 QuickBooks Online 2023 income from bank feeds and income categories get ready to start moving on up with QuickBooks Online 2023. Here we are in our bank feeds practice file we started up in a prior presentation using the 30-day free trial we also have open the free QuickBooks Online sample company if you want the to open at the same time we suggest using the incognito window or another browser you can open incognito if using Google Chrome 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 by selecting three dots in the browser new incognito window typing into the search engine QuickBooks Online test drive we're using the sample company to compare the accounting view the one that 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 views go to the cog up top and switch the view on down below we're not going to be duplicating some tabs to put reports in like we do every time right click on the tab up top to do so to duplicate it right clicking on the duplicate to tab to once again duplicate it back to the tab in the middle we're going to go to the reports on the left-hand side open up the balance sheet report one of the favorites if you're in the other view by the way where are the reports located they're in the business overview and then the reports on the left-hand side back on over to our practice file here tab into the right to open up the other major financial statement report in the reports on the left that's the profit and loss as we know by this time closing the hamburger changing that range I'm going from 010122 to 123122 I'm going to run it to refresh it and then tab to the middle same thing the boogie needs to close and in that range that needs to change from 010122 to 123122 run it to refresh it and then I'm also going to open up the bank feeds as part of the normal practice problem setup since we're focused in on them at this time let's go to the first tab to do that and the bank feeds are located down here in the banking area on the left not really down here it's on the left but if you're on the business view by the way the bank feeds are located in the bookkeeping area slightly different transactions up top and then the bank feeds so that's the setup process that we basically do every time we're going through the bank feeds to add the deposits now so we've looked at some of the expense side of things now we're focusing in on the deposit side of things quick recap on the deposits if we look at our our flow on the revenue cycle then at the end of the day we expect cash to be going up but we might have to collect that or have different cycles depending on the industry we're in the easiest industry and the one we're going to focus on this time is being able to construct our financial statements directly from the deposits that would be something like gig work you get paid from YouTube you get paid from Amazon some platform comes in you record the deposit with a deposit form using the bank feeds instead of using the create sales receive which is the cash based income form designed to be used in QuickBooks or an invoice which is the accrual based form designed to be used in QuickBooks to record income so by using a deposit form we're losing a little bit of the detail we would otherwise get if we were properly using a sales receipt or invoice such as tracking our revenue in sub ledgers sub reports by customer or by by item things that we're selling inventory items and service items but that might be well worth doing if we are in an industry where we could do that because we can automate the process and then we'll branch out from that in future presentations to think about well what if we had a cash register situation how would we have to modify our bank feeds in a slightly more difficult situation there and then moving to an accrual standpoint and we'll analyze that situation so if I go back on over then as we construct our income statement accounts we're going to be building our income statement as we go remember the general rule is that we're going to have fewer income statement just major categories of income statement accounts because normally we would have the sub ledgers breaking out the income by customer by items that we sell if we were using the sales receipts and the invoices to record income however if you're getting paid just by YouTube or something then you might just call your income account YouTube income or something like that because you don't have those other sub ledgers and so you might just name it by the customer or the platform which is what we're going to be doing here so it's important to keep those two things kind of separate in your mind because it'll differ depending on the industry you're in alright so let's go in I'm just going to sort this by I'll sort it first by date and then I'm going to sort by the well it's sort by the detail first I'll sort by the detail and then I'm going to sort by the amount so I can get my deposits basically on top and that will categorize it so I can see the deposits on top and then I can see the groupings that are kind of like the secondary sorting in order so if I wanted to add multiple things at one time then I'm more likely to be able to do so now I'm going to go down here to the Amazon items and this is just an example we'll try to dig more into these when we get into rules a little bit later but you might get like one customer that pays you multiple different kinds of income and if that's the case then we might want to differentiate then the income accounts that they're going to be going to which can be a little bit tricky because if you only have one