 QuickBooks Online 2023. Bank feeds matching deposit form to bank feeds deposit. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our bank feed practice file. We started up in a prior presentation using the 30 day free trial. We also have opened the free QuickBooks Online sample company. If you want the two open at the same time we suggest using incognito. 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 or another browser to open the sample company. If you want to use incognito and you're using Google Chrome you can select the three dots in the browser incognito window type into the search engine QuickBooks Online Test Drive. We're using the sample company to compare the accounting view the one the bank feeds practice file is in and the business view the one the sample company is in. If you want to toggle between the two go to the cog up top switch the view down below. We're going to be duplicating tabs like we do every time to put reports in right click on the tab to duplicate and then we'll do that again. You might say that we're duplicating the process of duplication then we're going to go to the middle one we're going to go to the reports on the left we're going to then go to the balance sheet one of the standards by the way if you're in the business view the reports they're in the business overview they're in the reports on the left hand side that's where they are that's where they are back to the tab to the right reports on the left this time the profit and loss the big P to the L otherwise known as the income statement let's change that range up top if I may 010122-123122 run it to refresh it back to the middle tab closing the bugger changing the range 010122 tab 123122 tab and run that to refresh it back to the first tab let's open the bank feeds because that's where our focus is that's on the banking easily done banking tab if you're in the business view by the way the bank feeds are in the bookkeeping and then transactions up top and then the banking transactions that's where you gotta go if you're in the other view the business view that is okay we've been looking on the sales side of stuff let's go into our flu chart to see our scenario so remember at the end of the flow of the revenue cycle we expect deposits in the checking account in some way shape or form but the way that flow will happen will be dependent upon what type of industry we're in if we just have gig work we saw that we could just make a deposit record income as it clears the bank that would be nice and easy but we might be in a situation where we have a cash register we have to deal with that we'll deal with that in a future presentation now we're thinking about a scenario where we're getting paid for work that we did in the past and therefore have to invoice clients track the accounts receivable and then get payments in the future that means that the invoice increases accounts receivable the other side goes to revenue then we receive the payment which can do one of two things it could they always decrease accounts receivable and then the other side could either go directly into the checking account for the payment that we received or it can go into a clearing account which used to be called undeposited funds they now call payments to deposit but the point is it's not yet in the checking account you put it in the clearing account for a couple different reasons one being that if you get multiple payments from cash or a credit card that are going to be deposited into the checking account physically into the checking account in a grouping of multiple received payments or sales receipts then you need the clearing account so that we can put it in our system in the cash account in the same grouping that will match what's on the bank's side helping us with the bank reconciliation process which could be aided with the use of the bank feeds and that's kind of what we're going to focus in on here so last time we talked about connecting the bank feeds to an invoice which you could only really do if you made the invoice and you expect the payment to come through in the same dollar amount for an individual sale by individual sale same thing is so if you're getting an electronic payment from the customer or if you're getting a check from the customer then you might be able to do that we then talked about the receive payment and connecting a bank feed to the receive payment in both methods either if you deposit directly into the checking account with the receive payment or go to the clearing account but again to connect the bank feed waiting till something clears the bank in order to connect it to the receive payment you could only do that if you're getting the deposit in your bank account matches each individual sale so that you can connect it out if that's not the case say you have cash sales for example and then you're going to take multiple cash sales that you have received money on now and deposit them into the bank in a lump sum then you're going to have to take that final step of putting it into the clearing account of amounts to be deposited undeposited funds and then enter it into the bank in the same grouping that is going to be seen on the bank statement and that way then the bank feeds are just going to match out to what we have on on our side helping us to reconcile and notice we'll have a similar issue with the sales receipts so if you had a cash register situation you're going to have a similar issue if you're getting cash sales or credit card sales you probably can't just wait till something clears the bank and match it to the to the create sales receipts you're going to have to take it