 In this presentation, we will make a deposit transferring cash from the undeposited account in our accounting records to the checking account. Let's get into it. With intuits. Quickbooks online. Here we are in our not-for-profit company dashboard. Let's start off this time by opening up our reports. So we're going to go down to the reports on the left-hand side, opening up our favorite reports, that being the balance sheet and the income statement. So let's open up the old balance sheet down here. Then we're going to be changing the dates up top, changing the dates for 2020. So I'm going to make the date range of 10120, 123120. Then I'm going to run that report. Then we're going to open up the income statement. So I'm going to go back up top, going to right-click on this tab up top and duplicate this tab. Back to the tab to the left, may not actually need the income statement, but I'm going to open it up anyways. We're going to go back to the reports down below on the left-hand side. And let's open up the income statement or PNL by class. That's probably the one that you're going to be using most often here. So we want to say the profit and loss by class. It's in my favorite reports because we put the little star next to it. If you didn't put the little star next to it, it's going to be under the business overview. But I'm going to be picking it up here from our favorite reports. Profit and loss by class. Changing then the dates up top, we're going to go back up top. The dates from 010120 to 123120. Then we'll run that report. Then I'm going to go back up top and duplicate this tab. We will right-click on the tab up top, duplicate that tab. Okay. So now I'm going to go back to the balance sheet. Let's take a look at the balance sheet on the right. And you'll recall last time I'm going to close up the old hamburger here and then I'll hold down control, scroll up just a bit so we can see it a little bit more clearly. We had last time we put money into the undeposited funds, so it goes into undeposited funds. Now we did this as a group deposit, imagining kind of one transaction, all deposits together. But you can imagine multiple transactions that would go into a cash being received for the undeposited funds. And then we need to deposit them at, let's say, the end of the day. And that's what we're going to do now. We're going to take it out of undeposited funds, put it into the checking account. Why didn't we just put it into the checking account in the first place? I could just have this $189.7 in the checking account already because we need to do the bank reconciliation. And when we do the bank reconciliation, we need our books to tie not only the dollar amount, but there's going to be outstanding items typically. And therefore, we want to be able to check off every transaction in our account as it will show on the bank statement. Therefore what we want to do is if we have cash transactions or transactions that are going to differ in the way they're going to be deposited into the books, into the bank account, we want to group them in the similar fashion as they will be seen in the bank account. So you can imagine if we get a bunch of cash deposits or a bunch of cash during the day, then if we just keep on putting it into the checking account, we're going to have a lot of small items into the checking account, a lot of small deposits. And those small deposits, we're going to have to add them up when we want to reconcile to what happens on the bank statement. So in order to stop that, in order to be able to make the reconciliation process a lot easier, and we should be doing bank recs, then we can we can say, okay, we're going to put it into this undeposited funds. And then when we go to the bank, we're going to group them together, deposit them into the bank in the same format as they will be seen on the bank statement. That's the idea. So let's do that now. We're going to go back to the first tab and let's go to the new item. I should minimize the screen. I'm going to bring it down to like 100% again so that the screen doesn't do anything funny when we look around in it. We're going to go to the new item, and now we want to look at a deposit. So we're looking for the bank deposit. That's going to be over here, the bank deposit. Now, as we set up the bank deposit, we could add the account. We don't actually have a checking account yet, or we can add the checking account before we do this. Let's actually add the checking account from the chart of accounts. So I'm going to move out of this item. We're going to then go down to the accounting down below. Let's take a look at that old chart of accounts, the chart of accounts. So then the chart of accounts is going to be in order by type. Now we have a bank type of account, but that's that clearing account, the cash on hand account. Let's go ahead and set up our primary checking account. When you set up the primary checking account, you'll note that it can be a little bit more confusing because the system might try to get you to set up the bank feeds for it. And you can set up bank feeds, meaning connect to the bank and have the bank account help you to enter the information. But as you do that note, you're still going to need to understand that the basic accounting working. So I would still, if you're going to use bank feeds, think about this whole process, think about how to do it without bank feeds and then set up the bank feeds. And you'll be able to then take that data that you have and assign it out more easily because you'll know how the forms and system work. So in other words, bank feeds don't solve all your problems, right? If you just transfer all the bank feeds in there and you don't have the classes set up or the proper accounts and you don't know where they're going to go, you're going to get overwhelmed. So what you really want to do is learn how to set the whole thing up, think about how you'd enter it possibly without the bank feeds and then work the bank feeds into the system. So that's just something to be aware of. All right, anyways, I'm going to go back up top. We're going to say the new and I'm going to say we not a new account, not an import, but a new account. It's going to be