 QuickBooks Online 2023 bank feeds matching sales receipt to bank feed deposit. Get ready to start moving on up with QuickBooks Online 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 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 two open at the same time we suggest using incognito or another browser. You can open incognito if using Google Chrome by selecting three dots up top in the browser and picking incognito window typing 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. You can toggle between the two by going to the cog up top switching the view down below. We're now going to duplicate some tabs like we do every time to put reports in right clicking the tab up top to do it to duplicate it right clicking the tab up top to do it to duplicate it and then we're going to go to the tab to the middle the first duplicated tab that we duplicated from the first tab and then we're going to go to the reports open up that balance sheet report which is one of the favorites it's your favorite report too it is your favorite it's everyone's favorite okay and then in the business view by the way it's in the business overview reports on the left hand side and there you have the reports tab into the right we're going to go down to the reports again on the left this time the profit and loss the other favorite reports yes that's your favorite too everybody loves these two you might call it a different name they have different names like nicknames like an income statement oh one oh one two two twelve thirty one two two all the great stew they got lots of names so i'm going to go tap to the middle close up the handbooky change the range oh one oh one two two tab twelve thirty one two two tab uh twelve thirty one two two tab run it to refresh it let's go to the first tab open up the bank feeds because that's where we're working we're on the banking tab on the left hand side easily seen on the accounting view banking up top if you're in the business view then you're going to the bookkeeping on the left hand side which is not quite as intuitive for the bank feeds but still not bad then you got your transactions bank transactions okay that's the setup process we do every single time we're now looking at the revenue side of stuff down below i've sorted the detail of the bank feeds first by the bank detail and then by amounts so i've got my revenue stuff up top and we're now going to consider a situation where we have a sales receipt so if i hit the drop down remember there's a couple uh revenue forms we could use to record revenue the invoice now the sales receipt and then we could use a deposit form let's take a quick look at the flow chart to analyze the process so remember at the end of the day we expect to be getting cash at the end of the customer cycle that is however the cycle could be more or less complex depending on the industry if we're in gig work we might be able to wait till something clears the bank use the bank feeds to record revenue with the deposit form but that's not the natural full service system that QuickBooks is designed to use and we use we lose a little bit of detail such as sub ledgers for things like income by customer and income by item but that might be well worth it if you can do that then a step away from that still a cash based system but not a system where we can just simply depend on the bank to record the transaction would be a cash register situation for example in which case we would use a sales receipt and then the full accrual system would be one where we do the books first and then we have to make an invoice so last presentations we've been talking about the whole accrual process if you're in that kind of industry where the bank feeds fit in where we said they could fit into making an invoice trying to connect the bank feed to that receive payment trying to connect the bank feed to that or recording the deposit and just simply matching the bank feed to that and we could at the receive payment area record that as a deposit on our end and match the bank feed to that so we have a similar issue with a with a cash receipt or a cash register type of situation where we're going to get we're going to get sales that we're having at the point of sale so we're going to want to record them at the point of sale but usually if you're at a cash register at like a food truck or restaurant or something like that you can't simply wait until you finish the day's work and then deposit whatever cash you have or however the deposits are being made to the checking account wait till it clears the bank and then record it as revenue on your books using a deposit form with the bank feeds you can't really do that because you're losing a lot of internal controls if you're using a cash register what you're typically going to want to be able to do is record the receipts as you make them at that point of sale and then be able to double check say your cash sales to what you have in your cash register physically counting the cash comparing that to the cash sales to make sure that they tie out and then when you make the deposit into the checking account if the cash deposits you're going to deposit them as one lump sum if their credit card amounts then the credit card company is going to have to package them in some deal in some way typically and then put those into your checking account in some kind of format so that means we're usually going to use the sales receipt form even on a cash based system not simply a deposit form when we're recording the transaction so we can't do that by just waiting till something clears the bank and construct our books with the bank feeds then so then you typically have a situation with the sales receipts where you might get multiple sales during a day let's just take the cash for example and if you get multiple cash sales then you have this kind of situation where you can't really just deposit it into the checking account when you make the sale because you can imagine a situation why don't I just every time I make a sale I use the sales receipt