and you're more likely to have to take it in and out of this this clearing account because you're going to have this reconciling issue of grouping multiple sales together when you make the deposit into the checking account all right so let's get into it we're going to we're going to go over here i'll see if i can explain that a little bit better as we do our example problem i'm going to right click on the tab up top make one more uh tab i'm going to i'm going to try to tie this into this deposit over here so this is the deposit that's going to clear this 150 so so i'm going to try to make two invoices now to show this issue of having multiple invoices that are going to kind of group together to make up this one deposit that hit the checking account of 150 to show you that that kind of issue all right let's go to the first tab let's make the first one let's just make a new invoice and let's say this was i don't know what customer i'm i'm thinking about customer six customer number six can't you just make up a name cuss cuss i can't even spell customer okay i can't even do that she's giving me a break can't you just make it's so generic man it's so generic all right whatever whatever just deal with it this is going to be on 10 10 let's say 10 10 22 and then we're going to say down here this is going to be a service let's say hours and let's say this one was 50 and the other one will be 100 making the 150 right so this is going to what it's going to do it's going to increase the accounts receivable because it's an invoice the other side's going to go to revenue for the $50 and then the sub ledger of the customer will be tracked for customer number six before we check it out on the financials let's do another one to to get to that 150 so i'll make another one so instead of saying save and close i'm going to say save and new save and new let's do customer let me guess customer number seven yes customer number seven customer number seven oh my goodness gracious it's just ridiculous my fingers aren't working because people are taunting me with my uncreativeness i'm going to let's say this happened on 10 10 2 all right and then this is going to be hours let's make this 100 so the adding up of those two will then add up to that 150 so let's save it and check out this is going to be saving close this time what happens to our financials if i go to my financial my balance sheet and run it accounts receivable is going to go up by those two invoices there's six and seven the 100 the 150 and then if i go back on over and i look at my profit and loss and refresh it it refresh it then we're going to go in here and it has two going up by the 100 and the 50 and the sub ledger is going to go up and let's just check that internally going to the tab to the left sales on the left hand side and then i've got i feel like i've got a really itchy nose here right now it's annoying i'm going to sneeze i'm going to anyways this is going to be down in six and seven uh so here's the 100 and the 150 so the next thing we're going to do of course is the received payment on them in the sub ledger that would be the next step that we would expect to be happened you can also be tracking these by going to the uh hand buggy and then sales and uh all sales and so you can check these out by the open invoices and so now you've got your open invoices here as well now if you're in the business view by the way the customers are located in the get paid and pay area and then customers and that other sales tracking item is in bookkeeping and then transactions and then the all sales so you can track it that way if you're using that method okay so then let's go with the received payment so once again now i have this step done the next thing is to receive the payment i could in the prior presentation i matched one time a uh a deposit to the invoice i can't do that this time because the deposit is going to be for 150 dollars and neither one of these invoices are for 150 dollars because they got grouped together because they were either cash sales or credit card sales let's say when they actually hit our checking account so that's the issue i can't so now i can't tie out my my deposit wait till it clears the bank and then tie it out to the invoice so i have to make the sales receipt in this system i'd have to say okay i got to do a sales receipt and then i'm going to say okay this happened let's say on 10 11 just to switch things up let's pretend it was a cash that we received now i can't put it directly into the checking account i could but if i did then i'm going to end up with two items on the checking account for one for 100 one for 150 that i need to match to what's on the bank which is reflected through the bank feed of 150 you see and that's going to be a matching problem it's not going to match out properly so to match it out properly that's why we have this payment to deposit which is like the undeposited funds that you might be used to which it used to be called so this is going to decrease accounts receivable decrease the sub ledger for customer seven and record it not into the checking account but rather in the clearing account payment to deposit so that we can then do the added step of taking it out of there and putting it into the checking account as 150 instead of 150 so we can then tie it out to the bank feeds helping us out with the reconciliation all right let's save it and close it and then let's do the other one this 50 i'm going to receive the payment on it as well and so i'm going to say boom boom boom it's going into payments to deposit this is going to reduce accounts receivable the other side's going to go