customer then how are you going to set up a rule to differentiate the type of income the same thing could happen on the vendor side of things on cash outflows so oftentimes if it's an electronic transfer even though like this one and this one are still from Amazon I'm not even sure what they're for here but I'm just going to make up what they're for right even though they're both from Amazon I could say well maybe I want this one to be differentiated go into another income account and so that's and so we can do that oftentimes even though it's actually the same vendor because the detail in the bank feeds will have differentiation if not in the name sometimes in the number and this kind of jargon over here you got to be careful because maybe it just it might be just a numbering thing for the number of the transaction but sometimes in this bank feed jargon there's something that you can use to differentiate that might be useful for you to categorize your items possibly to a different location for example if you're tracking by location or department or something like that if it was being mailed to a different location but it's first it was like the same kind of income or something and you want to track by location you might be able to set a rule that would distinguish it based on the on this bank feed detail that's why you want the detail rather than just the description that QuickBooks will kind of extract from it alright so let's take a look at one on 229 let's take let's just take a look at I'll use this one for an example so it's gonna be a category and then now we've got a customer now the question is if I'm gonna distinguish different Amazon items what should I be including as the customer name I might want to differentiate if I'm gonna have a different customer like this one down here or one of these up top that have a bit different of a name I might want to distinguish those by having different vendors even though they're basically coming from the same vendor because that will allow us to search at the detail this is a customer not a vendor they'll have that'll allow us to go into the customer detail possibly and sort the information by a different customer or you could just keep the same customer as just generically Amazon and still be able to distinguish the transactions based on the bank feed memo so you have a couple different options I'm gonna make like a different vendor for each one so this one I'm gonna call let's call the whole thing Amazon.com incorporated I'm gonna say that's gonna be a new customer I'm sorry if I keep saying vendor switching to the customer side because it's a deposit and I'm gonna save it and then the category I'm gonna add a new category to it as we go and it's gonna be an income type of account so I'm gonna say it's gonna be an income account and it's a standard income I'm just gonna call it other primary income and I'm just gonna call it Amazon let's say this came from Amazon Prime like they're giving us money from for videos or something that we uploaded to Amazon movies we uploaded or something so I'm just making that up so we're gonna say there it is and let's save it and then we could of course make a rule based on that trying to distinguish the Amazon.com from the other Amazon type of things in the rule if that's the way we want to do it or we can make it more of a general rule if we wanted it to include all the other Amazon items so if I want to make it generic to include everything I can I can do that by just calling it Amazon or I can use to one of these distinguishing factors to make a more specific rule so I can differentiate between them so let's make the rule down below just like we did before and I'm gonna try to distinguish the rule by saying that I want to go to the memo possibly and pick up part of the item that's gonna be differentiating it so I'm gonna name the rule that and then I'm gonna say it's a money in rule of course and I can say all or any transaction I like go into the bank text which might be necessary if we need to pull in some of that that added detail like in the memo area instead of just like the description where YouTube where I make where the QuickBooks might truncate it and then I'm gonna say contains and then this is where I can make it more general or more broad so I want to make sure to add the dot-com in it because that dot-com is gonna be a distinguishing factor from some of the other Amazon items so I'm just gonna say okay it's gonna include the Amazon.com or maybe I should go down to the I'm gonna add this whole thing in the bank memo this whole thing right there and and so now so now that happened to be in the text to have a distinguishing factor but if there was a distinguishing factor in the number then of course I can go on to the number to try to distinguish it from other items from the same customer or if I was dealing with a vendor same kind of items then of course I can add another rule if I wanted to apply another rule to it we can test the rule here and it says that five are currently are are in are in there so this rule will apply to five of the items that's good so deposit that looks good but looks good I'm not gonna apply it automatically so I'm gonna save it and then something's not quite right so I'm gonna get rid of a comma in the rule name and that should do it alright so then I can scroll up and I can sort now by the ones that are recognized so I can recognize 11 of them and the Amazon items have been picked up so here we have them now notice it just picked up the ones with Amazon.com we had some other Amazon ones I'm just