to basically increase the checking account you could do that but it would only work if you've got if you got a separate amount that's going to hit the bank account for each sale that you make like if they were electronic transfers or something like that or you're receiving an actual check because then what you're going to need to do is check that to the bank statement in the form of a bank reconciliation or in the form of the bank feeds and that's going to be part of your internal controls but if you have a situation where you have multiple cash sales then you're going to have to put them into that clearing account which is undeposited funds or funds to be deposited and then deposit them into your checking account in QuickBooks and the same grouping the same format that is going to be used on the bank side of things so that you can reconcile possibly with the help or the use of the bank feeds so you've got that added step that's naturally almost always going to be there because if you're in a credit card situation you're usually going to have multiple sales that you have by credit card or in cash that you're going to want to verify the sales that you have to the recording of the sales receipts and you're going to want to deposit them into the bank in the same format as they're going to be grouped on the bank statement which is not the same format on a sale by sale basis typically because of the way the credit card company is going to work or because of the way you're going to group all the cash together and deposit it at one time not having separate like five dollar deposits as you deposit them into the checking account so let's see that in an example so I'm going to right click the tab up top and let's just imagine we're at a cash register now so in your mind we're at a cash register and so I'm going to say let's let's pick up let's pretend this one was cash receipts uh of of this one thousand uh three seventy eight oh five so I'm going to go okay let's go to the first time and I'm going to hit the plus button and we're going to go into a sales receipt sales receipt situation let's say this is customer customer number what are we on let's just say 10 customer 10 I skipped a few and so we're going to go boom customer 10 bam and let's say this happens on let's say uh 10 15 22 is where my numbers are at and then down here I'm going to say that we have it looks just like an invoice but now it's a sales receipt right so I'm going to say let's just say we had hours and I'm just going to try to match it out to here which is the 137 805 so I'm going to say okay 137 8.05 now I'm going to I'm going to imagine this one I deposit directly into the checking account this is not the way I think you're going to be able to do it most of the time because notice if this was like a cash sale again or a credit card sale then this dollar amount isn't necessarily what's actually going to hit the checking account because I'm going to group together multiple sales possibly or the credit card company will when I actually deposit them physically into my bank so I won't be able to to basically connect so so that means my bank's going to have a different grouping so I'm going to try to show the two methods that you could use though however so if you've got for example electronic transfers then maybe you could do it this way because that means it's going to hit the bank for this exact dollar amount but if it's cash or credit card you might have to use the undeposited funds so let's just imagine like the easy way first this is going to be an increase to the sales driven by the item down here and an increase to the checking account driven by this item let's go ahead and save and close it save and close and then if I go back to the balance sheet tab and we run it running and I go into the cash now it increased the checking account so if I go into the checking account with a sales receipt that's the other thing that be a little bit you might want to think about a little bit it's not a big deal that you have an increase to the checking account with a sales receipt but when you think about the increases to the checking account notice we have multiple things here now we've got the sales receipts the deposit and the payment forms so if I wanted to sort for example up top for the increases to this account I'd have to say filter transaction type I'd have to pick up three things there might be a payment form there might be a deposits that increase it of course and now we've got the sales receipt that could increase it so if I do that that's a little bit more tricky just for the filtering to kind of pick up those different kind of things that could all be increases to the checking account which you would not have if you used the clearing account method but that's not a big deal just something to kind of be aware of and then I'm going to go back on over and the other side is going to go into the revenue account on the other side of things running it we're in the service revenue boom service revenue services and then we've got our sales receipt sales receipt going into it and that looks good and because you're using the actual sales receipt and you're adding an item you do have the sub ledger reports now because now you're using a full service type of system so if I ran for for example subsidiary reports now if I right click on this and duplicate it and I'd said I want to run a report that's going to give me my sales by customer or my sales by item what I sold I can go to the reports on the left hand side and let's just say sales sales by customer so let's just do the summary sales by customer from I'm going to go from 0 1 0 1 2 2 to 12 3 1 2 2 or run it and so there we have that so now we've got our sales broken out by who we made the sales to and it adds up to that 2 9 4 3 0 5 so notice our total sales are this 9002 it's not tying out to total sales because most of these sales I made using a deposit form remember all these sales I used made it making a deposit form which isn't what QuickBooks is kind of designed