would you like to know the proper way to record depositing income when you keep home
financial records well then keep watching this video
quickbooks online for home finance depositing income
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it is extremely simple to record depositing income when you are using quickbooks online
for your home finance records first simply open the register of the account you are depositing to
then record all relevant information like what the reason is whom you received it from how much money
and so on then just check the results in the trial balance for example let's imagine on january 7th
of 2021 we received a thousand dollars from molly's saloon for bartending income earned and
we deposited check number eight four seven seven two into m t bank now what will be the results
well right now the trial balance is blank but after recording this first deposit of a thousand
dollars into m t bank m t bank will show up in the trial balance for the first time as
a thousand dollars and because this was earned bartending income bartending income earned will
also show up in the trial balance as a thousand dollars let's take a look at how to record it
you can open the account register two different ways you could click accounting chart of accounts
or you could click the cogwheel and go over to the your company column and click chart of
accounts both would open the chart of accounts window simply scroll to the row of the account
that you're depositing the money into and in this case it's m t bank and we click view register now
we want to make sure that this is not set on expense make sure that the type of transaction
when you click the pull down is deposit the date will be january
7th of 2021 now even though molly is not a payee she's a customer but she's still the person in
the transaction so we'll put this person and the reason we got this money was bartending income now
it's hard to scroll through many many accounts it's easier to simply type in the first letter
of the account you're looking for and it will filter it by that first
letter and you can see here it is bartending income go ahead and click
now you must make sure to put the number in the correct column or you will have a problem later
this field is required because you chose deposit so click where it says deposit
and push tab type in the money amount of a thousand pushing tab saves the field but keeps
the window open now you might have to scroll to the right a little to get the save button but
after we click save remember we earned a thousand dollars of bartending income from molly's saloon
click save now when we click reports trial balance the results are as exactly as what we expected
a thousand dollars is now the balance of m t bank and we now earned a thousand dollars in bartending
income what about this example let's imagine on january seventeenth we deposited five hundred
dollars from the beer and go but also for bartending income and it was deposited
to chase bank and of course you're supposed to type in a number in the number field as well
so what will be the result after i record that transaction well chase bank will show up for the
first time as 500 because now there's a balance and we have earned 500 more of bartending income
so bartending income will become fifteen hundred dollars so let's take a look at how to record that
we click accounting chart of accounts and this time the account that the money is being
deposited into is chase bank so on the row of chase bank we click view register and make sure
that deposit is selected now the date was january 17th of 2021 and it was for whom well it was uh
but molly's it was the beer and go and we earned type the letter b bartending income and this is a
deposit we are required to put into that field and we have to put the money amount that we actually
deposited on that date by the way the reference number would be like check number or deposit
number but don't worry about it just leave it and scroll to the right and we click save
now when we close we click reports trial balance the results are as
exactly as what we expected chase bank showed up for the first time as five hundred dollars
and bartending income also increased to five hundred dollars let's do one more
let's imagine on january twenty one we withdrew two hundred dollars from m t bank
for cash on hand now cash on hand we said was another account that you pay from
it's like a bank type of account so in this case you have a choice which register you would like
to record this transaction into you could enter it into the m t register in the payment column
or you could enter it in the cash on hand register as a deposit the results would be exactly the same
it does not matter so let's enter it as a deposit in the cash on hand register because that's
the same thing as opening the m t register and opening it as uh putting it as a payment so what
will be the result well we're taking two hundred dollars from m t bank so that will decrease to 800
and cash on hand will show up in the trial balance for the first time as two hundred dollars
since the topic of this video is deposits let's open up the cash on hand register and record
this as a deposit we click accounting chart of accounts then in the row of cash on hand we click
view register now we're going to add a deposit and the date that we're adding the deposit
is january 21st of 2020 and the account is m t bank m t bank because that's the other account
involved in the situation you can just type the first letter see and then it will filter
and we will here we go m t bank
so we're taking the money from the m t bank and we are depositing it to cash on hand so we have
to make sure that the payee you can leave blank and then the deposit you put two hundred dollars
and now when we click save because you scroll to the right save you can click reports
trial balance and you can see that cash on hand shows up for the first time as
200 and m t bank went down to 800 dollars if you want to see all the transactions that add up to
a specific balance in the trial balance all you have to do is move the mouse to that money amount
and that sum you can double click when you double click a sum total in the trial balance
you will get a window that lists every transaction that was involved uh in that account for example
the two bartending income transactions were january 7th you had molly's saloon
4 000 then again on january 17th you had the beer and go for 1500 and excuse me for 500 and
that's why the balance of bartending income is 1500 at this moment reports trial balance
let's find out why m t bank is eight hundred dollars so we double click the total and you can
see a list of every transaction that was recorded in that account january seventh we got money from
molly's saloon and we deposited from bartending income and it made the balance a thousand
then we'll scroll to the left to get the date january 21 on the next line we put money into
cash on hand we lowered the balance of m t bank which is the account we're in now
we lowered it by 200 and that's the reason the balance in m t bank is eight hundred
dollars you