com possibly CA on the end here so I have a different vendor even though they're both Amazon here but that'll help me kind of to distinguish and sort my data possibly as I sort it so I'm gonna go ahead and save that as another customer not vendor customer here so I'm gonna imagine this is from like book royalty revenues I'm just making this up but let's imagine this is coming in from the book royalties so we wrote a book and they're giving us royalties so I'm just gonna call it book revenue or book royalty revenue so that means that this account that it's gonna go be going to I'm gonna make a new account and say this isn't for my primary this isn't for their their video streaming thing Amazon does everything apparently this is gonna be for book revenues so I'm gonna say book revenue which you might more properly call royalty revenue or something like that but I'll just call it book revenue and I'm gonna go ahead and save it so we're gonna save that and then say let's go ahead and add that one so let's add it and then if I go back on over I'm gonna say okay what happened to the checking account now we're gonna refresh run it again and then go into the checking account we should have an increase this time to the checking I'm gonna once again sort by it I'm gonna go to the customers up top and I'm gonna filter and you could filter by deposits but I don't even need to I can just go to the name here and I'm gonna say this is going to be Amazon this one which will give me just that information even though I have multiple sources from Amazon and there there is our book revenue item I'm gonna go back up top and then go on over to our income statement and on the income statement I'm gonna run it hold down control and now I've got another income account up top which is going to be the book revenue with a whopping 735 in it it's not at the best seller yet but it's it's gonna get there any case let's go back to the first tab and do another one so for this one I'm gonna look at an audible kind of one so this one is is basically Amazon again but now they have another name for it so it's gonna be audible this would be like revenue if you've got it if you've got like an audible book that is through basically audible which is I think Amazon so now I can change the name on it again so it's audible so I'm gonna say that's gonna be my customer so let's put that in as the customer adding it and say that's the that's the customer and then on this one I won't put into video editing you might be tempted and it might be fine to just put it into audible income because the only place that you have your audio audible books might be audible but there might be other places that you might put your audible book in the future or something like that so it might be better to have a more generic category of basically you know audio book revenue or something like that so you can choose either one that you would that you would like I'm gonna add the category and I'm gonna say that it's gonna be an income account and let's say that this is gonna be other primary income and I'm gonna call it audio book audio book revenue like so and so I'll save it there save it there and then we could make a rule based on that we'll talk more about rules later so let's go ahead and add that and then if I go back on to my to my balance sheet and run it again and drill down on to my checking account checking account and then I can sort this kind of data by the by the customer which is useful so I can go up top and say let's customize this one and filter it and look for then the name of audible audible checking that out and so here's the detail for audible that I can I can kind of run a report still and see that information even though I'm not using invoices sales receipts products or service items for it I'm gonna go back then to my report let's go to the tab to the right and look at the P&L customizing it hold on not customizing it I just want to run it again so it's fresh I want to work with fresh report so there's the audio book revenue up top on that one adding another income account again if you called it audible then that would be fine in theory there but because we don't have the sub ledgers but in general you kind of want the generic item and then if I had other audio book places then possibly I can put that into the same area here and still get the added detail by sorting reports by by the customer okay let's try another one let's go back to the first tab again and let's try an interest so we got interest basically from the bank so they gave us a little bit of interest here which is good considering inflation seems like it's rearing its ugly head at this point in time so we could use a little bit of interest but the good 21 cents right there so we're gonna then say this is coming from the bank so we could put this in here and put whatever your financial institution is I'll just call it bank and I'm gonna add that now the bank isn't really a customer or a a vendor but those are our two options and I'd like to add something so I can sort by that item so I'm gonna add it as a customer and then I'm gonna say that we want another income account so let's make an income account for the interest income and we'll hit the drop down now this one you could put into the to the normal income account here which will put it up top but you might say hey interest isn't part of my normal operations so maybe I want it on the bottom because it's not really part of like what I do it's just happens to be a little bit of income I get on top so I'm gonna say let's put that on the bottom in other income and I'm gonna call it interest income interest income with my wise investing from my wise investing so I'm gonna go ahead and save it and close it and so there we have that we could make a rule on it but I'm not going to at this point we'll talk more about rules later let's save it and then I'm gonna go back to the tab to the right on the balance sheet run it and then I could go into my checking account going into the checking account again drilling back on down towards the source stuff and let's go ahead and and do a customization here and filter this by the bank so I'm gonna say let's filter it by the name which is just the bank name and run it and that's an easy way that we can basically use that use the the customer information to sort this data and get a little bit more information I'm gonna go back on over let's go to the tab to the right this is gonna be the income statement running it again and we have the income but it's not up top basically we've got the income minus the expenses will give us then then the net income on a a book basis and then we've got the other income down here including that unrealized income that we talked about before from our stocks and bonds were imagining and the interest income which is really investment income not really part of our what we do in general so that's why we might put it on the bottom as other income so that we can get that subtotal of what we actually do as the as the income line item here okay so that's the general idea of it in future presentations we'll get into a bit more detail on the rules related to those items and add some more of those those other items possibly with those rules