to do that means you lose some of that detail but this one for example most of these are in place with an invoice or sales receipts the forms QuickBooks is designed to use and therefore you have this subsidiary report so if all your sales were made with invoices and sales receipts and you assigned a customer which you pretty much have to do if you're using those forms this report would basically tie out let's let's open another one just to see the sales by item so that's why usually on the income statement you wouldn't break out all of your income lines by customer like we did kind of here unless you're doing like gig work or something like that so let's go on over here and look at sales sales by product service let's do that one and go from 0 1 0 1 2 2 to 12 3 1 2 2 run it running so now we've got the actual things that we sold which once again ties out to the 2 2 9 4 3 here only the items where we actually used invoices and sales receipts are being picked up here if you used if you only recorded revenue with the forms designed to do so invoices and sales receipts and you assigned an item inventory or service item the thing you sold this would tie out to basically your total income over here and therefore you would only want usually your idea would be only to have a couple income line items and then all the detail would be broken out in the subsidiary reports unless you're recording with deposits okay let's go to the first tab or the second tab and say how do the bank feeds fit into this if I refresh this it might pick this one up now the dates are wrong because this date is actually before the one that I put in place so but let's try it let's refresh it actually did I do the Google or did I do Skillshare I can't even remember get your head in the game this is serious crying out loud I think I did this one it's still the dates before so it might not pick it up I might have to change the date but I'm going to go into it and see if I can match it and so there's the invoice so the invoice is actually I think I tied it out to 1378 this one so let's try this one and that one's way before so let's see if I can match that one and it doesn't give me anything to match it to I'll let's change the date up here and bring it up to the end of October that's when I entered there it is okay so there's the sales receipt now obviously you probably wouldn't have this big difference in the dates so it would find it if this sales receipt was closer in date I made the sales receipt actually after the deposit which is why QuickBooks wouldn't have picked it up you would think by by default if this was put in there before the date that deposit happened the correct time frame then you would think QuickBooks might pick it up and let's just test that out just for the fun of it if I go back on over here and I say let's say this happened let's just change the date on it to 81 and see if QuickBooks this date sale rate don't mix okay sales date is going to be okay let's do that I'm going to save it and close it hopefully I didn't mess anything up horribly and then I'm going to go back here I'm going to close this out and I'm going to refresh the screen refresh the screen with a refresh button and see if QuickBooks picks that up because it's basically a deposit now so yeah so now it matched it so now it found it so so there you go so it should kind of do that because you the sales receipt is kind of like a deposit form now when I match this when I actually hit match it's not going to do anything it's not going to record anything new because the deposit had already been made although it wasn't made with a deposit form it was made with the sales receipt so I'll match that out and boom that's one method that can be used now the next method that we'll take a look at is if I run this by amount again let's use this one and let's imagine that we have two sales receipts that come up to this amount of 1,015.25 so I'm going to go back to the first tab and I'm going to say we're going to say this is going to be another sales receipt and let's imagine this is going to be customer 10 and let's get the date right this time this is on 919 so let's say this happened on uh 090122 how about that and then down here let's say it's a cash sale but this time I'm going to put it into the clearing account I'm going to put it into the clearing account because they're cash sales and I expect to get multiple cash sales that I'm going to group together put into the bank at one time so if I put this directly into the checking account it won't match what's on the bank feed or bank statement for the bank reconciliation because so therefore I have to use this clearing account so let's say that this is going to be ours and let's just say this one is going to be a thousand and this is going to do the same thing it's going to increase but this time the clearing account and then the other side is going to go to revenue and I'm going to make another one here save and new and this is going to be to uh to the next one here let's say this is going to be to customer custom I'm just jumping up to 15 we're just going to make a leap a leap to 15 here because we got all the numbers in the world that we can choose from and let's make this cash too it's going to go into payments to deposit and let's go into my nose is really itchy stay focused stay focused okay 15 25 let's make this 15.25 15.25 15.25 right 15.25 yes okay so these two will add up to that deposit this will do the same thing for 15.25 let's save it and close it save and close so so now if I go to my balance sheet I'm going to say run it and if I go into my payments to deposit account going into it we're going to say now we've got the 15 and the 1000 which of course ties out to this amount but it's got two different dollar amounts that's why we had to use the clearing account so then I'm going to go back and then the other side went to the income statement so if I go to the income statement it's in of course let's run it to refresh it don't get ahead of yourself don't get ahead of yourself but