a bank type of account. And we're going to make this one just the checking accounts. I'm going to call it checking account. Let's just call it checking. Now you might want to put like the last four digits of the account number or something like that to differentiate it. If you have multiple bank accounts that you're going to be working with, note that when you format the reports, you're going to see these on the balance sheet and the income statement. So there's different kind of formatting tricks you can use because basically you want to be using and seeing these reports, both for an internal use and for internal use, having something like the last four digits of the account numbers can be useful and then format the reports for external use that you could provide to somebody else. And in which case you may not want the last four digits of the account number on there. So note one way that you can deal with that is you can have a bank account subcategory. And then when you provide reports to somebody else, you can have a subcategory that won't provide added detail. It'll sum up the account numbers together. Or you can format your reports in different ways and export the reports, for example, to Excel, where you can delete the account numbers as well. So that would be one way would be with the use of the subcategories because you want to be able to make it as easy as possible internally to go back to your reports, the trial balance, the balance sheet, the income statement, and see what accounts you're working with and things like the bank name could help or the account number could help. And then when you provide external reports, you want to make it as easy as possible to generate those external reports for external use and the subcategories can be useful with that. So I'm going to say save and close here. All right, now that's going to be set up. Now let's go to the new button up top and now let's go to the bank deposit. So we're going to go to the bank deposit and so we're going to want to make sure we pick up the right account here and now we're going to be picking up the checking account. So I want to pick up the checking account that's going to be deposited into. The date's going to be January 2, 2020. The items down below, you have the items down below showing, notice this item here is going to be the item from the sales receipt that we created. So we had the sales receipt that went into the undeposited funds, which is going to be this item. And then if you had a deposit that wasn't from a sales receipt, it would be down here. In other words, when you go to the deposit screen, these items up top, select the payment included in this deposit, will be items that will typically be through the stream or flow of the normal accounting system, meaning when you get a sales receipt, it goes into this undeposited funds, which will then populate here automatically and you could just check them off. However, if you got some other kind of deposit for some type of reason, let's say there was a loan or something like that and you wanted to use the deposit form, then you could go down here and you could just simply enter the account number, the account for it. So I'm going to check this off. I'm going to check this one off. This is probably the only one you see the donor here. Again, this one was a zero transaction that I did. I'm going to check it off on my screen, but it's not going to be there for you in either case. It's going to be for the $189,700. The $189,700, that's the deposit. Now again, we just only have one deposit here. You can imagine this $189,700 being multiple type of deposits that we had that we're now going to put into the bank in one group sum. That's going to be the point. Typically, we may have multiple different deposits that we want to put into the bank at one lump sum. If we had not had that been the case, if we only had this one deposit or if we only make deposits one at a time, then when we made the sales receipt, we could have just put it into the checking account at that point in time, because that's the same format that it will be seen on the bank statement. But if there's a difference, then we want to go through here and check off the multiple items that will typically be on the bank statement so that they will shouldn't show up in the same format as on the bank statement. All right. So now we're going to say save. I'm going to say save and close. And let's see what the impact is on the balance sheet. So let's go back on over to the balance sheet and we're going to scroll back up top and run this report. I'm going to make this a little bit larger, holding down control, getting back up to that one to 5%. Then we have in the checking account now, there's the $189,700. It has now been removed from the undeposited funds. Note that the undeposited funds still shows that zero balance, which is nice for our auditing purposes. I can go in there and say, oh, there it is. There's the amounts that are going in and out of this account. In other words, it doesn't take it from the report even though it has a zero balance in it. I'm going to go back up top and I'm going to say back to our report summary. Note that if you wanted to remove it from the report, this item here says active. It says show rows that are active. And when it says active, that'll include the zero balances. But you could say, hey, I just want to see non-zero items and then say run this report and it'll actually remove the items. All right, let's try that again. I'm going to hit the dropdown. I'm going to put non-zero for both of these this time. And then let's run that report. And then it should be removing the non-zero items. So all the items on here that are non-zero have been removed. And now we're left with basically just, obviously just the checking account. Then we have the subcategories and the equity down below, which everything is included in the net income. That net income item then can be found in the profit loss. If we go on over to the P&L, close up the old hamburger. No change to the P&L. That's at the $189,700 bottom line net income. If we go back to the balance sheet, that's $189,700 here as well. So that's going to be it for now. Let's get out of here.