Avoid Errors! Properly Recording Deposits in QuickBooks Desktop

Accurately Record Deposits in QuickBooks Desktop is crucial for maintaining clear financial records. Incorrect entries can lead to discrepancies in bank reconciliations, financial reports, and tax filings. This comprehensive guide will help ensure your deposits are recorded correctly and efficiently.

Step 1: Open QuickBooks and Access the Banking Menu

1. Launch QuickBooks Desktop and log in to your company file.
2. Navigate to the “Banking” menu.
3. Select “Make Deposits” from the dropdown list.

If the Payments to Deposit window appears, it means there are payments waiting to be recorded as deposits. In this case, move to the next step.

Step 2: Select Payments to Deposit

1. In the Payments to Deposit window, review the list of received payments.
2. Mark the checkboxes for the payments you want to include in the deposit.
3. Click “OK” to move forward to the Make Deposits screen.

Step 3: Choose the Correct Bank Account

1. In the Make Deposits window, locate the “Deposit To” field.
2. Choose the appropriate bank account where the funds will be deposited.
3. Confirm the date of deposit matches the actual transaction date.

Step 4: Enter Deposit Details Accurately

1. Under the Received From column, select the payer (customer or entity providing the deposit).
2. In the From Account field, choose the appropriate income account (e.g., Accounts Receivable for customer payments, Other Income for miscellaneous deposits).
3. Input the exact deposit amount in the respective column.
4. Add a memo if necessary to provide context.
5. If applicable, enter the check number in the Check No. field.
6. For cash deposits, leave the Check No. field blank.

Step 5: Handle Multiple Deposits Correctly

• If the deposit consists of multiple payments, enter each transaction as a separate line item.
• Ensure each entry is categorized under the correct income account.

Step 6: Specify Payment Methods and Cash Back (If Applicable)

1. Identify whether the deposit is made via check, cash, or credit card.
2. If you received cash back, enter the details in the Cash Back Goes To section and select the appropriate account.

Step 7: Save and Confirm the Deposit

1. Double-check all information for accuracy.
2. Click “Save & Close” to finalize the deposit.
3. Click “Save & New” if you need to enter additional deposits.

Step 8: Verify Deposit in QuickBooks Reports

To ensure the deposit is correctly recorded:

1. Navigate to Reports > Banking > Deposit Detail Report.
2. Locate the deposit and review the details.
3. If discrepancies are found, open the deposit entry and make necessary corrections.

Best Practices to Avoid Errors in QuickBooks Deposits

• Always match deposits with bank statements to prevent discrepancies.
• Use the Undeposited Funds account when receiving payments that will be grouped later for deposit.
• Regularly reconcile your bank account to ensure accuracy.
• Avoid entering deposits directly in the bank register to maintain proper record-keeping.
• Ensure foreign currency transactions are recorded correctly if handling multiple currencies.

Read More: The Best Financial Management Strategies for Small Businesses

Following these steps will help businesses properly record deposits in QuickBooks Desktop, improving financial clarity and reducing accounting errors.