How to Record Bank Deposits in QuickBooks 2015

By Stephen L. Nelson

You can’t write checks with QuickBooks unless you deposit some money in your checking account. You didn’t know that? Well, the next time you’re taking your exercise in the prison yard, give it some serious thought. From time to time, you must deposit money in your checking account and record those deposits in the register. You can record deposits in two ways.

Recording simple deposits

If you have a simple deposit to make — a sum of money that didn’t come from one of your customers — just make the deposit directly in the register.

Suppose that your elderly Aunt Iris sends you $100 with a note explaining how more than 80 years ago, Great-uncle Bert started his hammock manufacturing business with only $100, and for good luck, Aunt Iris is sending you $100 to help you along.

Recording a simple deposit is, well, pretty simple. Follow these steps:

  1. Open the register.

    Choose Banking→Use Register, or click the Register icon in the Banking section of the Home screen. If you have more than one bank account, QuickBooks displays the Use Register dialog box. Select the checking account into which you want to make the deposit, and click OK. QuickBooks displays the register window.

  2. In the Date column, enter the date on which you made the deposit.

  3. In the Payee column, enter the name of the person or business that sent you money.

    Don’t worry if QuickBooks adds a check number in the Number field when you move to the Payee column. When you enter a deposit amount, QuickBooks changes the Number field to DEP (for deposit, of course).

  4. Enter the amount that you’re depositing.

    Move the cursor to the Deposit column and enter the amount.

  5. Enter an account for this deposit.

    Move to the Account field, click the down arrow, and choose an account from the list. For a gift like this, you’ll likely choose an account like Uncategorized Income.

  6. Click the Record button.

    Your deposit is entered, and your checking account’s balance is fattened accordingly. Note that all entries in the register are made in chronological order, with deposits first and checks next.

Depositing income from customers

Depositing income from customers is a little more complicated if you issue invoices and receive payments because it involves using the Payments to Deposit dialog box. If you’ve recorded customer payments and told QuickBooks to group them with your other undeposited funds, QuickBooks places these payments in your Undeposited Funds account.

Now all you have to do is transfer the undeposited funds to your checking account. Here’s how:

  1. Choose Banking→Make Deposits.

    You can also click the Record Deposits icon in the Banking section of the Home screen. Because you have undeposited funds, you see the Payments to Deposit dialog box. This dialog box lists the checks that you’ve received but haven’t put in a checking account or other bank account yet.

    image0.jpg

    The View Payment Method Type drop-down list lets you see payments of only a particular type: cash, check, American Express, and so on. If you group deposits by payment type, this list works as a slick tool to group transactions that you’ll deposit together.

  2. Select the checks that you want to deposit and then click OK.

    Place a check mark (click the column) next to the checks that you want to deposit. If you want to deposit all the checks, click the Select All button.

    The Make Deposits window appears. Do you recognize the information in the middle of the window? It describes the checks that you just selected to be deposited.

    You want to make sure that the Deposit Total shown in the Make Deposits window is the right deposit amount — in other words, the actual amount truly deposited into the bank account. When you attempt to reconcile the bank account, you’ll compare the deposit total shown here with your bank statement’s cleared deposits amount.

    image1.jpg

  3. Select the checking account to receive these deposits.

    Select the account from the Deposit To drop-down list at the top of the window. And while you’re at it, make sure that the Date field shows the date you’ll deposit these checks in your checking account. In other words, if you’re not going to make it to the bank or the ATM until tomorrow, put tomorrow’s date in the Date text box.

  4. Add any other noncustomer deposits to include on the deposit slip.

    If your grandma gave you 1,000 pennies in 20 rolls, for example, that’s an extra $10 that you can record on this deposit slip. At the bottom of the list of payments, enter the name of the person who gave you the cash; the account; a memo; a check number; the payment method (cash, in this case); a class, if you’re using classes; and the amount.

  5. (Optional) Write a note to yourself in the Memo box to describe this deposit.

  6. Click the Print button to get a hard copy of the deposit slip.

    Many banks accept this deposit slip, so you can print it and put it in the envelope with your ATM deposit or hand it to the bank clerk. Whatever you write on the memo appears on the register. (You should probably write a memo to yourself in case you need to know what this deposit is years from now, when you’re old and dotty.)

  7. Record any cash back that you plan to get with the deposit.

    If you need to get cash to replenish your petty cash account, select the account from the Cash Back Goes To drop-down list, write a memo, and then record the amount of cash that you want to get back from the deposit.

  8. Click the Save & Close button at the bottom of the Make Deposits window.

    The deposit is recorded in QuickBooks. It appears in your register next to the letters DEP.