gonna try to add all of them so I'm gonna put my cursor in this first one I'm holding down control and I'm gonna go down to this one and then let's accept all of those pulling those over into our financial so I'm gonna accept those go to my balance sheet see what happened to it I'm gonna run it and then if I go into my checking account now I should have more deposits so it might be useful to me to go up top and customize this possibly filtering now by transaction type which is quite common I'm gonna filter by the deposits if I can find them don't day a star running it okay so there we have our deposits there's our Amazon deposits that have been made there so that looks good if I go into it it takes us into of course a deposit type of form that looks good and so I'm gonna close this back out and scroll on back up so it doesn't take us to the bank fees it takes us to the deposit form to the income statement and and now if I refresh it running it to refresh it then now we have this Amazon Prime we named it by the customer because I don't have the luxury of the sub ledger to break out the customer because I've entered these as revenue with a deposit form instead of a sales receipt or other a sales receipt or invoice form so there it is there's the deposit form the income statement is being created now we've added the income line or customer so I can go back over here and right-click and duplicate this tab I'm gonna pull it to the right and then I could go down and find my customers which are in the sales area in the sales tab on the left and there's my customer information so we've got the customer in place but there's not going to be a lot of detail in it because we're not using the normal forms used which would usually be an invoice sales receipt and receive payment type of form but at least we've got a little bit more information that we're listing the customer in the transactions which we can see when we see the transactions you know go into the actual transactions and the detail of those transactions in here in the name and that could give us a little bit more sort in detail to sort our data so it's not we lose a little bit of the data by not using the full service accounting system with those sub reports but again it's probably worth our time to do so because it's faster it's way faster to do it this way of course so now I'm gonna close out the filter let's do another one let's do like a youtube one so I think it was let's do like amas google google uh youtube so let's say that youtube pays us and I'm just gonna say okay youtube and then I'm gonna call it a vendor so I'm gonna just copy the the thing down here so you might get paid again multiple ways from google you might get google payments from different things so so you might have a differentiation of not the vendor the customer these are these are deposits that you can get from the memo or you might just have one customer you just call generically google that could account for multiple different receipts that you might still assign to different accounts by using rules and the information in the memo this is what great about having that memo line on the electronic transfers it gives you this tracking information so I'm gonna go put this in here as google it's gonna be a customer boom it's not going to cost a good soul that is silly going up top and adding a new one and then I'm gonna make it an income type of account and this is gonna be other income other primary and I'm just gonna call it youtube youtube income or you can call it google income or whatever you want i'm basically naming the vendor which is or the customer which isn't normally what you what you do in a full service accounting system but works quite well when you have this like platform situation recording income with deposits so i'm gonna say let's save it and then let's make a rule for it creating a rule there are rules here so i'm just gonna call it google youtube rule money in i'm gonna make it out of the bank text and then i like taking it from here so i could say if i get multiple incomes from google then i might want to make sure that i add google youtube right here and notice i tried to truncate it because it's taking it kind of from the memo what quickbooks is extracting from the bank text but this is going to be more specific because this is actually the information from the bank even though it's got all that other junk in it so i'll use that it's probably safer to use that okay so then that's good so everything else looks good i think i'm gonna save it and then i'm gonna scroll up top and sort this thing by what's been recognized you better recognize so now we've got these two that are recognized so i'm gonna select those two not that one that's not one of them i'm gonna select those two and then let's accept them they have been accepted into the fraternity of of the balance sheet and income statement so if i go into the checking account then i can sort now now it's getting a lot of detail so i'm gonna customize it up top filter it and i'm gonna look at it by deposit so let's just see those increases those deposits and then i might further sort it by customer so you might say that i'm looking for the google customer right if i have a whole lot of detail in here and then you can sort it out so those sorting fields quite nice if i go into this item then we get back to our deposit form not the bank feed itself and the deposits being used to deposit directly into the income account being the other side closing this back out back to the balance sheet let's go to the income statement to see it running