 QuickBooks Online 2022. Bank feeds, matching deposit from customer. Get ready because it's go time with QuickBooks Online 2022. Here we are in our bank feed practice file. We set up with a 30 day free trial holding down control, scrolling up a bit to get to the 1 to 5% currently in the homepage. Otherwise, no one has to get things done paid. Change the business view as compared to the accounting view. Changing to the accounting view is 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. Back on over to the bank feed practice file. Let's open a couple tabs to put reports in by right-clicking the tab up top and duplicating it back to the tab to the left right-clicking again. Duplicating again. Let's see where the reports are located in the accounting view. Jumping over to the sample company in the accounting view. The reports are on the left-hand side. Going back to the business view over here in the bank feed practice file. Reports in the second tab located on the left-hand side. Business overview and then in the reports and then I'm going to close up the hamburger and go down to our favorite reports starting with the balance sheet. The big balance sheet and those ranges. They are a change in 010121 to 123121 and run. Tab to the right down to the business overview again into the reports. Closing up the hamburger profit loss otherwise known as the income statement. We're ranging the change in up top from 010121 to 123121 and run. Okay let's go to the first tab and open up our bank feed stuff. So we're going to go into the first tab over here. We're looking at the banking information because we're in the business view bank feeds and the transactions up top and then in the banking. If you were in the accounting view it would be located in the banking on the left-hand side and then in banking up top. This is where our bank feeds have been imported from the bank and they have not yet been included into the promised land of the financial statements but are in bank feed limbo needing a little information a little love including at least an account to assign them to possibly matching them to a transaction we have already done which is what we will see this time. So let's go to the flow chart to see our example. This is a desktop flow chart but it's just giving us an example of the flow as we go through the customer section or the revenue cycle. So we can see down here we're looking at the customer side of things on the bank feed obviously we're looking at the end of the process which is an increase to the checking account. Our deposit type of form typically would be associated with that but if we're in the type of business where we have to invoice the customers before we get paid like an accounting firm or CPA firm or bookkeeping firm we would have to invoice the client which would be an accrual type of thing that would increase the accounts receivable the other side go into revenue of some kind typically and then we'd have to track the receivables and get paid on the receivables we looked at last time we could match the bank feeds to this step but and now we're going to say we've received the payment so now we're going to get the payment at this point in time at this point we could take the payment and put it into the checking account at that point or we might be putting it into a clearing account which used to be called undeposited funds now funds to be deposited or something like that that we would put it in possibly because you might be in a situation where you have multiple deposits that you get or receive payments that you get possibly with cash or possibly with credit cards for example where you're going to be grouping multiple of these payments that you've got together together before they hit the actual bank account therefore when they hit the bank account there's going to be a lump sum of multiple transactions which is why you might need a clearing type of account in that instance you would probably have to go through the whole process on our end the normal accounting process until you actually make the deposit how do the bank feeds fit in then they're going to be matching out to the deposits you already made not recording any new transaction but rather just matching the transaction that you have already done possibly helping you out with the bank reconciliation which is what the bank reconciliation is there to do so let's let's check it out and let's see it let's see that process i'm going to i'm going to choose a payment that we're going to look at here let's say we're going to use this nine cent interest and pretend that comes from a customer a deposit from a customer i know it's a small amount and whatnot it's really interest but you know bear with me it's an example it's an example right click up top i'm going to duplicate again so we can make the whole invoice and do this full process i'm going to make two invoices that add up to that nine cents and then collect payments on both of them and deposit them so we can see this full process so i'm going to hit the drop down up top with the new button and let's make a couple invoices let's make a couple invoices shall we i think we shall i shall make a couple invoices it's taken a long time this is going to be customer uh six i believe we're on and i'm not very creative with the customers customer six i should make up some nice names to make it a little bit more interesting but no we're just going customer number six blah blah blah and then we're going to go through and i'm going to say make sure this is in 2021 this time let's make it 03 15 21 and then i'm going to go down and i'm going to call this a service item one not dealing with inventory yet we'll talk about inventory later let's say this was for three cents which is ridiculously small dollar amount i know but it's you you get the point it's the point of the problem not the fact it's a small dollar amount it's not even a dollar it's not even barely a fraction in any case what's this going to do it's going to increase the accounts receivable it's going to increase the sub ledger for customer number six by the 30 cents other side's going to go into revenue let's save and new let's do another one because we need two transactions adding up to the nine cents so i'm going to save it and knew it save it and knew it this time and let's do customer number seven you might have been able to guess that customer number seven then comes in and's like i want something customer customer number seven setting them up we're going to save that and they come in and say like we need stuff too let's make this on the 16th possibly and we're going to say this is going to be a service item service one and they want something costing nine or costing six cents because three and six add up to the nine to tie out to that deposit so what's this going to do it's going to increase the accounts receivable by the six cents increase the sub ledger for customer number seven and increase revenue let's check those two out by hitting the drop up or rise up it's a drop down but it's a rise up because it's up top and i'm going to save it and close it and then let's go into our financial statements and see if it does what we would expect at the point of the invoice i'm going to go up and say run it again because i only work with fresh reports here i could tell it wasn't fresh there was no steam rising from this report like it just came out of the oven so then i'm going to go down and say this is going to be sixty oh nine in the ar so there's the three there's the six adding up to the nine looks good so far so far going back on over and then the other side is going to be on the revenue so let's go to the to go to the income statement and run it run it and then we're going to go down into the services and check it out so there's there's the three and the six there that looks good looks like what we would expect going back on over let's open up our sub ledger breaking out the information by customer supporting the accounts receivable which is the reason we want to enter the invoice duplicating the tab to do so and then i'm going to go back into the reports on the left back into