I'm so slow I hate waiting for myself so you got to wait for yourself so it's going to be these two okay so there's those all right so then if I go back to the first tab then now we've got this amount in the payments to deposit so basically we're right here on the flow chart so if I was to do this internally then I can make the deposit so at the end of the day we're imagining we go to the bank physically deposit 1015.25 as one lump sum or you can imagine a credit card grouping the payments together for 1015.25 putting that into your bank account physically going into your bank account so that means on our side we have to transfer it from here to the checking account in that one lump sum so I could do that internally go into the first tab plus button and the bank feeds and then the bank feeds has this nice little widget thing up top where I can group my sales receipts and payments in the same way we did before so this this top grouping groups sales receipts and receive payments and so I could group those together and deposit them as 1015 if I record this deposit that way then my deposit would be recorded as a deposit increasing the checking account the other side decreasing that amount to be deposited the clearing account going back to zero and then I could basically just use my bank feeds to verify the deposit once again the bank feeds would not be doing anything new there they would just be double checking the deposit helping us out with the bank reconciliation or I could say okay maybe I'm going to try to well that's basically what I have to do you could try to say I'm going to try to wait till something clears the bank right you might say I'm going to try to wait till it clears the bank and then connect that to to the received payments and let's just take a look at that it's a little bit more difficult to do that though because now if I let's say I refresh this screen I'm going to say refresh the screen and see if it kind of picks anything up I doubt it will because it would be more difficult for it to do though so see here's the Skillshare right you're saying well why doesn't it match I've got that amount in in the payments to deposit but if I was to match it here I'd have to go to match find a match and then I'd have to check both of these off in order to match it so you could do it right like I could go in here and just check both of them off to match it but it's a lot more difficult because now you're trying to you're trying to see what cleared the bank you've got multiple items that cleared that I'm sorry one item that cleared the bank and multiple items on our side that you're trying to connect together in order to in order to fix it you're basically doing a bank reconciliation where your deposits don't match up on your books than the other books they match up in total but the amounts of the deposits aren't quite right so you're kind of forced to do it the other way really you're kind of forced to say okay I'm not going to record that I'm going to do you want to leave without saving yes you're kind of forced to record the deposit this way and then and then just match it to the bank feed so if I was to record the deposit this way save and close then I can go to my my checking account go into my checking account and so now I've got that deposit of the 1015 right here as one lump sum now instead of two and then I can go up top and my payments to deposits are back down to zero going into that but it's coming back out here with the two amounts so I can see them going in and out which is good and now if I go into my bank feeds I can just match out helping us up with the bank reconciliation and it'll probably pick it up since it doesn't need to match out two items in our books to match that one deposit so let's try to match it out again I'm going to refresh it and say is it going to pick it up I would think it should this time if it doesn't then there's a problem see it picked it up it knows what it's doing so there so there we have it so that's kind of how you almost have to do it with the sales receipt so if you're at a cash register situation you almost have to use that undeposited funds and then you're probably going to have to group the deposits on your end which means you're just going to be using the bank feeds in order to match if I record this it's not going to do anything new it's just helping me tie out what's on the bank to what's on the book double checking that that is indeed the case so so companies that have a cash register are probably going to still be doing a full-service cash-based system instead of relying on the bank to record the revenue side of things due to the logistics of the business they're in but may still be on basically a dependent on the bank feeds cash-based system for the vendor side or expenses side of things because they might be paying all their expenses with basically automatic transaction forms so they can basically automate so the revenue side even for small businesses will often be dependent upon not simply the size of the business but what what's the standard norm for collecting revenue for that particular business and what's going to work best for you so you got to kind of think through that stuff before you set up the bank feeds or else you can end up with a mess let's go to the tab to the right and just take a look at our trial balance see where we stand at this point in time just to see what's been built as we've been going we haven't been doing this every time because we kind of deviated from a full trial balance just from the bank feeds but 0101221231 you're kind of rambling this time I'm not rambling this is this is clear as day so but most of this stuff you can see how this is a lot cleaner than the balance sheet in the income statement see and and so we're we're I highly recommend taking a look at basically using the trial balance it's a lot cleaner of a report to look at and have open while you're doing the data input and you can see we're constructing our financial statements mainly from the information on the bank feeds