it so now we've got our youtube income boom if i go into the youtube income we've got our our deposit once again this not being the natural form that's used to record income but works quite well if you're in in a situation where you could do this where you have like a gig work situation all right let's do another one if i go back on over and say i'm going to do another amazon one so i'm going to get rid of the rule here we'll go back down to amazon so this one let's say we've got the amazon let's do this one amazon services so let's say i'm trying to distinguish this income from the other income from amazon now i could distinguish a different customer or i can keep the same customer and still distinguish a different income account by using the memo so it depends on what you want to do i'm going to create a different customer for it actually let's do this one up here because i think i think this one ties out to what i was doing i'm trying to mirror it to another practice problem okay so this one is going to be amazon amazon.com california so let's just take this component i'm going to pick that up i'm going to put that in the customer and see before you'll recall i had amazon i had amazon.com incorporated now i got .com california so a little bit different or ca which i assume is california so i'll go ahead and save that so i'm going to pretend that i know what the difference is between these two and i wanted to go to a different income account i'm just making this up so i'm going to hit the drop down i'm going to say i happen to know that that i don't want it going to the other amazon income i want this one going to amazon these are my book sales i'm i'm going to be rich on the book sales i'm this isn't really my book sales i'm just making this up so i'm going to hit the drop down and we're going to say other primary income and i'm just going to call this amazon book sales just as an example to see how we have these two items coming from amazon that i'm pretending i know which income they're going to and i can distinguish the income account that it's going to be applied to like so and then i can create a rule for it so then i can say all right let's make a rule now i don't think i have any other ones that this rule is going to apply to but in the future if i did i then the rule would apply so i'm going to say this is bank text and i'm going to say this is amazon boom let's pull this one up boom and then that looks good so i could save it and then i'm going to i'm going to i'm going to search by the rules the recognized items there's the one that's recognized so i'm going to add it and then once again if i go into my into my checking account i run it that $13 of royalties makes me royal i'm going to then customize it and filter by the type i want to see deposits i want to see deposits and then the customer amazon let's say i pick both of these up the two amazons and run that so these are my distinguishing items from amazon slightly different this one's going to a different income account which should be how it does it going forward because i applied a rule to it we also have a different name which we don't necessarily need to do because you could use the same name of just say amazon for example and still have a differentiating factor between the split on the the the split on which income account is going to go in and these are customers customers if i keep on calling them vendors i'm sorry i've got vend it we were doing vendors for a long time and that's stuck in my head so bear with me bear with me here's the other side in the amazon sales which once again we just kind of put into like the label of of where it's going with the actual customer name in it all right so there is that let's go back on over see if we have any other ones we want to be picking up over here there's an audible one let's do that one if i scroll down i'm gonna i'm gonna unsort these i'm gonna go back down and we've got we've got audible let's do audible let's add those so this would be another one that you know they just give you royalties for your excellent work so i'm just going to say this is going to be audible they're owned by amazon so you could say this you might say this is still like an amazon customer in essence i believe they're owned by amazon but obviously you might want to set up a different customer it might make it easier to sort by and so i'll set up audible as the customer i'm going to make it go to a new account again which i'm just going to call the name of the customer an audible income account so it's going to be income other primary income audible income right audible income now now like notice that classically you might if you had like book sales that were audible books you might just call it audible books right which might be coming from amazon or other people that you have royalties from audible books right but you know it's also kind of easier a lot of times just to put the name of the specific customer in this case is when you're dealing with these platforms so i'm going to save it and let's make a rule we need there's rules around here so it's going to be a money in rule same thing i'm going to say bank text and i'm just going to call it audible and i don't think i need any differentiation here so i just need audible that'll do it and let's save it and then i'm going to sort it out and see if it applied my rule so it's recognized there's my audible ones so let's pick that one up i'm holding down shift to here and and let's add those at the same time accepting them back to the bank and the balance sheet that is checking