into the clearing account and it's going to reduce the sub ledger for customer six let's save and close that so now over here if i look at my customers then if i go into my customers area and check them out customer seven for example we have now created an invoice the invoice has been paid it's now closed and it's connected to this payment so it looks looks beautiful internally if i go to my financials the balance sheet running it now i've got not a checking account yet accounts receivable went down so now i've got the increases and decreases just like we would expect to happen invoice increase payment decrease and then the other side is going to go to the clearing account which is like undeposited fund which has that 150 but that 150 it's comprised of these two items for the one for the 50 and the 100 if these two items went directly to the checking account again they would be in there as two separate items which would not be reflecting what's going to clear the bank account of 150 making it difficult for us to match out and so that's why we need to then use this clearing account and then the next step would be that we'll have to do on our side is we're imagining we physically go to the bank and we deposit the money that we got 150 dollars into the bank if i go to the first tab hit the plus button we can do the deposit form internally now and we're going to say quickbooks gives us nice little thing here which gives us the payments anything that's in the payments area as well as the cash receipts which is the points of sale transactions that we'll take a look at later so i can group them together and if these were both cash sales that happened or i received them on the same day right then i can i would deposit them together into the checking account as 150 which is what will be reflected on the bank statement so i'm going to check those two off this is going to increase the checking account but by 150 but not by two separate transactions by one transaction and decrease undeposited funds giving us the detail so we can see those two transactions in undeposited funds the clearing account so we can take and tie them off let's do it save it and close it i'll show you what i'm talking about what are you babbling about i'm telling you just let's just let me show you let me show you it makes perfect sense so this is going to be the 150 that's going to go in here somewhere it was like in the tens there it is 150 so there's the 150 recorded as a deposit so if i go into that it takes us back to the deposit form notice it's in here not as two amounts but one amount that's the point that helps us to reconcile that helps us to match to the bank feed the other side decreased the clearing account of doneday estah there it is so then we're going to say this is going to be notice it put it in here not as 150 but broke the two out so we can take and tie so it's kind of a neat quickbooks does a good job of that the way they group them in the ledgers so they help us to maximize our ability to kind of take and tie there whereas on the bank side of things it should match the bank feed now if i go to my bank feed transactions and i wait till it clears the bank if i refresh it it'll probably be able to match it up so i'm going to refresh the screen with a little refreshy circle you know the circle refresh button and then it'll probably pick that up it's probably smart enough to do that smarter than smarter than i am i know that dang robots think they're so smart i'm gonna say this is gonna so they matched it up here based on basically the date and just a dollar amount we couldn't match it up notice it wouldn't be able to match up very cleanly if we had those two amounts that we're trying to tie out to to to it so that's why we have to use that that undeposited funds to help us with that transaction typically okay so it finds it what's this gonna do when i record it nothing it's not gonna do anything new because now we're doing a full service accounting system we've recorded everything on our end and we're just double checking it to the bank which is still required still necessary and still helpful to have the bank feed to help us do but it's basically just helping us to do the bank reconciliation that we would want to do anyways instead of us constructing our books from the bank feed so a lot of small businesses might have this kind of setup meaning they might be doing their their payment side of things on a basis where they're reliant on the bank feeds because they're paying all of their outflows like telephone utility and supplies with the with the bank transactions so they can record those with bank feeds and memorize them automate them but if you're in an industry where you have to collect or bill have an invoice situation for work that was done in the past they're likely to be on a full service system there meaning they're going to record the full thing and enter the deposit on their end and then simply reconcile match to what's on the bank feeds which helps with the bank reconciliation process and we'll talk more about bank reconciliation later so that that is that one so next time maybe we'll spend a little bit of time on the the sales receipt which would be what would happen if you're at like a cash register type of situation you have a similar issue that we saw with the received payments in terms of being able to match out the bank feeds to the sales receipt but most likely you'll have that problem of having multiple sales that are going into the checking account so you can have to use that clearing account again and use the bank feeds to just kind of match out so we'll talk about that later