the reports closing up the hand boogie and i'm going to type in this is going to be the customer balance detail customer balance detail that's the one we want that's what we want so there's customer six and there's customer seven there's our two customers i could go to the second tab here we could check that out another way as we might be tracking if we were in the business we might go into the get paid and paid area into the customer section which if you were in the accounting view would clearly be under the sales area and then the customers tab up top and then we're going to go down and close up the hand boogie and we can go down and we say there we have the three and the six here so the next items are we're going to be receiving payments for these two customers so i'm going to i'm going to do that so now we're in the second step receiving payment which i'm going to put into undeposited fund and then deposit it okay let's do it now i'm going to go and let's go into this one here actually go into it and then i can see the invoice itself i'm going to say receive the payment from the customer customer number six came in and said i'm going to pay you now and we're like great we really need that's three cents and we're going to put it into the payment here which was the undeposited funds it's just a clearing account what's this going to do it's a receive payment it's going to decrease the accounts receivable the other side is going to go into the clearing account of undeposited funds instead of us putting it directly into the checking account because we're going to get multiple of these payments and change most likely and then deposit them into the bank account at one lump sum time so that when it goes into the bank account it will be at one lump sum of nine cents as opposed to three and six okay so let's save it and close it and let's do the other one too before we stop i'm going to open up the the small hamburger the mini hamburger that's my snack burger until i get to lunch where i hit get the big hamburger so this one is going to be customer number seven and then let's close up that mini hamburger and then we're going to go down here's the invoice customer seven seven receive the payment receive the payment on that one and this happened seven so that looks good so we'll say okay it's going into undeposited funds again checking it off this is going to decrease accounts receivable because it's a receive payment form sub ledger for customer number seven and it's going to go into the undeposited or clearing account used to be called undeposited now called payments to deposit account okay let's do it we know what it's going to do just just record it for crying out loud would you run it up top we're going to run it i'm just trying to explain stuff in case people don't don't get we're going to go down here and then say we're going to say this is in the payment to deposit area there's our nine cents comprising of the three and the three and the the six here right there they are ready to be deposited we got to run to the bank somebody run to the bank we've got six cents i don't want to get robbed i'm going to go to the tab to the right we're going to run this report again and i already did there's nothing on the income statement where's the other side the other side is in the accounts receivable the a to the r a to the r focus getting distracted it's in the ar so there it is the three and the six have now been decreased here one at a time and so there there they are so going back on over if i go to my ar detail report on the right hand side then running that again you can see those two those two seven and six customers are gone but if i look at the detail for them customizing this filtering saying i want to see all the stuff here all the stuff stop hiding stuff from me you better stop hiding stuff here we go we're going to go down here there there we've got the three and the three the six and the six matching out the invoice in the payment now if i go back to the balance sheet we're going to do the last step here on our side not being dependent on the bank i don't need the bank i can do it myself we're going to take this payment and we're going to put it in to the deposit completing the last step combining those two payments together as one deposit as if we took that big six cents or nine cents and went to the bank and deposited it as one lump sum then match out the bank feed to it to help us out with the bank reconciliation okay let's do it let's go to the let's go to the second tab to do that holding control scrolling down a bit i'm going to go up top why is this why is that thing there okay quick books was being stupid so i had to refresh the screen but i'm back now i fixed it i fixed it don't worry people i fixed it we're going to go in then and we're going to say let's go to the deposit on our end not from the bank feeds now we're going to deposit it it first and take it out of that clearing account so we're going to check them both off checking them both off so the deposit then we're going to put in our checking account and our books at the nine cents it's going to come out of the clearing account which was undeposited funds before now it's called things to be deposited but it's going to come out of there one at a time the o3 and the o6 and then we'll use the bank feeds to tie out and match out so let's do it let's save it and close it and see that final step and then we'll reconcile then we'll reconcile it so i'm going to go then to the balance sheet and freshen this up again freshen it up put that back in the microwave make sure it's warm i only it's got at least be warm and then we're going to say that this is going to be then the deposit that happened for nine cents there it is nine cents right there nine cents one lump sum deposit i'm going to go back on over to then our report the other side is coming out of the out of the payment to deposit used to be called undeposited funds it's going to come out here in two transactions so you can see it and you can take and tie the three to the three the six to the six and so on and so forth seeing the detail okay going back up so now let's see how the bank feeds are going to fit in the bank feeds aren't going to do anything new here because we already made the deposit the bank feeds then are just going to be verifying that we did what we're supposed to do and that's really what the bank's feeds are supposed to kind of do in a full service type of system because because you know it should be in an internal control also just realized that you you may have the same situation with the create sales receipt if on a cash basis method where you could take those sales receipts and then deposit them over here now whichever method you use now we've got the deposits actually in the system which we can help with the bank reconciliation process by using the bank feeds to double check that they have then cleared the bank now the system oftentimes once we enter the deposit is much more likely to be able to match out the deposit that we made to to what is in here because it knows it's going to be a deposit now it only really has the dollar amount to base it on and possibly the date to help it out with but if we didn't work this in reverse order then it would probably pick up or imagine or try to find in market office matched as a deposit but if it doesn't we could go to the matched area here and then say let's change the date let's bring it on back to a to a relevant range for us because i haven't been very good with the dates here and then we're going to say this is going to be that deposit that's the one that is the one right isn't it yes it is so we're picking that up so this isn't going to do anything new this is just going to match it out so we're just going to say all right i see that deposit came through it's a legitimate deposit i see that it matches out to what we did nothing new being recorded but it possibly could help us out with the bank reconciliation as we tie out what we did on our side to what happened on the bank side giving us an internal control which is the process of reconciling the bank account