account filtering the checking account by deposit deposit so we'll go on down deposit and then maybe we also filter by customer and this time audible boom so now we've got our audible transactions if i go into it we get into a deposit form that's been created from the bank feeds closing this back out scrolling up to the top back to the income statement running it and we've got our audible income line item so we're getting a quite busy and cluttered income statement with all these different income accounts which is not normally what you would want to do if you could use the sub ledgers and a full service accounting system because you could see what we're doing here which is usually like an error meaning we're labeling all of our major customers with their own income account that's not usually what you'd want to do in most businesses if you were using the invoices and the sales receipts to record income but because we're recording income with a deposit form we don't have the sub ledgers breaking out income by customer or by what we sell and because we're just using these platforms it's a pretty nice method to use to just again make the income account by customer all right let's go back on over see if there's any other ones we want to do i'm gonna i'm gonna remove this and so let's go back down so our google adsense this one should have been picked up isn't that youtube i don't know but then we've got let's go to the interest so i'm going to go into the interest and say that we have that one let's just say this is going from let's just call it the bank as the customer you might be want to be more specific saying like wells you know or whatever b of a or whatever you're using i'm going to save it there and then let's make a rule for that one a rule and i'm just going to call it the bank and we're going to say money in rule let's say bank interest rule money in so we're going to say description bank text and it says it's an interest payment so that's quite specific and looks perfect so that should be able to pick it up quite easily let's save it and then i'm going to go up top and we're going to categorize this and recognize our interest payments so there they have uh did they already add my interest payment so if i go back on to the income statement run it i should have interest income what happened so i don't think i assigned an account to the rule here so let's go let's so what i'm going to do now is i'm going to go to my rule and say okay i messed up something here and so let's go back into it and i'm going to say this is my what it wears which the specific rule i'm looking for it is the one at the bottom of course let's edit it and i'm going to say all right that looks good but i don't want to go in into uncategorized i want to make it go into a new account i'm going to make a new account it's going to be an income type of account now you might put it in other income so it goes at the bottom i'm just going to put it into a normal income account of top interest income yeah maybe i'll put it at the bottom because this is kind of like investment income and i'll put it into to uh other income and let's call it interest income and so let's save that so deposit interest bang okay so let's save it and then i'm going to go back to my banking and see if it picks up the recognized area so that now it's been recognized good so i'm going to select from here down to here and let's add accept those and if i go back into my let's just look at the income statement this time running the income statement it put that at the bottom because i called it other income so it's down here because that's not part of my normal income in operations it's like kind of like investment income so maybe sometimes you might want to put it at the bottom okay so let's stop it there for now so you can see how we're we're basically building our profit and loss here and we're you know this is being constructed mainly and this way and the easiest format possible just using the bank feeds to build in essence our our income side of the bank statement so we'll talk about then some deviations from that in future presentations where we we're gonna have to use another method where we're not getting our money just from a platform and we've got to then then enter like a sales receipt how do the bank feeds fit in there and then an invoice and then we might deal with inventory and so on and see how that complicates the situation so we'll do that for future presentations first let's right click here and just see how the trial balance is being constructed as we do this go into the reports on the left hand side close on the hand boogie and i always suggest just looking at the trial balance which i'm just going to type in to find and range change 010122 to 123122 run it so now this is basically the balance sheet on top of the income statement so kind of streamlined down here are our asset accounts and then we're down to our liability account and then our draw our equity accounts and then the income accounts that we put in here and the expense accounts and then the other income and expenses down below so nice streamlined format i highly recommend getting used to the trial balance because you can see as the report is getting longer if you get used to the trial balance you can go in here and kind of check your numbers and drill down to the source documents what by only having one report open instead of the balance sheet and the profit and loss or income statement both open at the same time as you do your data input and work through your practice through your through your accounting